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RBI Grade B Phase 1 PYP >> Jul 9, 2023 - Shift 1 >> General Awareness

Question :

Consider the following statement regarding component of Forex reserve in India and identify the incorrect one

i. Foreign Currency Assets forms the major portion.

ii. Gold and Silver reserve is part of Forex reserve.

iii. SDR is one of the components of Forex.

1. Only I

2. Only II

3. Only III

4. All of the above

5. None of the above

Correct Answer : 2
Solution :

Foreign Currency Assets (FCAs) are the largest component of India's forex reserves, comprising major global currencies like the USD, Euro, Pound Sterling, and Japanese Yen. While gold is a component of forex reserves, silver is not. India's forex reserves include gold but do not include silver. Special Drawing Rights (SDRs), allocated by the IMF, are indeed a part of India's forex reserves.

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