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      Question

      As per the RBI report, how many months of imports can

      India’s current foreign exchange reserves cover?
      A 6 months Correct Answer Incorrect Answer
      B 9 months Correct Answer Incorrect Answer
      C 11 months Correct Answer Incorrect Answer
      D 12 months Correct Answer Incorrect Answer
      E 15 months Correct Answer Incorrect Answer

      Solution

      India’s foreign exchange reserves are robust enough to cover 11 months of imports, indicating strong external sector resilience. This metric is essential for understanding a country’s ability to manage external shocks, support the rupee, and ensure trade stability in the face of global uncertainties.

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