CUET Preparation Today
Why there should be sufficient foreign exchange reserves kept within a country? |
To import products like petroleum To comply with mandated requirement of the World Bank To ensure political stability in the country All of the above |
To import products like petroleum |
The correct answer is option 1: To import products like petroleum Sufficient foreign exchange reserves are essential for a country to pay for its imports, especially crucial goods like petroleum. These reserves are also used to stabilize the currency, pay off international debt, and maintain confidence in the country's financial system. The reserves are not directly linked to compliance with World Bank mandates or ensuring political stability. |
