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 direct investment

B. SDRs

C. Foreign currency assets

D. Gold

Answer: Option A

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

Zero-based budgeting requires that:

A. every expenditure item is justified from zero each year

B. previous year's budget is the base for all allocations

C. deficit is zero

D. only capital expenditure is budgeted

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Correct Answer: Option A

Explanation:
Zero-based budgeting requires all expenditures to be justified from zero each budget period.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'systemically important financial institution' is one whose failure could:

A. reduce inflation

B. trigger a systemic crisis

C. have no effect on the economy

D. benefit other banks

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Correct Answer: Option B

Explanation:
A systemically important institution is too big or interconnected to fail without causing systemic risk.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of development economics, the 'Lewis Model' focuses on:

A. Only the role of foreign aid

B. The role of surplus labour in agriculture and its transfer to industry

C. The importance of balanced growth across all sectors equally

D. Only technological progress in agriculture

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Correct Answer: Option B

Explanation:
The Lewis dual-economy model emphasises the existence of surplus labour in the traditional agricultural sector that can be transferred to the modern industrial sector at a constant real wage.

This question belongs to: Economy GK Economy Set 1

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