2019
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following organizations has decided to inject liquidity via forex swaps?
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IRDA
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NABARD
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RBI
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SEBI
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Explanation:
Detailed explanation-1: -The central bank has been selling dollars in spot and conducting buy/sell swaps to shift the delivery of dollars to a future date. A buy/sell swap involves an agreement to buy dollars at the spot date and to sell dollars at a future predetermined rate.
Detailed explanation-2: -The RBI has to consider financial market conditions, impact of imported inflation and the acute shortage of US dollars (USD and/or $) in the market and accordingly decide to sell US dollars to keep the Indian Rupee (INR and/or Rs) from depreciating sharply.
There is 1 question to complete.