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Explain official reserve assets and its major components.
Answer: Official reserve assets are those financial assets which can be employed as international means of payments. At present, official reserve assets have: (I) gold, (ii) foreign exchanges, (iii) special drawing rights (SDRs), and (iv) reserve positions along with the IMF. Foreign exchanges are by far the most significant official reserves.
Brown has been in business for some years and has kept her drawings slightly below the level of profits each year. You are her accountant, and she has passed you the following list
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