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      Question

      What was the magnitude of the weekly decline in

      India’s forex reserves as of August 1?
      A $7.8 billion Correct Answer Incorrect Answer
      B $8.5 billion Correct Answer Incorrect Answer
      C $9.3 billion Correct Answer Incorrect Answer
      D $10.1 billion Correct Answer Incorrect Answer
      E $11.0 billion Correct Answer Incorrect Answer

      Solution

      The $9.3 billion drop in forex reserves was one of the significant weekly declines in recent years. This fall reflected RBI’s active foreign exchange market intervention, selling dollars to curb rupee depreciation caused by external tariff threats and global financial pressures.

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