SEO MCQ Question Page

Which statement best explains Foreign exchange reserves?

Practice this MCQ with options, instant answer checking, explanation, exam-wise filters, next/previous navigation and shareable result image.

Question ID #27250 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 7 Medium

Correct Answer: A. External reserve assets held by the central bank
Foreign exchange reserves: External reserve assets held by the central bank

Question: Which statement best explains Foreign exchange reserves?

A. External reserve assets held by the central bank

B. Tax collected through transactions where burden may be shifted to another person

C. GDP measured at current prices

D. Fiscal deficit minus interest payments

Correct Answer: A. External reserve assets held by the central bankForeign exchange reserves: External reserve assets held by the central bank

Which statement best explains Foreign exchange reserves? - MCQ Explanation

This question is useful for exam preparation because it provides direct multiple-choice practice with options, answer checking and explanation.

Correct answer: A. External reserve assets held by the central bank