Question

When the Reserve Bank says that the Rupee is overvalued, it means
(1) RBI has shortage ofhard currency and it has to order for printing of new notes to the press concerned
(2) Rupee is appreciating against other currencies whereas other currencies are weakeningagainst US Dollar.
(3) Money is locked in banks and people do not have enough tomake their day to day purchases, it is a strategy Which brings the inflation down.
(4)More and more people are selling their stocks. As a result stock market may crash,as there is no hard cash for such voluminous transactions.
(5) None of these

Answer 1

option (4) is the right answer as a result may crash as there is no hard cash for such voluminous transactions