Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?
Conducting 'Open Market Operations'
Oversight of settlement and payment systems
Debt and cash management for the Central and State Governments
Regulating the functions of Non-banking Financial Institutions
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2023
– Its purpose is to neutralize the impact of foreign exchange interventions on domestic money supply.
– The primary tool used for sterilization is Open Market Operations (buying or selling government securities).