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    Question

    In India, the Reserve Bank of India primarily intervenes

    in the foreign exchange market by using which currency?
    A Euro Correct Answer Incorrect Answer
    B British Pound Correct Answer Incorrect Answer
    C US Dollar Correct Answer Incorrect Answer
    D Japanese Yen Correct Answer Incorrect Answer
    E Chinese Yuan Correct Answer Incorrect Answer

    Solution

    Explanation: RBI intervenes mainly in the US Dollar-INR market since USD is the dominant currency in international trade and finance.

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