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 “law of diminishing marginal utility”?
View QuestionWhich of the following is NOT a function of the World Trade Organization (WTO)?
View QuestionWhat is the primary role of the Securities and Exchange Board of India (SEBI)?
View QuestionWhat is meant by “stagflation”?
View QuestionWhich of the following is NOT part of the World Bank Group?
View QuestionWhat is meant by “crowding out” in economics?
View QuestionWhich of the following best describes “capital formation”?
View QuestionWhat is the objective of the Goods and Services Tax (GST)?
View QuestionWhich of the following measures is most effective in controlling inflation?
View QuestionWhat is the meaning of “supply-side economics”?
View Question