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Railways PYQCBT 1 2016

RRB NTPC · Question 95

Which of the following is not true in regard to the exchange rate of Indian Rupee ?

  1. Mainly, its price is in terms of US Dollar.

  2. It is decided by Reserve Bank of India.

  3. It is published by Reserve bank of India.

  4. It is decided by market forces.

Show answer & explanation

Answer: (B) It is decided by Reserve Bank of India.

Explanation

Since 1993 India has had a market-determined exchange rate: the rupee's value (mainly against the US dollar) is set by demand and supply in the forex market. The RBI publishes a daily reference rate and can intervene, but it does not decide the rate, so statement B is not true.