With reference to the concept of foreign exchange reserves, consider the following statements: 1. Foreign currency assets are the only component of a country’s Forex Reserves. 2. Special Drawing Rights (SDRs) and Reserve Tranche Position (RTP) with IMF are included in Forex Reserves. 3. Under the fixed currency regime regulated by the IMF, exchange rates were pegged to a basket of major world currencies. Which of the statements given above is/are correct? |ForumIAS

[A] 1 only

[B] 2 and 3 only

[C] 1 and 2 only

[D] 1, 2 and 3

Answer: B

Notes:

Explanation:

Forex Reserves include not only foreign currency assets but also gold reserves, SDRs, and RTP with the IMF.
SDRs and RTP are explicitly mentioned as part of a country’s Forex Reserves.
The fixed currency regime involved pegging exchange rates to a basket of major world currencies, as regulated by the IMF.

Source- TMH Indian Economy by Ramesh Singh

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