Question 5 of 75Indian Economy

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

AConducting ‘Open Market Operations’
BOversight of settlement and payment systems
CDebt and cash management for the Central and State Governments
DRegulating the functions of Non-banking Financial Institutions

Correct Answer

The correct answer is hidden

Explanation

26 words hidden ... sterilization instrument because the RBI can buy or sell government securities to absorb or inject liquidity. The other ... 24 words hidden