Subject: Economics
Book: Comprehensive Indian Economy
India’s forex reserves—comprising foreign currencies, gold, SDRs—are managed by the RBI to maintain market confidence and cushion external shocks. These reserves stabilize the rupee, fund import obligations, and boost creditworthiness. Adequate reserves matter for rating agencies and investor perceptions, especially if global crises arise. Understanding concepts like the import cover ratio and how the RBI uses reserves to intervene in currency markets is vital. Exams may ask about the composition of reserves, reasons for fluctuations, and broader policy approaches to ensure adequate but not excessive reserve accumulation (which could hamper domestic investment).
What is the term for goods that are used together, such as cars and fuel?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhat is the objective of the Pradhan Mantri Jan Dhan Yojana?
View QuestionWhat is meant by “marginal propensity to consume”?
View QuestionWhich of the following is NOT part of the World Bank Group?
View QuestionWhat is meant by “structural unemployment”?
View QuestionWhat is the “law of diminishing marginal utility”?
View QuestionWhat is the term for the price at which demand and supply in a market are equal?
View QuestionWhich of the following is an example of fiscal policy?
View QuestionWhat is the main function of the Reserve Bank of India (RBI)?
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