Role of RBI in Foreign Exchange

Q. In India, the Reserve Bank of India is the sole custodian of the reserves.

1. foreign exchange
2. gold
3. rupees
4. dollars

Q. Why does the Reserve Bank of India hold foreign currency reserves of India?

1. To share the burden of running the economy with the Government of India
2. To pay for imports from other countries
3. To control the exchange rate of Indian rupee
4. To pay for exports to other countries

Q. For the United States of America, which of the following will be part of its foreign exchnage reserves?

1. US dollar
2. Indian rupee
3. Japanese yen
4. Swiss franc

Q. Which of the following is in charge of looking after the foreign exchange reserves of India?

1. State bank
2. International bank
3. Foreign bank
4. Central bank