UPSC Prelims Practice Questions — Rupee should not be allowed to hit ₹100 per dollar: RSS wing

Q1. In which year did India adopt a unified, market-determined single exchange rate for the rupee, replacing the dual-rate Liberalised Exchange Rate Management System (LERMS)?

  • A. 1991
  • B. 1993
  • C. 1997
  • D. 2000

Q2. As part of its 2026 measures to support the rupee, the RBI capped banks' Net Open Position (NOP) in foreign currency at which of the following limits per business day?

  • A. USD 50 million
  • B. USD 100 million
  • C. USD 500 million
  • D. USD 1 billion

Q3. In the context of rupee depreciation, the 'J-curve effect' is best described as which one of the following?

  • A. The trade balance initially worsens after depreciation and improves only later as export and import volumes adjust
  • B. Exports and imports rise in equal proportion, leaving the trade balance unchanged
  • C. Depreciation instantly widens the fiscal deficit before narrowing it
  • D. Forex reserves first rise and then fall following central-bank intervention

Q4. Consider the following as typical effects of a depreciating rupee. Which of the statements given above is/are NOT correct?

  1. A rise in the domestic cost of imported crude oil
  2. Improved price competitiveness of Indian exports
  3. An immediate reduction in the current account deficit
  4. Upward pressure on imported inflation
  • A. 3 only
  • B. 1 and 3 only
  • C. 2 only
  • D. 3 and 4 only

Q5. The following organisations are claimed to have been founded or co-founded by Dattopant Thengadi. Which one is NOT correctly attributed to him?

  1. Bharatiya Mazdoor Sangh (1955)
  2. Bharatiya Kisan Sangh (1979)
  3. Swadeshi Jagaran Manch (1991)
  4. Bharatiya Janata Party (1980)
  • A. 1 only
  • B. 4 only
  • C. 3 and 4 only
  • D. 2 and 4 only

Q6. Which one of the following Sangh Parivar organisations functions as the trade-union (labour) wing of the RSS?

  • A. Swadeshi Jagaran Manch
  • B. Bharatiya Mazdoor Sangh
  • C. Bharatiya Kisan Sangh
  • D. Akhil Bharatiya Vidyarthi Parishad

Q7. Who is the Chairman of the Sixteenth Finance Commission of India?

  • A. N. K. Singh
  • B. Arvind Panagariya
  • C. Ajay Narayan Jha
  • D. Soumya Kanti Ghosh

Q8. The Finance Commission of India is constituted under which one of the following provisions of the Constitution?

  • A. Article 263
  • B. Article 280
  • C. Article 275
  • D. Article 293

Q9. The market-driven fall of the rupee to record lows during 2026 under India's managed-float regime is most precisely termed:

  • A. Devaluation
  • B. Depreciation
  • C. Revaluation
  • D. Appreciation