Question

    Consider the following statement regarding component of Forex reserve in India and identify the incorrect one

    i.     Foreign Currency Assets forms the major portion .

    ii.     Gold and Silver reserve is part of Forex reserve .

    iii.     SDR is one of the component of Forex . 

    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C Only III Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Forex reserves are foreign currency assets held by the central banks of countries . These assets include foreign marketable securities, monetary gold, special drawing rights ( SDRs ) and reserve position in the IMF .

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