Question

95. Which one of the following groups of items is included in India’s foreign-exchange reserves? [2013 - I]

• A. a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
• B. b) Foreign-currency assets, gold holdings of the RBI and SDR’s
• C. c) Foreign-currency assets, loans from the World Bank and SDRs
• D. d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

Answer 1

The correct option is B

b) Foreign-currency assets, gold holdings of the RBI and SDR’s

Ans: b

In India’s foreign exchange reserve, it includes foreign currency deposits, bonds, gold reserves, SDRs and IMF reserve position. Foreign exchange reserves are an important part of the international investment position of a country