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      Question

      The recent RBI $5 billion USD/INR swap is expected to

      drain approximately how much liquidity from the system?
      A ₹33,000 crore Correct Answer Incorrect Answer
      B ₹38,000 crore Correct Answer Incorrect Answer
      C ₹40,000 crore Correct Answer Incorrect Answer
      D ₹43,000 crore Correct Answer Incorrect Answer
      E ₹45,000 crore Correct Answer Incorrect Answer

      Solution

      In a USD/INR buy/sell swap, the RBI sells dollars and buys rupees to absorb liquidity. The second leg of this $5 billion swap is expected to drain ₹43,000 crore from the system. However, given the surplus liquidity (₹4.09 lakh crore), the overall impact on liquidity conditions remains limited.

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