Multiple choice

Directions: Answer the given question based on the following table which gives the total forex reserve of India in million dollars: Total forex reserve = Foreign currencies + Gold + SDRs | | | | || |---|---|---|---|---| | YEARS | 1999 | 2000 | 2001 | 2002 | | Foreign currencies | $18344 | $22367 | $25975 | $33470 | | Gold | $3621 | $2894 | $3270 | $3795 | | SDRs | $148 | $262 | $96 | $442 | If \$1 = INR 30 in 1999 and \$1 = INR 40 in 2001, what is the ratio of total forex reserve in 1999 to that in 2001 (in INR)?

  1. 100 : 158

  2. 100 : 165

  3. 100 : 177

  4. 100 : 181

  5. Data inadequate
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

1999 total = 18344 + 3621 + 148 = 22113 million USD. 2001 total = 25975 + 3270 + 96 = 29341 million USD. In INR: 1999 = 22113 * 30 = 663390. 2001 = 29341 * 40 = 1173640. Ratio = 663390 / 1173640 = 66339 / 117364 = 100 / 176.9. Closest is 100:177.

AI explanation

Find the total forex reserves by adding the components for each year. The total for 1999 is 18344 + 3621 + 148 = 22113 million dollars, and the total for 2001 is 25975 + 3270 + 96 = 29341 million dollars. Convert these to INR using the given exchange rates to get 663390 million INR for 1999 and 1173640 million INR for 2001. The ratio of 663390 to 1173640 simplifies to approximately 100 to 177.

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