UPSC Civil Services 2019 Prelims General Studies Paper I

To control rupee weakening,
- A: will help by reducing the Current account deficit.
- B: will help by reducing the demand of dollars in loan-repayment.
- C: will help by increasing the inflow of dollars and other currencies.
- D: will backfire, because rupee currency supply will increase without corresponding increase in the supply of dollars and as a result: dollar will strengthen, Indian Rupee will weaken further. So D is the answer.