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fully sterilized intervention by the central bank
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?
CUET (PG) - 2023
CUET (PG)
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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