Foreign-exchange reserves of India
Okay, kiddo. You know how sometimes you save some of your pocket money in a piggy bank, so you can use it later? That's kind of like what India does with their money too. But instead of a piggy bank, they have something called "foreign-exchange reserves."
Foreign-exchange reserves are like a big savings account where a country can keep different types of money, like dollars, euros or yen. India keeps this money so that they can use it later, if they need it. It’s like a backup plan, just in case something goes wrong.
India's foreign-exchange reserves are really important because they help the country buy things from other countries, like oil or wheat. They also help Indian companies to pay for imports or investments in other countries. Sometimes, India may even have to pay back money that it borrowed from other countries, and the foreign-exchange reserves can help in that situation too.
So, think of it like a big stash of money that India saves for a rainy day or to buy things from other countries. Does that make sense, kiddo?
Foreign-exchange reserves are like a big savings account where a country can keep different types of money, like dollars, euros or yen. India keeps this money so that they can use it later, if they need it. It’s like a backup plan, just in case something goes wrong.
India's foreign-exchange reserves are really important because they help the country buy things from other countries, like oil or wheat. They also help Indian companies to pay for imports or investments in other countries. Sometimes, India may even have to pay back money that it borrowed from other countries, and the foreign-exchange reserves can help in that situation too.
So, think of it like a big stash of money that India saves for a rainy day or to buy things from other countries. Does that make sense, kiddo?