Question
Which of the following components of the Forex Reserves
of India forms the smallest part in terms of value ?Solution
The Balance of payment is the sum of the current and capital account balance. The balance is added to the foreign exchange reserve if the balance of payment is in surplus. The balance is deducted if the balance of payment is in deficit. Foreign Exchange Reserve of a Country = Foreign Currency Assets + Gold + SDR + Reserve Tranche Position (RTP).
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