Which of the followings are the parts of Foreign Exchange Reserve in India?A.Foreign Currency Asset…
India's foreign exchange reserves, held by the RBI, consist of foreign currency assets, gold, Special Drawing Rights and the reserve tranche position in the IMF. So foreign…
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Which of the followings are the parts of Foreign Exchange Reserve in India?
A.Foreign Currency Asset B.Gold C.Foreign Currency and Securities held by Cooperative Banks and bodies D.Foreign Currency held by Commercial Banks
Answer and explanation
Correct answer A
India's foreign exchange reserves, held by the RBI, consist of foreign currency assets, gold, Special Drawing Rights and the reserve tranche position in the IMF. So foreign currency assets and gold are parts of the reserves. Foreign currency and securities held by cooperative or commercial banks belong to those banks, not to the official reserves.
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UGC NET Economics