UPSC Exam  >  UPSC Questions  >  With reference to the Foreign exchange reserv... Start Learning for Free
With reference to the Foreign exchange reserves, consider the following statements:
1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.
2. SEBI is the custodian of the Foreign exchange reserves in India.
Which of the statements given above 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?
Most Upvoted Answer
With reference to the Foreign exchange reserves, consider the followin...
Foreign exchange reserves fell by $7. 5 billion to $572 billion during the week ended July 15, according to data released by the RBI.
Foreign exchange reserves (Forex Reserve)
  • Foreign Exchange reserves or Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.
  • RBI is the custodian of the Foreign exchange reserves in India.
  • It checks the balance payments and influences the foreign exchange rate of its currency and maintains stability in financial markets.
Hence only statement 1 is correct.
Free Test
Community Answer
With reference to the Foreign exchange reserves, consider the followin...
Explanation:

Forex reserves:
- Forex reserves are assets held by a central bank or other monetary authority in foreign currencies, gold reserves, special drawing rights (SDRs), and reserve position in the International Monetary Fund (IMF).
- These reserves are used to stabilize the domestic currency, provide confidence to markets, and to maintain liquidity in case of economic crises.

SEBI's role:
- Securities and Exchange Board of India (SEBI) is the regulatory body for the securities market in India.
- SEBI does not play a direct role in managing foreign exchange reserves. Instead, the Reserve Bank of India (RBI) is responsible for managing India's foreign exchange reserves.
- RBI manages the forex reserves to maintain stability in the currency exchange rate, to provide liquidity for external payments, and to build confidence in the Indian economy.
Therefore, statement 1 is correct as it accurately defines forex reserves, while statement 2 is incorrect as SEBI is not the custodian of the foreign exchange reserves in India.
Explore Courses for UPSC exam

Similar UPSC Doubts

Top Courses for UPSC

With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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?
Question Description
With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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 UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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 UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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?.
Solutions for With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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? defined & explained in the simplest way possible. Besides giving the explanation of With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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?, a detailed solution for With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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? has been provided alongside types of With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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? theory, EduRev gives you an ample number of questions to practice With reference to the Foreign exchange reserves, consider the following statements:1. Forex reserves are assets such as foreign currencies, gold reserves, treasury bills, etc retained by a central bank or other monetary authority.2. SEBI is the custodian of the Foreign exchange reserves in India.Which of the statements given above 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? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev