he Reserve Bank of India is said to have intervened lately to arrest the rupee's slide by selling Dollars on a large scale. Source: The Economic Times, March 03, 2021 Which of the following statements regarding the above news is FALSE? A. The transaction above will be termed as an accommodating transaction. B. The foreign exchange rate for one rupee must be rising before intervention. C. The value of the rupee against one dollar must be rising before the intervention. D. The transaction will be categorised as a below-the-line item in the balance of payments.

he Reserve Bank of India is said to have intervened lately to arrest t

1.	he Reserve Bank of India is said to have intervened lately to arrest the rupee's slide by selling Dollars on a large scale. Source: The Economic Times, March 03, 2021 Which of the following statements regarding the above news is FALSE? A. The transaction above will be termed as an accommodating transaction. B. The foreign exchange rate for one rupee must be rising before intervention. C. The value of the rupee against one dollar must be rising before the intervention. D. The transaction will be categorised as a below-the-line item in the balance of payments.
Answer» C. The value of the rupee against one dollar must be rising before the intervention.

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