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      Question

      According to the Reserve Bank of India (RBI) Bulletin

      August 2025, India’s foreign exchange reserves reached an all-time high of: 
      A $655 billion Correct Answer Incorrect Answer
      B $675 billion Correct Answer Incorrect Answer
      C $685 billion Correct Answer Incorrect Answer
      D $692 billion Correct Answer Incorrect Answer
      E $702 billion Correct Answer Incorrect Answer

      Solution

      RBI’s August 2025 bulletin reported forex reserves hitting a record $692 billion. This was driven by robust FPI inflows and trade surplus in services. Such reserves provide a strong cushion against external shocks and support the rupee’s stability . 

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