Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — Foreign-currency assets, gold holdings of the RBI and SDRs
Concept & Option Breakdown
Standard Reference VerifiedIndia's foreign exchange reserves comprise four elements:
- Foreign Currency Assets (FCAs)
- Gold holdings of the RBI
- Special Drawing Rights (SDRs)
- Reserve Tranche Position (RTP) in the IMF. Foreign loans or World Bank loans are liabilities, not reserve assets.
Foreign exchange reserves represent assets, not liabilities; eliminate any option containing 'loans'.
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