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Question

Q.‘India’s Forex Reserves’ comprises of:

A

Foreign Currency Assets, Gold reserves, Special Drawing Rights and India’s reserve position with IMF
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B

G-secs, Special Drawing Rights, Gold reserves and India’s reserve position with the IMF.
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C

Foreign Currency Assets, Special Drawing Rights, and Gold reserves
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D

Foreign Currency Assets, Bonds of different countries, Special Drawing Rights and India’s reserve position with the IMF.
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Solution

The correct option is A
Foreign Currency Assets, Gold reserves, Special Drawing Rights and India’s reserve position with IMF
Explanation:

India's forex reserves comprises of
  1. Foreign Currency Assets (FCAs)
  2. gold reserves
  3. Special Drawing Rights (SDRs)
  4. India's reserve position with the International Monetary Fund.

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