Question
GSEasyPrelims 2013Economy

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

Explanation

India's foreign-exchange reserves include:

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

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

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

4. 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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