Question
Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?
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Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?
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• Correct Answer: A
• Sterilization neutralizes forex intervention impact on money supply; RBI sells G-Secs via OMO to mop up excess rupee liquidity after dollar purchases.
• Payment oversight, government debt management, and NBFC regulation are unrelated to sterilization.
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