In the context of the Indian economy, whic h of the following options correctly describe the…
In the Indian economy, official foreign exchange reserves held and managed by the Reserve Bank of India consist of Foreign Currency Assets (FCAs), Gold holdings of the RBI,…
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In the context of the Indian economy, whic h of the following options correctly describe the composition of the foreign exchange resources ?
Answer and explanation
Correct answer C
In the Indian economy, official foreign exchange reserves held and managed by the Reserve Bank of India consist of Foreign Currency Assets (FCAs), Gold holdings of the RBI, Special Drawing Rights (SDRs), and the Reserve Tranche Position in the IMF. Among the four choices, ('SDRs + Gold holdings of the R.B.I. + Foreign Currency Assets') accurately lists the major reserve asset components, whereas the other three options incorrectly include external liabilities or balance-of-payments flows such as World Bank loans, IMF loans, FDI, NRI remittances, and annual export earnings.
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UGC NET Economics