Question

The exchange rate between the Indian rupee (IN

  • D has been fluctuating significantly due to global economic uncertainties and changes in investor sentiment. The Reserve Bank of India (RB
  • I is closely monitoring the situation and may intervene in the foreign exchange market to stabilize the rupee. Which of the following is NOT a tool that the RBI can use to intervene in the foreign exchange market?
  • R and the US dollar (US
A Buying or selling US dollars in the market.
B Changing the repo rate.
C Imposing capital controls on foreign exchange transactions.
D Increasing taxes on imported goods.
E All of the above are tools that the RBI can use.
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