the rupee dollar exchange rate is too high. the RBI can bring it down by :
1. selling foreign currency in the foreign exchange market
2. buying foreign currency in the foreign exchange market.
3. repayment of loan taken from the world Bank.
4. both 1 and 2
Dear Student
Correct option is 1.( selling foreign currency in the foreign exchange market).
Selling foreign currency will lead to increase in our own currency and decrease in the stock of foreign reserves.
Regards
Correct option is 1.( selling foreign currency in the foreign exchange market).
Selling foreign currency will lead to increase in our own currency and decrease in the stock of foreign reserves.
Regards