Scenario: Suppose India Borrows $10,000 from the United States at the Beginning

Multiple Choice

Scenario: Suppose India borrows $10,000 from the United States at the beginning of 2016. The flexible exchange rate is 50 Indian rupees per dollar.
-Refer to the scenario above.If the government of India wants to repay a lower sum of money to the United States,it should ________ in the foreign exchange market.

A) buy both dollars and rupees
B) buy dollars in exchange for rupees
C) buy rupees in exchange for dollars
D) sell both dollars and rupees