QUESTION

Easy

Economy

Prelims 2013

Which one of the following groups of items are included in India’s foreign-exchange reserves?

Select an option to attempt

Explanation

India's foreign-exchange reserves include

Foreign currency assets (FCAs) This is the largest component, consisting of deposits and holdings in major currencies like US Dollars, Euros, and Yen.

Gold reserves India holds a significant amount of gold bullion as part of its foreign exchange reserves.

Special drawing rights (SDRs) These are international reserve assets created by the International Monetary Fund (IMF) that supplement official foreign reserves.

Reserve position in the IMF This refers to India's quota or shareholding position in the IMF, which can be a source of additional foreign currency if needed.

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