Economics · Foreign Exchange Reserves
Which of the following transactions would lead to an increase in India's foreign exchange reserves, assuming no RBI intervention sterilization effects?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increase in outward remittances under LRS
- 2Repayment of sovereign external debt
- 3Foreign Portfolio Investment inflow into Indian equity markets✓
- 4Indian firm acquiring a company abroad
Correct answer
Foreign Portfolio Investment inflow into Indian equity markets
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