Question:
Fully sterilized intervention by the Central Bank at the time of capital inflows leads to which of the following changes in Central Bank Balance Sheet?
Fully sterilized intervention by the Central Bank at the time of capital inflows leads to which of the following changes in Central Bank Balance Sheet?
Updated On: Mar 10, 2024
- Rise in net foreign assets and decline in domestic assets
- Decline in net foreign assets and rise in domestic assets
- Rise in both net foreign assets and domestic assets
- Decline in both net foreign assets and domestic assets
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The Correct Option is A
Solution and Explanation
The correct answer is (A) : Rise in net foreign assets and decline in domestic assets.
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