Multiple choice

Foreign Exchange Reserves of India are kept in the custody of

  1. Reserve Bank of India

  2. National Stock Exchange

  3. Bombay Stock Exchange

  4. Foreign Ministry of India

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A Correct answer
Explanation

The Reserve Bank of India (RBI) is India's central bank and is responsible for managing the country's foreign exchange reserves. These reserves include foreign currency assets, gold, and Special Drawing Rights (SDR) maintained to ensure stability in international payments and monetary policy. Stock exchanges (BSE, NSE) are trading platforms, while the Foreign Ministry handles diplomatic relations.