likhoUPSC

Sign in

Home› UPSC CSE› Prelims GS Paper I› 2013 questions› Question 4

UPSC CSE Prelims

Subject: Economy Chapter: External Sector & Foreign Trade

2013 PYQ

Question 4

Which one of the following groups of items is included in India's foreign-exchange reserves?

Choose one answer AForeign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries BForeign-currency assets, gold holdings of the RBI and SDRs CForeign-currency assets, loans from the World Bank and SDRs DForeign-currency assets, gold holdings of the RBI and loans from the World Bank

Skip →

View correct answer and explanation

Correct answer: B

Correct Option: B Explanation: India’s reserve assets include foreign-currency assets, RBI-held gold, SDRs and its reserve tranche position at the IMF; foreign borrowing is not itself a reserve component. Option-wise Analysis: A: Incorrect - Wrong: SDRs and foreign currency are reserve assets, but foreign-country loans are liabilities. B: Correct - Correct: foreign-currency assets, monetary gold and IMF-issued SDRs all form part of reserves. C: Incorrect - Wrong: a World Bank loan is borrowing, not a reserve category. D: Incorrect - Wrong: monetary gold is included, but World Bank loans are not foreign-exchange reserves.

← Previous question Next question →

© 2013 LikhoUPSC · Independent learning website; not affiliated with or endorsed by UPSC.

Previous Year Questions UPSC website NCERT textbooks