Question

# Directions for the following: Read the following information and answer the items that follow. Your answers to these items should be based on the information given only. The bar graph given below shows the foreign exchange reserves of a country (in million US $) from 1991 - 1992 to 1998 - 1999. Foreign Exchange Reserves Of a Country. (in million US$) Question 31.For which year, the percent increase of foreign exchange reserves over the previous year, is the highest? (a) 1992-93                                 (b) 1993-94 (c) 1994-95                                (d) 1996-97

Solution

## The correct option is A (a) 1992-93                          Answer 31. (a) Explanation: There is an increase in foreign exchange reserves during the years 1992 - 1993, 1994 - 1995, 1996 - 1997, 1997 - 1998 as compared to previous year (as shown by bar-graph). The percentage increase in reserves during these years compared to previous year are: For 1992 - 1993 =   [(3720 - 2640)/2640 * 100]% = 40.91%.                                  For 1994 - 1995 =   [(3360 - 2520)/2520 * 100]% = 33.33%.                      For 1996 - 1997 =   [(4320 - 3120)/3120 * 100]% = 38.46%.                      For 1997 - 1998 =  [(5040 - 4320)/4320 * 100]% = 16.67%.                      Clearly, the percentage increase over previous year is highest for 1992 - 1993.

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