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Question No. 142Interactive Test Mode
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Q142. Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2023 • Indian Economy

Correct Answer: Option (A) — Conducting ‘Open Market Operations’

Concept & Option Breakdown

Standard Reference Verified

Sterilization refers to monetary actions taken by a central bank to neutralize the domestic money supply impact of foreign exchange interventions. When RBI buys foreign currency, it injects rupees; to sterilize this liquidity injection and prevent inflation, it conducts Open Market Operations (OMOs) by selling government securities in the market.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2023 (Q142)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (A) — Conducting ‘Open Market Operations’

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Frequently Asked Questions — UPSC Prelims 2023 Q142

What is the official answer for UPSC Prelims 2023 GS Paper I Question 142 (Indian Economy)?

The official UPSC answer key for this 2023 Indian Economy (Banking & Financial System) question is Option (A): "Conducting ‘Open Market Operations’". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2023 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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