Which one of the following groups of items is included in India’s foreign-exchange reserves?
[UPSC Civil Services Exam – 2013 Prelims]
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDRs
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
Answer: (b)
Explanation:
- India’s foreign-exchange reserves include Foreign-currency assets (FCA), Gold reserves, Special Drawing Rights (SDRs) and reserve position with the IMF.
- Foreign-exchange reserves are those reserves which a country’s central bank keeps, generally in the form of US dollars.