2013 GS Paper I, all questions
UPSC Prelims 2013 · GS Paper I
Question 83: Economy and Social Development
Which one of the following groups of items is included in India's foreign-exchange reserves?
aForeign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
bForeign-currency assets, gold holdings of the RBI and SDRs
cForeign-currency assets, loans from the World Bank and SDRs
dForeign-currency assets, gold holdings of the RBI and loans from the World Bank
AnswerUPSC’s answer is (b).
India's foreign-exchange reserves comprise foreign-currency assets (the bulk of them), the RBI's gold holdings, Special Drawing Rights (SDRs) held with the IMF, and India's reserve tranche position in the IMF. Loans from foreign countries or from the World Bank are liabilities, not owned reserves, so they do not count. The option with foreign-currency assets, gold and SDRs is therefore correct.
Why each option is right or wrong
- (a) Wrong. Loans from foreign countries are not reserves, and gold is left out.
- (b) Correct. Foreign-currency assets, gold and SDRs are reserves.
- (c) Wrong. Loans from the World Bank are not reserves, and gold is left out.
- (d) Wrong. World Bank loans are not reserves, and SDRs are left out.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2013, General Studies Paper I, Series A. The paper on upsc.gov.in.