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).
Which of the following statements best defines Gross Domestic Product (GDP)?
View QuestionWhat is the meaning of “dumping” in international trade?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhat is meant by “structural unemployment”?
View QuestionWhich of the following best describes “capital formation”?
View QuestionWhat is the main objective of disinvestment in public sector undertakings (PSUs)?
View QuestionWhich of the following is an example of a public sector undertaking (PSU) in India?
View QuestionWhich of the following is a characteristic of “perfect competition”?
View QuestionWhich of the following measures can reduce a trade deficit?
View QuestionWhich of the following is a feature of a command economy?
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