Question

Which one of the following is included in india's foreign-exchange reserves? (upsc-pre-2013)

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

Answer 1

India's foreign-exchange reserves include foreign-currency assets, the gold holdings of the RBI, and Special Drawing Rights (SDRs), as per option B is correct.

Step-by-step explanation:

The question seeks to identify what is included in India's foreign-exchange reserves. The correct answer is option B: 'foreign-currency assets, gold holdings of the RBI, and Special Drawing Rights (SDRs)'.

India's foreign-exchange reserves consist of foreign-currency assets, which are assets in major currencies such as the US dollar, euro, pound sterling, and yen held by India's central bank, the Reserve Bank of India (RBI); gold holdings of the RBI, which represent the physical gold reserves held by the central bank; and Special Drawing Rights (SDRs), which are international reserve assets created by the International Monetary Fund (IMF) to supplement its member countries' official reserves.