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UPSC 2019: 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
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Not attemptedCorrect Answer: (d) Following an expansionary monetary policy
To arrest a falling rupee, authorities typically try to increase foreign-currency inflows or reduce outflows—e.g., curbing non-essential imports, promoting exports, encouraging Masala Bonds, or easing ECB norms. An expansionary monetary policy lowers interest rates, can fuel inflation and capital outflow, and therefore would likely worsen, not stem, depreciation; thus option (d) is NOT a likely measure. ([vajiramandravi.com](https://vajiramandravi.com/upsc-exam/which-one-of-the-following-is-not-the-most-likely-measure-the-government-rbi-takes-to-stop-the-slide-of-indian-rupee/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2019 Indian Economy question?▼
The correct answer is option (d): Following an expansionary monetary policy. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2019, GS Paper 1, as Question 86. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.