Economics · Monetary Policy & Sterilisation Operations
In the context of monetary policy operations aimed at neutralizing excess liquidity arising from foreign exchange interventions, which action is most directly defined as sterilization?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Oversight of payment settlement infrastructure
- 2Management of government borrowing programmes
- 3Regulation of financial intermediaries to ensure systemic stability
- 4Sale or purchase of government securities by the central bank in the open market✓
Correct answer
Sale or purchase of government securities by the central bank in the open market
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