Which one of the following groups of items is included in India’s foreign-exchange reserves?
Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
Foreign-currency assets, gold holdings of the RBI and SDRs
Foreign-currency assets, loans from the World Bank and SDRs
Foreign-currency assets, gold holdings of the RBI and loans the World Bank
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2013
Foreign exchange reserves are assets held by a central bank in foreign currencies, used to back liabilities and influence monetary policy. The major components of India’s foreign exchange reserves are FCAs (investments in foreign government securities, deposits in foreign central banks/BIS), Gold, SDRs (an international reserve asset created by the IMF), and the Reserve Position in the IMF (India’s share in the IMF quota).