Question

What strategic advantage does the selling of Sovereign Gold Bonds (SGBs) by the Reserve Bank of India provide to the country's economy?

Q: Answer-What strategic advantage does the selling of Sovereign Gold Bonds (SGBs) by the Reserve Bank of Indi...

Selling SGBs helps in reducing the physical demand for gold, thereby saving on the import bill for the precious metal, which in turn supports the countrys economy by decreasing the outflow of foreign exchange.

A Direct investment in infrastructure development

B Reduction in the physical demand for gold and saving on import bills

C Increase in foreign currency reserves

D Enhancement of the gold recycling process

E Stabilization of the stock market

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What strategic advantage does the selling of Sovereign Gold Bonds (SGBs) by the Reserve Bank of India provide to the country's economy?

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