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    Question

    RBI’s foreign currency assets represent holdings in

    which category? 
    A Public investments in foreign bonds Correct Answer Incorrect Answer
    B Foreign reserves like USD, EUR, GBP, YEN Correct Answer Incorrect Answer
    C Commercial bank assets abroad Correct Answer Incorrect Answer
    D Foreign currency bonds issued by RBI Correct Answer Incorrect Answer
    E Direct equity investments overseas Correct Answer Incorrect Answer

    Solution

    FCAs are the RBI’s financial reserves of foreign-denominated assets (like USD, EUR, GBP, YEN, etc.), held as foreign exchange reserves to support India’s currency stability and external commitments. 

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