Question

4. If rupee is getting depreciated fast and is considered undesirable by the
Government, the RBI may be advised to
(a) Sell dollars in the foreign exchange market
(b) Purchase dollars
(c) Print more currency notes
(d) Raise tariff on imports​

Answer 1

Answer:

D

Explanation:

Raise tarrif on imports

Answer 2

If the rupee value gets depreciated and considered undesirable by Government, then RBI may be advised to sell dollars in foreign exchange market.

• Option “A” is correct i.e. Sell dollar in foreign exchange market.

• If RBI desires to prop up rupee value, then it can sell dollar and when it wants  

• The Reserve Bank of India is India's central bank, accountable for the issue and supply of the Indian rupee and the guideline of the Indian banking system.

Hope it helped...