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      Question

      What was the primary focus of the new RBI directive

      regarding gold hedging?
      A To increase gold reserves in banks Correct Answer Incorrect Answer
      B To stabilize the Indian Rupee Correct Answer Incorrect Answer
      C To facilitate more efficient risk management for entities dealing with gold price exposure Correct Answer Incorrect Answer
      D To curb illegal gold trading Correct Answer Incorrect Answer
      E To promote gold as the main form of currency Correct Answer Incorrect Answer

      Solution

      The RBI directive expanding hedging options was primarily aimed at facilitating more efficient risk management for entities dealing with gold price exposure, giving them additional flexibility in hedging strategies.

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