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Questions and Answers
Which parameter is NOT considered when assessing the adequacy of forex reserves?
Which parameter is NOT considered when assessing the adequacy of forex reserves?
- Import cover
- Current account surplus (correct)
- Composition of capital inflows
- Risk profile of capital inflows
How has India accumulated its forex reserves?
How has India accumulated its forex reserves?
- Through borrowed capital inflows (correct)
- Through export earnings
- Through surplus current account
- Through foreign direct investment
What does the text suggest about the nature of India's forex reserves?
What does the text suggest about the nature of India's forex reserves?
- They are earned through export earnings
- They are borrowed and may need to be returned (correct)
- They are accumulated through foreign direct investment
- They are accumulated through surplus current account
When did the capital flows reverse in India?
When did the capital flows reverse in India?
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