UPSC Prelims 2005·GS1·economy·open economy

Consider the following statements: 1. During the year 2004, India’s foreign exchange reserves did not exceed the 125 billion U.S. dollar mark.

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  1. A1 only
  2. B2 onlyCorrect
  3. CBoth 1 and 2
  4. DNeither 1 nor 2

Explanation

Statement 1 is incorrect because Indias foreign exchange reserves actually crossed the 125 billion U.S. dollar mark in late 2004. By the end of December 2004, the reserves had reached approximately 131 billion U.S. dollars.

Since the provided answer key states that B is correct, it implies there was a second statement in the original question which is not listed here. In UPSC questions of this format, if statement 1 is false and the answer is B, it means statement 2 must be the only correct one. Based on historical data, statement 1 is definitely false because the 125 billion dollar threshold was surpassed during that year.

economy: Consider the following statements: 1. During the year 2004, India’s foreign exchange reserves did not exceed the 125 bil
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