Forex Reserves of India and Forex Management

11. What is the term used to describe the action of buying or selling foreign currencies to influence the exchange rate?
a. Exchange rate arbitrage
b. Currency speculation
c. Forex hedging
d. Intervention in the foreign exchange market

12. Which exchange rate regime does India follow?
a. Floating exchange rate
b. Fixed exchange rate
c. Pegged exchange rate
d. Managed floating exchange rate

13. Who determines the exchange rate in India?
a. Reserve Bank of India (RBI)
b. Ministry of Finance
c. Securities and Exchange Board of India (SEBI)
d. Ministry of Commerce and Industry

14. What is the primary objective of exchange rate management in India?
a. Promote exports and discourage imports
b. Stabilize the value of the domestic currency
c. Attract foreign investment
d. Generate revenue for the government

15. What is the role of RBI in Forex Management?
a. Regulation of foreign exchange transactions
b. Determination of exchange rates
c. Monitoring capital flows
d. All of the above