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 term for goods that are used together, such as cars and fuel?
View QuestionWhat does “primary sector” of the economy include?
View QuestionWhich of the following is NOT an example of a direct tax?
View QuestionWhat is the main function of the Reserve Bank of India (RBI)?
View QuestionWhat is the “law of diminishing marginal utility”?
View QuestionWhich of the following measures is most effective in controlling inflation?
View QuestionWhich of the following sectors contributes the most to India’s GDP?
View QuestionWhich of the following is an example of a capital receipt for the government?
View QuestionWhat is the main objective of disinvestment in public sector undertakings (PSUs)?
View QuestionWhat is the term for the ability of an economy to produce more output from the same inputs?
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