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 main purpose of monetary policy?
View QuestionWhat does the term “national income” refer to?
View QuestionWhat is meant by “marginal propensity to consume”?
View QuestionWhat is the term for goods that are used together, such as cars and fuel?
View QuestionWhat is the main feature of a free-market economy?
View QuestionWhat is meant by “liquidity trap”?
View QuestionWhat is the primary goal of a progressive tax system?
View QuestionWhich of the following is NOT an example of an indirect tax?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhich is the largest source of tax revenue for the Government of India?
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