Economics · Monetary Policy

Which action of the Reserve Bank of India is known as its sterilization function?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Open market sale or purchase of government securities to absorb or inject liquidity✓
2Acting as the 'lender of the last resort' for commercial banks
3Regulating and supervising non-banking financial institutions
4Governing the bank rate, cash reserve ratio, and statutory liquidity ratio

Correct answer

Open market sale or purchase of government securities to absorb or inject liquidity

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