A government purchase or sale of currency in the foreign exchange market is called an market intervention.

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Solution

The correct option is B exchange
When the rupee is overvalued, the RBI Governor can support the rupee by “soaking up” the surplus. This is done by buying its own currency in the forex market. A government purchase or sale of currency in the foreign exchange market is called an exchange market intervention.

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Stock exchange markets are called 'secondary markets'. State true or false.

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