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 does not form a part of the foreign exchange reserves of India?
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Foreign currency & securities held by the banks & corporate bodies
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Gold
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SDR
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Foreign currency assets
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Explanation:
Detailed explanation-1: -Silver holding of the RBI is not included in the foreign exchange reserves of India.
Detailed explanation-2: -Reserves are appropriations against profits, they are created from profits for future applications, securities premium is collected when share are issued over its face value hence its not a reserve.
Detailed explanation-3: -Import of Goods and Services: In the case of the Import of goods and services from a foreign country the payment is made by the importer (the person who imports goods and services) in foreign currency; thus, creating a demand for foreign exchange in India’s Foreign Exchange Market.
Detailed explanation-4: -FCA is the largest component of the forex reserve. 2. Gold. 3.
There is 1 question to complete.