Question

The foreign exchange reserves in $1997 - 98$ was how many times of that in $1994 - 95$?

A) $0.7$ times
B) $1.2$ times
C) $1.4$ times
D) $1.5$ times

Answer 1

Hint: In this question, we are given a graph showing the foreign exchange reserves of a country over different years. We have been asked how many times the foreign exchange reserves were in $1997 - 98$ of that in $1994 - 95$. For this, divide the foreign exchange reserves of $1997 - 98$ by the foreign exchange reserves in $1994 - 95$. Simplify the division and you will have your answer.

Complete step by step solution:
We are given a graph showing the foreign exchange reserves of a country over different years and we have been asked how many times the foreign exchange reserves were in $1997 - 98$ as compared to that in $1994 - 95$. It must be noted that on the x-axis years are shown and on y-axis, foreign exchange reserves are shown in millions US $\$ $.
As it is given that foreign exchange reserves in $1997 - 98$ were $\$ 5040$ million.
Foreign exchange reserves in $1994 - 95$ were $\$ 3360$ million.
To find the required ratio, we will divide the foreign exchange reserves in $1997 - 98$ by foreign exchange reserves in $1994 - 95$.
$ \Rightarrow \dfrac{{5040}}{{3360}} = 1.5$times.

$\therefore $ Our required answer is option D) $1.5$ times.

Note: How to know which quantity should be in numerator and which should be in denominator?
The quantity which has been ‘compared to’ should be in denominator and the quantity which is to be compared will be in numerator.
For example: In this case, foreign exchange reserves in $1997 - 98$ were ‘compared to’ the foreign exchange reserves in $1994 - 95$. Therefore, foreign exchange reserves of $1994 - 95$ were in denominator and that of $1997 - 98$ was in numerator.