Which one of the following groups of items is included in India’s foreign–exchange reserves?

The correct answer is B. India's foreign-exchange reserves are external assets held by the RBI that can be used to meet external obligations and intervene in the forex market. The stock has three main components: foreign-currency assets (the largest share), gold held by the RBI, and Special Drawing Rights allocated by the IMF. The reserve tranche position with the IMF is also shown in RBI's own presentation, but it does not change the answer here.

Why the others fail:

• A includes loans from other countries. Borrowings are liabilities, not reserves. A loan raises the forex stock only temporarily, and the debt must be repaid.
• C includes World Bank loans for the same reason. Loans from multilateral lenders are external debt.
• D pairs foreign-currency assets with vague 'holdings of the RBI', which is not a reserve category, and then adds World Bank loans, which are debt.

Concept: reserves act as a buffer against balance-of-payments shocks and currency volatility. The RBI's management of reserves under the Foreign Exchange Management Act, 1999 links directly to the Mains theme of external sector stability and rupee exchange-rate policy.

Trap: candidates pick A or C because borrowed money visibly raises the forex stock. Reserves are assets and loans are liabilities, even when both appear in the same reporting period.