Q7 of 15 Page 6

How can the Reserve Bank of India help in bringing down the foreign exchange rate which is very high?

The Reserve Bank of India help in bringing down the foreign exchange rate which is very high in the following manner:

a. It will reduce the imports in the country which will help to keep a check on the inflation of the necessary items.


b. b. It will reduce the exports in the country which will help to ensure an adequate supply of goods in the domestic market.


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