_________ is a secret reserve usually created to, provide for the lose by way of fluctuation in the value of investment.

Investment Fluctuation Reserve

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Foreign Exchange Fluctuation Fund

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General Reserve

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Capital Reserve

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Solution

The correct option is A Investment Fluctuation Reserve
Investment Fluctuation Reserve is a reserve created out of the profits to meet the fall in the market value of investments. It is created to adjust the difference between the book value and market value of investment.

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Do we transfer Investment Fluctuation Reserve to Realisation A/c?

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