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 does the term "depreciation" refer to in the context of assets?
View QuestionWhich of the following measures can reduce a trade deficit?
View QuestionWhat is the meaning of “dumping” in international trade?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhich of the following is NOT a component of Aggregate Demand?
View QuestionWhat is “inflation targeting”?
View QuestionWhich economic concept is described as “the next best alternative foregone”?
View QuestionWhat is the primary purpose of Special Economic Zones (SEZs)?
View QuestionWhat is the primary function of the International Monetary Fund (IMF)?
View QuestionWhat is the term for the ability of an economy to produce more output from the same inputs?
View Question