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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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