Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?
- A.Curbing imports of non-essential goods and promoting exports
- B.Encouraging Indian borrowers to issue rupee denominated Masala Bonds
- C.Easing conditions relating to external commercial borrowing
- D.Following an expansionary monetary policy
Show answer
Expansionary policy cuts interest rates and adds money to the system, which pushes capital out and weakens the rupee further, so it is not a step to defend the currency.
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