1.  The foreign exchange reserves in 1996-97 were approximately what percent of the average foreign exchange reserves over the period under review?

A. 95%
B. 110%
C. 115%
D. 125%
E. 140%

Answer: Option

Explanation:

Average foreign exchange reserves over the given period
= [1/8 x (2640 + 3720 + 2520 + 3360 + 3120 + 4320 + 5040 + 3120)] million US $

= 3480 million US $.

Foreign exchange reserves in 1996 - 1997 

= 4320 million US $.

Therefore Required percentage =(4320x 100)
3480
= 124.14% ~= 125%.