Question
Consider the following statement regarding component of
Forex reserve in India and identify the incorrect one i. Foreign Currency Assets forms the major portion . ii. Gold and Silver reserve is part of Forex reserve . iii. SDR is one of the component of Forex .Solution
Forex reserves are foreign currency assets held by the central banks of countries . These assets include foreign marketable securities, monetary gold, special drawing rights ( SDRs ) and reserve position in the IMF .
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