New Click here to Enroll in NaBFID Analyst Intro Class on May 6

    Question

    Which institution or entity is custodian of Country’s

    foreign exchange reserve ?
    A Ministry of Finance Correct Answer Incorrect Answer
    B Ministry of Foreign Affairs Correct Answer Incorrect Answer
    C International Monetary Fund Correct Answer Incorrect Answer
    D Ministry of Trade Correct Answer Incorrect Answer
    E Reserve bank of India Correct Answer Incorrect Answer

    Solution

    The foreign exchange reserves are assets held by the central bank in different currencies, such as the US dollar, euro, pound sterling, etc. These reserves play an important role in maintaining the stability of the country's currency and meeting international payment obligations. The RBI manages the foreign exchange reserves in accordance with the Foreign Exchange Management Act (FEMA) and the guidelines of the International Monetary Fund (IMF).

    Practice Next

    Relevant for Exams: