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 meaning of “dumping” in international trade?
View QuestionWhat is the significance of “Purchasing Power Parity” (PPP)?
View QuestionWhich of the following is NOT a function of the World Trade Organization (WTO)?
View QuestionWhat is the meaning of “supply-side economics”?
View QuestionWhich of the following is an example of a capital receipt for the government?
View QuestionWhat does “Laissez-faire” policy advocate?
View QuestionWhat is “fiscal stimulus”?
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View QuestionWhat is meant by “liquidity trap”?
View QuestionWhich of the following is a feature of monopolistic competition?
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