Question

For which year, the percent increase in foreign exchange reserves over the previous year, is the highest?

• A. 1992 – 93
• B. 1993 – 94
• C. 1994 – 95
• D. 1996 – 97
• E. 1997 – 98

Answer 1

The correct option is A

1992 – 93

There is an increase in foreign exchange reserves during the years 1992 --93, 1994 -- 95, 1996 -- 97 and 1997 -- 98 as compared to previous year ( as shown by bar-graph).

The percentage increase in reserves during these years compared to previous year are:

(i) For 1992 -- 93 = $\frac{\left(3720-2640\right)}{2640}\times 100=40.91\%$

(ii) For 1994 -- 95 = $\frac{\left(3360-2520\right)}{2520}\times 100=33.33\%$

(iii) For 1996 -- 97 = $\frac{\left(4320-3120\right)}{3120}\times 100=38.46\%$

(iv) For 1997 -- 98 = $\frac{\left(5040-4320\right)}{4320}\times 100=16.67\%$