New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Foreign exchange reserves assets cannot comprise of-

    A Banknotes Correct Answer Incorrect Answer
    B Bank deposits Correct Answer Incorrect Answer
    C Government securities of the reserve currency Correct Answer Incorrect Answer
    D Bonds and treasury bills. Correct Answer Incorrect Answer
    E Commercial Paper Correct Answer Incorrect Answer

    Solution

    Foreign exchange reserves assets can comprise banknotes, bank deposits, and government securities of the reserve currency, such as bonds and treasury bills. Some countries hold a part of their reserves in gold, and special drawing rights are also considered reserve assets.

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