Sterilisation by the RBI means

cleaning old currency notesCorrect answerYour answerclosing weak banksCorrect answerYour answerstopping the import of goldCorrect answerYour answeroffsetting forex inflows' effect on money supplyCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

When the RBI buys dollars it pays in rupees, raising money supply.
Selling securities takes those rupees back, so money supply stays stable.

Concept: Sterilisation
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsOpen market operations

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Sterilisation by the RBI means

Explanation