Home PYQs UPPSC UPPSC MCQs Prelims 2003 (GS Paper I)

Question

Which one of the following statements about foreign exchange reserves of India, is not true:

  1. It includes foreign currency assets and gold holdings of Reserve Bank of India
  2. It is maintained with the Reserve Bank of India
  3. Special drawing rights are not included in it
  4. Presently foreign exchange situation is satisfactory in India.

Answer:

Option D: Presently foreign exchange situation is satisfactory in India.

Detailed Solution:

The correct answer is “Presently foreign exchange situation is satisfactory in India.”.

The main elements of forex reserves in India include foreign currencies, gold reserves, special drawing rights, and the reserve portion in IMF.