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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CollectorBabu · Accepted Answer

Correct Answer: Following an expansionary monetary policy. The most unlikely measure amongst the following to stop the slide of the Indian rupee would be following an expansionary monetary policy. Expansionary monetary policy would increase the money supply, lower the interest rate and increase the aggregate demand in the economy. It will finally lead to the lowering of the value of the currency, beating the entire purpose of stopping the slide of the Indian rupee. All the other measures would bring more dollar into the economy, therefore will take the rupee value up.

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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