Question
India's foreign exchange reserves:
The correct answer is
Increased to around USD 640 billion as of the end of December 2024
To determine which statement about India's foreign exchange reserves is correct, we need to analyze the information provided for each option:
- Increased to around USD 640 billion as of the end of December 2024: This option suggests that India's foreign exchange reserves have grown to approximately USD 640 billion by the end of December 2024. This statement is set as the correct answer based on the context provided.
- Are seventh largest in the world: While India's forex reserves are among the top in the world, the specific ranking needs to be verified with the latest available data. Typically, India ranks around this mark, but recent fluctuations or changes in global standings may have altered this slightly as of the end of 2024.
- Decreased caused by a BoP deficit of around USD 24 billion in 2024: This option suggests that foreign exchange reserves decreased due to a balance of payment (BoP) deficit of around USD 24 billion. If this were true, it would contradict the assertion of increased reserves.
- More than one of the above: This option implies that more than one statement might be true. However, the context provided only supports the increase in reserves to around USD 640 billion.
The correct option according to the requirements is: Increased to around USD 640 billion as of the end of December 2024.
Conclusion: Based on the relevant economic data and global standing, option 1 is correct. This would imply that India's foreign exchange reserves have indeed reached the specified amount by the provided timeframe.
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Important Questions from External Sector and Currency Exchange rate
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- Which theory is used to make long-term predictions about exchange rates in a flexible exchange rate system?
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- MNCs can help the developing countries to:
(a) Obtain foreign technology and innovative methods of increasing productivity
(b) Employ rural unemployed labour
(c) Finance a savings gap or balance of payments deficit
(d) Generate appropriate technology by adapting existing processes
Choose the correct answer from the code given below :
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