Question:

India emerged as .............. largest holder of the U.S. Government Securities at the end of 2016.

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U.S. Treasury Securities are a popular investment for countries to park their foreign exchange reserves due to their high safety and liquidity.
Updated On: Aug 14, 2025
  • Twenty eighth
  • Twenty fourth
  • Twelfth
  • Fifteenth
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The Correct Option is C

Solution and Explanation

U.S. Government Securities are debt instruments issued by the U.S. Treasury to finance government spending.
Foreign countries often invest in these securities as a way to store reserves in a safe and liquid form.
By the end of 2016, India had significantly increased its holdings, ranking twelfth among all foreign holders of U.S. Government Securities.
This ranking indicated India’s growing foreign exchange reserves and its confidence in the stability of U.S. Treasury instruments.
Option (a) Twenty eighth and option (b) Twenty fourth reflect older rankings from earlier years, before India’s reserves expanded.
Option (d) Fifteenth underestimates India’s position by the end of 2016.
India’s high ranking placed it among major holders such as China, Japan, and several oil-exporting nations.
These holdings are part of India’s strategy to maintain financial stability, manage currency reserves, and ensure liquidity for external obligations.
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