- Foreign exchange reserves increase due to net inflows of foreign currency. - Major sources of inflows include exports, remittances, FDI, FPI, and external commercial borrowings. - Factors listed (reforms, interest rate differentials, FII inflows into stock market) are all drivers of increased capital inflows into India.
India's foreign exchange reserves have continuously increased since 2000-01 because of
Asked in WBCS Main Paper 5 2023 · Topic: Foreign Exchange Market and Exchange Rate Determination (India's Exchange Rate Policy and Management of Foreign Exchange Reserves)
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Answer: D. All of the above
Read the notes: Foreign Exchange Market and Exchange Rate Determination →
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