Consider the following statements 1 India rsquo s foreign exchange reserve has been steadily increas...........

Economic Affairs World Bank and IMF

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Consider the following statements

1.India’s foreign exchange reserve has been steadily increasing since the last decade.

2.India’s foreign exchange reserve also includes India’s position with International Monetary Fund (IMF).

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

2 only

India’s foreign exchange reserve has been steadily increasing since the last decade: This statement is not correct. While India's foreign exchange reserves have generally shown an increasing trend over the years, the term "steadily" may not accurately represent the fluctuations that can occur due to various economic factors. It is essential to consider specific timeframes for a more accurate assessment.

India’s foreign exchange reserve also includes India’s position with the International Monetary Fund (IMF): This statement is correct. India's foreign exchange reserves include various components, and one of them is the country's special drawing rights (SDRs) holdings and its reserve position with the IMF. These components contribute to the overall foreign exchange reserves.