Which of the following is NOT a component of India's foreign exchange reserves? MCQ with Answer and Explanation

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Which of the following is NOT a component of India's foreign exchange reserves?

A. Foreign currency assets

B. Foreign direct investment

C. SDRs

D. Gold

Answer: Option B

Solution (By JKSSB Mock Tests)

FDI is a capital flow, not a component of foreign exchange reserves.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a major component of India's foreign exchange reserves?

A. Only domestic currency

B. Only equity shares of foreign companies

C. Foreign currency assets, gold, SDRs and reserve position in IMF

D. Only gold

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Correct Answer: Option C

Explanation:
India's foreign exchange reserves consist of foreign currency assets, gold, Special Drawing Rights and the reserve tranche position in the IMF.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'One District One Product' initiative aims to promote:

A. single tax rate

B. uniform industrial policy

C. district-specific products and exports

D. uniform education

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Correct Answer: Option C

Explanation:
One District One Product promotes production of unique products in each district for economic development and exports.

This question belongs to: Economy GK Economy Set 1

Question #3

Fixed costs are costs that:

A. remain constant irrespective of output in the short run

B. are zero in the long run

C. vary directly with output

D. equal variable costs

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Correct Answer: Option A

Explanation:
Fixed costs do not change with the level of output in the short run.

This question belongs to: Economy GK Economy Set 1

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