Adequacy of foreign exchange reserves is a multifaceted concept, evaluated using various ratios that relate reserves to potential drains such as imports, external debt, and domestic money supply.
Adequacy of foreign exchange reserves of a country is captured by which of the following indicators? Reserves to import ratio Reserves to external debt ratio Reserves to GDP ratio Reserves to monetary aggregates Select the correct answer using the code below:
Asked in UPSC CAPF 2023 · Topic: Balance of Payments (BoP) (Management of Capital Flows and Foreign Exchange Reserves)
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