GyanGram
ATTEMPT · INDIAN ECONOMY · PRELIMS 2019
Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of India…
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Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?
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• Correct Answer: D
• An expansionary monetary policy (lower interest rates, higher money supply) triggers capital outflows and weakens the rupee.
• Curbing non-essential imports, promoting Masala Bonds, and easing ECB conditions attract forex and support the rupee.
• Options A, B, and C are measures to stop the rupee's slide, not D.
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