The correct answer is: B. 1991
The association of the rupee with pound sterling as the intervention currency was broken in 1991. This was done as part of the Indian government’s economic reforms, which were aimed at liberalizing the economy and making it more market-oriented.
Prior to 1991, the Indian rupee was pegged to the pound sterling. This meant that the value of the rupee was fixed against the pound sterling, and the Indian government would intervene in the foreign exchange market to keep the value of the rupee within a narrow band.
However, this system was not sustainable in the long run. The Indian economy was growing rapidly, and the demand for foreign exchange was increasing. This put pressure on the value of the rupee, and the Indian government was forced to spend large amounts of foreign exchange to keep the value of the rupee within the narrow band.
In 1991, the Indian government decided to break the association of the rupee with the pound sterling. This allowed the value of the rupee to float freely against other currencies. The Indian government also took other measures to liberalize the economy, such as reducing tariffs and import quotas.
These reforms were successful in liberalizing the Indian economy and making it more market-oriented. The value of the rupee has fluctuated since 1991, but it has generally been stable. The Indian economy has also grown rapidly since 1991, and India is now one of the fastest growing economies in the world.
The other options are incorrect because they are not the year in which the association of the rupee with pound sterling as the intervention currency was broken.