gs1medium
Which one of the following groups of items is included in India’s foreign–exchange reserves?
- 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 & Explanation
Correct answer: B. Foreign–currency assets, gold holdings of the RBI and SDRs.
India's foreign exchange reserves are primarily composed of foreign currency assets, gold held by the Reserve Bank of India, and Special Drawing Rights (SDRs) allocated by the International Monetary Fund. Loans from foreign countries or international institutions like the World Bank are liabilities, not assets that constitute reserves.
Source: UPSC gs1 2013