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UPSC Prelims 2023 Paper-1 📅 28 May, 2023

Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

A
Conducting 'Open Market Operations'
B
Oversight of settlement and payment systems
C
Debt and cash management for the Central and State Governments
D
Regulating the functions of Non-banking Financial Institutions
Result Summary
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APEDIA

UPSC Prelims
2023 • 28 May, 2023 • Paper-1
Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?
Correct Answer
Conducting 'Open Market Operations'
Subject: Economy.Context: RBI's Monetary Tools.Details: Sterilization refers to the interventions made by the central bank to neutralize the effects of foreign ......
Ref/Book : UPSC Prelims 2023
Ref. Subject Economy
Chapter -
Ref. Topic Banking & RBI
Pg. No -
💡 Analysis & Explanation
Subject ▼
Economy.
Context ▼
RBI's Monetary Tools.
Details ▼
Sterilization refers to the interventions made by the central bank to neutralize the effects of foreign exchange inflows or outflows on the domestic money supply. The RBI actively conducts Open Market Operations (OMOs) — buying or selling government securities — to achieve this balance.
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