Prelims 2013 · archive
EasyWhich one of the following groups of items is included in India’s foreign-exchange reserves?
Answer & explanation
Answer: (b) Foreign-currency assets, gold holdings of the RBI and SDRs
India's foreign-exchange reserves are made up of foreign currency assets, gold, SDRs and the reserve tranche position in the IMF. Loans, whether from foreign countries or the World Bank, are liabilities and are not a component of the reserves. So the only correct group is foreign-currency assets, gold and SDRs.
- ✓ (b) Foreign currency assets, gold and SDRs are all listed components of the reserves. The fourth component is the reserve tranche position in the IMF.
- ✗ (a) FCA and SDRs are components, but loans from foreign countries are borrowings. They are not a component of the reserves.
- ✗ (c) Loans from the World Bank are not a reserve component. Gold, a listed component, is left out.
- ✗ (d) Gold and FCA are components, but World Bank loans are not. SDRs are also left out.
Remember · India's forex reserves have four parts: foreign currency assets, gold, SDRs and the reserve tranche position in the IMF. Loans are not one of the components.
Sources
- MoSPI, Statistical Year Book India – Chapter 40: Exchange, Coinage and Currency ↗ “India's foreign exchange reserves comprise foreign currency assets (FCA), gold, special drawing rights (SDRs) and reserve tranche position (RTP) in the International Monetary Fund (IMF).”
- RBI press release: 30th Half Yearly Report on Management of Foreign Exchange Reserves ↗ “Foreign Exchange Reserves (i+ii+iii+iv) 406.1 i. Foreign Currency Assets (FCA) 380.7 ii. Gold 21.4 iii. Special Drawing Rights (SDR) 1.5 iv. Reserve Tranche Position (RTP) 2.5”
Question: UPSC Civil Services (Preliminary) 2013, General Studies paper. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·