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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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