Multiple choice

Directions: Choose the correct option for the given question.Due to which reason India had to export Gold to Bank of England U.K. in 1991?

  1. India returned U.K. gold

  2. India returned gold taken as loan from U.K.

  3. To meet foreign exchange crisis

  4. For investments in British companies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In 1991, India faced a severe balance of payments crisis and had to pledge its gold reserves to the Bank of England to obtain foreign exchange. This was done to prevent a default on international obligations. Option C is correct. Options A and B incorrectly suggest the gold belonged to UK, and D is unrelated.

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