Economics · Monetary Policy

Analyze the impact of 'Open Market Operations (OMO)' on the banking system: Statement I: OMO involves the outright purchase and sale of government securities by the RBI to regulate durable, long-term liquidity in the market. Statement II: When the RBI conducts an 'OMO Purchase,' it results in an increase in the cash reserves of commercial banks and downward pressure on short-to-medium term interest rates. Statement III: OMOs are primarily and exclusively used to manage overnight micro-fluctuations in the call money market. Statement IV: 'Operation Twist' is a special type of OMO where the RBI simultaneously buys long-term securities and sells short-term securities. Which statements are accurate?