The correct answer is c, d and a only. Explanation & Key Takeaways: • Increase in the Oil Prices swept the Foreign Currency Reserves of the country. • This led to the reduction of foreign exchange reserves. Hence Statement a is correct. • The crisis was caused by currency overvaluation, the current account deficit, and investor confidence played a significant role in the sharp exchange rate depreciation. • It leads to an increase in the fiscal deficit. Hence statement c is correct. • India was forced by circumstances to borrow against the security of the Gold Reserves. • That led to the sale of gold from reserves. Hence statement d is also correct. Important Notes: • The economic crisis was primarily due to the large and growing fiscal imbalances over the 1980s.