Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?
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A medium Economy multiple-choice question from UPSC Prelims 2023. Attempt it above, then check the correct answer and detailed explanation below.
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Correct answer: A. Conducting 'Open Market Operations'
Sterilization refers to the process by which the Reserve Bank of India conducts Open Market Operations to neutralize the impact of foreign exchange inflows or outflows on domestic money supply.
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