Daily News Analysis

Open Market Operations (OMO)

stylish_lining

Open Market Operations (OMO)

 

 

  1. It refers to the purchase and sale of securities (treasury bills and government securities) in open market by the central bank of any country.
  2. This is done to regulate money supply in the economy.
  3. OMO is one of the most important ways of monetary control that is exercised by the central banks. 
  4. The central bank sells securities in the market when it wants to reduce the money supply in the market, with an intention to increase interest rates. This policy is also known as the contractionary monetary policy.
  5. The central bank purchase securities from the market when it wants to increase the money supply in the market. This step is taken to reduce the rate of interest and also to help in the economic growth of the country. This policy is known as the expansionary monetary policy.
  6. There is no involvement of the public in OMO and are carried out by the central bank in association with the commercial banks.

Gini Coefficient

The Gini coefficient is a key measure used in economics to quantify income inequality within a country or region. Developed by the Italian statistician Corrado Gini, it serves as an essential tool
Share It

Onge Tribe

The Onge tribe, one of the most ancient and primitive tribes of India, is a fascinating yet vulnerable community that resides on Little Andaman Island. Recently, the Andaman and Nicobar Islands ad
Share It

Nipah Virus

Nipah Virus (NiV) is an emerging zoonotic virus that poses a serious health risk due to its high mortality rate and ability to spread through both animal-to-human and human-to-human transmission.
Share It

WHO’s "3 by 35" Initiative

The World Health Organization (WHO) recently launched the "3 by 35" initiative, which aims to reduce the harmful consumption of tobacco, alcohol, and sugary drinks globally. This is part
Share It

Bond Yield

According to Bank of Baroda Research, the yield on India’s benchmark 10-year government bonds is expected to stay soft (low) in July. This indicates stable or easing borrowing costs for the
Share It

VWAP for Institutional Investors

In a move aimed at making trading more transparent and efficient for institutional investors and market participants, SEBI (Securities and Exchange Board of India) has mandated the issuance of a C
Share It

Genome Sequencing

The recent sequencing of the oldest ancient Egyptian genome, dating back 4,500 to 4,800 years, is a groundbreaking achievement in the field of genomics. About the Genome: A genome is the com
Share It

Financial Fraud Risk Indicator (FRI)

Recently, the Reserve Bank of India’s (RBI) directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicat
Share It

Very Massive Stars

Very Massive Stars, sometimes referred to as Very Luminous Stars, are celestial giants that possess over 100 times the mass of the Sun. These stars are critical to our understanding of the evoluti
Share It

Right to Privacy

The Madras High Court's judgment quashing the 2011 phone-tapping order issued by the Union Ministry of Home Affairs (MHA) marks a crucial turning point in the interpretation of the right to pr
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS