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What is meant by official reserve …

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What is meant by official reserve transaction? Discuss their importance in balance of payments.

Posted by Ritesh Maheshwari 5 years, 9 months ago

CBSE > Class 12 > Economics

1 answers

Diksha Gord 5 years, 9 months ago

The overall balance which is finally reflected in the official reserves of account because RBI is the custodian of foreign exchange and all monetary transaction are routed through the RBIIf overall balance is negative it causes decreases in the offficial reserves of the account and if overall balance is positive so it causes inward flow of the foreigne exchange it means increases in the official reserves of the account.if any more doubt about that question so u can ask me okk and dont be shy okk dear

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