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    Question

    Of the following components of India’s Foreign

    Exchange Reserves, which has maximum share?
    A Foreign currency assets (FCAs) Correct Answer Incorrect Answer
    B Gold Special Drawing Rights (SDRs) Correct Answer Incorrect Answer
    C Gold Correct Answer Incorrect Answer
    D RBI’s Reserve position with International Monetary Fund (IMF) Correct Answer Incorrect Answer
    E All have equal share Correct Answer Incorrect Answer

    Solution

    India’s Forex reserves have increased to$371.13 billion as on April 21, 2017. FCAs constitute the largest component it which was $347.48 billion. FCAs consist of US dollar and other major non-US global currencies. It also comprises of investments in US Treasury bonds, bonds of other selected governments, deposits with foreign central and commercial banks. The gold reserves stood at $19.86 billion. SDRs’ value was $1.45 billion. RBI’s reserve position with the IMF was $2.33 billion.

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