Consider the following statements regarding Open Market Operations (OMO) conducted by the Reserve Bank of India: 1. OMOs involve the outright purchase and sale of both government securities and high-quality corporate bonds in the open market. 2. When the RBI purchases government securities under OMO, it injects liquidity into the banking system. 3. Operation Twist is a special form of OMO where the RBI simultaneously buys long-term and sells short-term government securities. Which of the statements given above are correct?
Options:
- A: 1 and 2 only
- B: 1 and 3 only
- C: 2 and 3 only
- D: 1, 2 and 3
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