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Question

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

A
US dollar
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B
Indian rupee
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C
Japanese yen
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D
Swiss franc
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Solution

The correct option is D Swiss franc
Foreign currency is any currency other than a country’s own currency. For the USA, all currencies except the US dollar are foreign currencies. The central bank of a country is responsible for maintaining the foreign exchange reserves. In India, the RBI is RBI the sole custodian of the foreign exchange reserves.

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