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 tariffs on imports

Question

Quizplus · Accepted Answer

Selling dollars in the foreign exchange market increases the supply of dollars, making the rupee stronger compared to the dollar. This action helps in appreciating the value of the rupee, countering its fast depreciation.

If Rupee Is Getting Depreciated Fast and Is Considered Undesirable