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      Question

      India’s foreign exchange reserves declined by $2.16

      billion in the week ending October 18 due to:
      A Increased gold purchases Correct Answer Incorrect Answer
      B Higher SDR inflows Correct Answer Incorrect Answer
      C Depreciation of non-US currencies Correct Answer Incorrect Answer
      D Lower demand for exports Correct Answer Incorrect Answer
      E Increased crude oil imports Correct Answer Incorrect Answer

      Solution

      The decline was influenced by depreciation of non-US currencies such as the euro, pound, and yen, affecting the value of India’s foreign currency assets.

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