BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following acts as the first line of defense for India in case of economic slowdown?
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Securities
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Foreign-exchange reserves
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Currency
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Gold reserves
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Explanation:
Detailed explanation-1: -Foreign-exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs. Foreign exchange reserves facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Detailed explanation-2: -Complete answer: Out of the given options, the industry in which India earns its maximum foreign exchange is Iron industry. The value of iron metal traded from India added up to almost 186 billion rupees in the financial year 2020.
Detailed explanation-3: -Fighting a Currency Crisis Central banks are the first line of defense in maintaining the stability of a currency.
There is 1 question to complete.