question_answer

      Which statement is correct regarding FDI?

I. The success of foreign exchange management by RBI can be seen in the fact that from US 5.8 billion in March 1991 (enough to meet the import requirements for three weeks) the country's reserves have grown to around US  352 billion by December 2015.

II. It is pertinent to note here that some of the increase in the reserve is attributed to the weakness of the dollar in the post-Iraq war scenario.

A) Only I                          

B) Only II

C) Both I & II

D) Neither I & II

Correct Answer: C

Solution :

The success of foreign exchange management by RBI can be seen in the fact that from US 5.8 billion in March 1991 (enough to meet the import requirements for three weeks) the country's reserves have grown to around US  352 billion by December 2015. It is pertinent to note here that some of the increase in the reserve is attributed to the weakness of the dollar in the post-Iraq war scenario.