economics medium Fill in the Blank

The largest component of India's Foreign Exchange Reserves is ___.

  1. quantitative
  2. health and education
  3. inflation
  4. Foreign Currency Assets (FCA)

Answer: Foreign Currency Assets (FCA)

India's forex reserves comprise Foreign Currency Assets, Gold, Special Drawing Rights (SDRs), and the Reserve Tranche Position (RTP) with the IMF. The FCA, which includes investments in US Treasuries and other sovereign bonds, constitutes the vast majority (over 85%) of the total reserves.

Topic International Economics - Forex
Exam Relevance UPSC Prelims, SSC CGL, Banking
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