Question

Which of the following was not the reason for the recent slide of Indian Rupee?

• A. Huge trade Deficit
• B. Low Growth and High Inflation
• C. Low Capital Inflow
• D. Burgeoning current account deficit
• E. High employment rate

Hint:

Currency slides are linked to economic weaknesses; high employment is a strength, not a cause.

Answer 1

Answer: (E)

Step 1: Identify causes of currency depreciation.
A currency slide is typically caused by trade deficits, low growth, high inflation, low capital inflow, and current account deficits.
Step 2: Evaluate the options.
High employment rate (E) is generally a positive economic indicator and not a direct cause of currency depreciation.
Step 3: Eliminate distractors.
(A), (B), (C), (D) are known factors weakening the rupee.
Therefore: The correct answer is (E). \[ \boxed{\text{E}} \]