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Question : Which of the following does not form a part of the foreign exchange reserve of India?

Option 1: Gold

Option 2: SDRs

Option 3: Foreign currency assests

Option 4: Foreign currency and securities held by the banks and corporate bodies


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Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Foreign currency and securities held by the banks and corporate bodies


Solution : Correct Answer is  Foreign currency and securities held by the banks and corporate bodies

A central bank's holdings in foreign currencies are known as foreign exchange reserves. These reserves are employed to support obligations and affect monetary policy. Foreign currency assets, the RBI's gold holdings, and Special Drawing Rights (SDR) are the items that make up India's foreign exchange reserves. India's foreign exchange reserves do not include any foreign currency or securities that banks or other corporate entities hold.

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