BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gold
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Foreign Assets
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SDR
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Reserve Tranche with IMF
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Detailed explanation-1: -India’s foreign exchange reserves are mainly composed of US dollar in the forms of US government bonds and institutional bonds. with nearly 7.34% of forex reserves in gold. The FCAs also include investments in US Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks.
Detailed explanation-2: -China is the top country by foreign exchange reserves in the world. As of November 2022, foreign exchange reserves in China was 3, 180, 689 million US dollars that accounts for 37.92% of the world’s foreign exchange reserves.
Detailed explanation-3: -Foreign assets comprise assets that are not denominated in the domestic currency of the country. All income generated by a foreign asset is in terms of foreign currency. For example, US Government bonds pay interest in US dollars, and Japanese Government bonds pay interest in Japanese yen.
Detailed explanation-4: -FCA is the largest component of the forex reserve. 2. Gold. 3.