Question : Which of the following institutions is responsible for managing the foreign exchange reserves of India?
Option 1: Reserve Bank of India (RBI)
Option 2: Securities and Exchange Board of India (SEBI)
Option 3: National Stock Exchange of India (NSE)
Option 4: None of the above
Correct Answer: Reserve Bank of India (RBI)
Solution : The correct answer is (a) Reserve Bank of India (RBI).
The Reserve Bank of India is responsible for managing the foreign exchange reserves of India. Foreign exchange reserves are the assets held by a country's central bank in various currencies, primarily to facilitate international transactions and maintain stability in the foreign exchange market. The RBI manages and regulates the flow of foreign exchange reserves, monitors exchange rates, and formulates policies to ensure the stability of the Indian rupee. The Securities and Exchange Board of India (SEBI) is the regulatory authority for the securities market, and the National Stock Exchange of India (NSE) is one of the major stock exchanges in India. However, neither SEBI nor NSE is responsible for managing foreign exchange reserves.
