Consider the following statements regarding the RBI's Forex Swap Mechanism:1.Forex swaps inject rupee liquidity into the banking system while absorbing foreign currency.2.A forex swap is an agreement to exchange one currency for another with a fixed commitment to swap back at a future date.Which of the statements given above is/are correct?
UPSC · current affairs quiz
Quiz · RBI Forex Swap Mechanism and Bank Liquidity
Two Prelims-style questions on this topic from 17 October 2026. Choose an option to check yourself, then open the full note or today’s full quiz.
Which of the following components of the Balance of Payments records international transactions in financial assets and liabilities?