![Forex reserves up by $3.8 bn to $601.3 bn as Foreign Currency Assets Rise Forex reserves up by $3.8 bn to $601.3 bn as Foreign Currency Assets Rise](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhK0yaZrmW36muNNviHgb_faUW_G9nrAVFZ9QLiq3ZLFzhDNh2l7HFfhBbiThx5qe2AKafyYuhUV51sSDuX-vZsXQWlqILX5ULpj1SQVfDFVJ9VLeV85hL8kKktmXBf3tfy-MfmyonS8aKgUGCi8j_jBGbbnFlnhpnZkaOLhPJS15RaOfRzuj2aj_KpVg/w320-h202-rw/Forex%20reserve%20currency.jpg)
- The main factor behind the rise in forex reserves was due to an increase in the Foreign Currency Assets (FCA) and the gold reserves.
- These foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.it is also expressed in dollar terms.
- Apart from that The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by USD 132 million to USD 18.438 billion.
- Gold reserves increased by USD 94 million to USD 40.917 billion.
- RBI would seek to keep its stash of foreign exchange to provide an adequate cushion through the current commodities super-cycle, record inflation in the West, and the Ukraine war.
- Foreign exchange reserves facilitate external trade and payment and promote orderly development and maintenance of the foreign exchange market in India.
Question:
Q.1 According to recent RBI data Forex reserves are up by _______ bn to reach a $601.3bn?a. $2.8bn
b. $3.8bn
c. $4.1bn
d. $5.2bn