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      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 . 
      A Only I Correct Answer Incorrect Answer
      B Only II Correct Answer Incorrect Answer
      C Only III Correct Answer Incorrect Answer
      D All of the above Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      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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