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Consider the following statements.
1. The RBI's net forex reserve is part of the economy's or Government'sGovernment's Reserve Money (RM).
2. India'sIndia's foreign exchange reserves have never exceeded its overall external debt (including that of the private sector).
Which of the above statements is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Consider the following statements.1. The RBIs net forex reserve is par...
The gross amount of the following six segments of money at any point of time is known as the Reserve Money (RM) for the economy or the Government:
  • RBI'sRBI's net credit to the Government;
  • RBI'sRBI's net credit to the Banks;
  • RBI'sRBI's net credit to the commercial banks;
  • Net forex reserve with the RBI;
  • Government'sGovernment's currency liabilities to the public;
  • Net non-monetary liabilities of the RBI.
India'sIndia's forex reserves stood at US$ 584.24 as of January 15, 2021, greater than India'sIndia's total external debt (including that of the private sector) of US$ 556.2 bn as of September 2020.
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Consider the following statements.1. The RBIs net forex reserve is part of the economys or GovernmentsGovernments Reserve Money (RM).2. IndiasIndias foreign exchange reserves have never exceeded its overall external debt (including that of the private sector).Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements.1. The RBIs net forex reserve is part of the economys or GovernmentsGovernments Reserve Money (RM).2. IndiasIndias foreign exchange reserves have never exceeded its overall external debt (including that of the private sector).Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements.1. The RBIs net forex reserve is part of the economys or GovernmentsGovernments Reserve Money (RM).2. IndiasIndias foreign exchange reserves have never exceeded its overall external debt (including that of the private sector).Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. The RBIs net forex reserve is part of the economys or GovernmentsGovernments Reserve Money (RM).2. IndiasIndias foreign exchange reserves have never exceeded its overall external debt (including that of the private sector).Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
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