SSC Economics Sample Paper NCERT Sample Paper-5

  • question_answer
    Important source of rising Foreign Exchange Reserves in India are-

    A)  Foreign investment

    B)  NRI deposits

    C)  External Commercial Borrowings (ECB)

    D)  All the above

    Correct Answer: D

    Solution :

    [d] The Foreign exchange reserves of India are mainly composed of US dollar in the forms of US government bonds and institutional bonds. Foreign exchange reserves act as the first line of defence for India in case of economic slowdown, but acquisition of reserves has its own costs.

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