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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