In the context of macroeconomics 39 Sterilisation 39 refers to ........

Economic Affairs Money Supply and Monetary Policy

In the context of macroeconomics, 'Sterilisation' refers to :

demonetization of currency to reduce corruption in shadow economy

operations by the RBI to neutralize the effects of high fiscal deficit on the economy

operations by RBI to neutralize effects of excess inflow of foreign investments in the economy

operations by RBI to neutralize the effects of high non performing assets on the economy

Sterilization is intervention by the monetary authority of a country in the money market to keep the money supply stable against exogenous or sometimes external shocks such as an increase in foreign exchange inflow. It is a form of monetary action in which a central bank seeks to limit the effect of inflows and outflows of capital on the money supply. Hence option (c) is the correct answer.
Sterilization most frequently involves the purchase or sale of financial assets by a central bank, and is designed to offset the effect of foreign exchange intervention. It refers to the process by which the RBI takes away money from the banking system to neutralise the fresh money that enters the system