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    Question

    The intervention by the monetary authority of a country

    in the money market to keep the money supply stable against external shocks is called _______.
    A sterilisation Correct Answer Incorrect Answer
    B reserve deposit Correct Answer Incorrect Answer
    C speculative demand Correct Answer Incorrect Answer
    D statutory liquidity Correct Answer Incorrect Answer

    Solution

    The intervention by the monetary authority of a country in the money market to keep the money supply stable against external shocks is called Sterilisation.

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