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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Loans
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Domestic currency
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Foreign currency assets
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Detailed explanation-1: -FCA is the largest component of the forex reserve. 2. Gold. 3.
Detailed explanation-2: -The reserves are managed by the Reserve Bank of India for the Indian government and the main component is foreign currency assets.
Detailed explanation-3: -Foreign exchange reserves are also known as reserve assets and include foreign banknotes, foreign bank deposits, foreign treasury bills, and short and long-term foreign government securities, as well as gold reserves, special drawing rights (SDRs), and International Monetary Fund (IMF) reserve positions.
Detailed explanation-4: -According to RBI’s latest data, India’s foreign currency assets, the biggest component of the forex reserves, rose by USD 9.078 billion to USD 505.519 billion. Gold reserves rose by USD 1.106 to USD 42.890 billion. Notably, at the start of last year-2022, the overall forex reserves were at about USD 633 billion.
Detailed explanation-5: -Exports, direct purchases, and remittances from abroad are sources of supply of foreign currency.