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Q » What is open market operation (OMO)?
06 Dec, 2025
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A » Open Market Operation (OMO) refers to the buying and selling of government securities by a central bank, such as the Federal Reserve, to regulate the money supply and influence interest rates. By purchasing securities, the central bank injects liquidity into the economy, lowering interest rates, while selling them withdraws liquidity, potentially raising rates. OMOs are crucial monetary policy tools used to ensure economic stability and control inflation.
06 Dec, 2025
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