A
A financial market where currencies are traded for immediate delivery.
B
A central bank facility to absorb liquidity without providing collateral securities.
C
A specialized weekly storage monitoring mechanism for major reservoirs.
D
A penal window where scheduled commercial banks borrow overnight funds against excess SLR.
Correct answer: (a) A financial market where currencies are traded for immediate delivery.
Explanation
Option A is correct because the spot exchange market is defined as the financial market where currencies are traded for immediate delivery. The other options refer to completely different central bank liquidity tools or water resource monitoring mechanisms.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.