Forex Reserves of India and Forex Management

General Knowledge Test with questions about different types of economies for exams like UPSC, SSC, UPPSC, Banking, RPSC, MPSC, KAS, MPPSC, and others.

1. Among the following: Foreign Direct Investments, Foreign Institutional Investments, American Depository Receipts, Global Depository Receipts, which ones are categorized as Portfolio Investment in relation to “Sources of Foreign Exchange Reserves”?

  1. Foreign Direct Investments only
  2. American Depository Receipts only
  3. Global Depository Receipts only
  4. Foreign Institutional Investments, American Depository Receipts, Global Depository Receipts
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Answer: Option D. Foreign Institutional Investments, American Depository Receipts, Global Depository Receipts

2. What does the term “Paper Gold” refer to?

  1. The Special Drawing Rights (SDR) of the IMF
  2. A type of Physical Gold
  3. A Gold Bond
  4. US Dollar
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Answer: Option A. The Special Drawing Rights (SDR) of the IMF

3. In financial terminology, what do the terms Fixed to Floating and Floating to Floating refer to?

  1. Currency exchange rates
  2. Stock market trends
  3. Swaps
  4. Commodity pricing strategies
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Answer: Option C. Swaps

4. In which year did the RBI gain the authority to regulate the money, forex, government securities, and gold-related securities markets?

  1. 2006
  2. 2000
  3. 1995
  4. 2005
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Answer: Option A. 2006

5. If the Union Bank of India wants to utilize a State Bank of India account at Citibank in New York for transactions in dollars, this is considered a _ for Union Bank of India?

  1. Nostro account
  2. Vostro account
  3. Demand deposit
  4. Forex account
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Answer: Option A. Nostro account