Prelims Mantra (Practice Questions) (17/12/2025)
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Prelims Mantra (Practice Questions) (17/12/2025)
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Question 1 of 2
1. Question
With reference to depreciation of the Indian Rupee, consider the following statements:
1. Depreciation of the rupee can improve export competitiveness in the short run.
2. Rupee depreciation always leads to a reduction in the current account deficit.
3. RBI intervenes in the foreign exchange market mainly to smoothen volatility rather than to defend a fixed exchange rate.
Which of the statements given above are correct?
CorrectAnswer: B
Explanation:
A weaker rupee makes exports cheaper and more competitive.
Depreciation does not always reduce CAD due to inelastic imports (crude oil, gold) and time lag (J-curve effect).
RBI follows a managed float, intervening only to reduce excessive volatility.
IncorrectAnswer: B
Explanation:
A weaker rupee makes exports cheaper and more competitive.
Depreciation does not always reduce CAD due to inelastic imports (crude oil, gold) and time lag (J-curve effect).
RBI follows a managed float, intervening only to reduce excessive volatility.
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Question 2 of 2
2. Question
Consider the following statements:
1. Inhalable microplastics can penetrate deep into the human respiratory system due to their small size.
2. Inhalable microplastics are found only in outdoor air and are absent in indoor environments.
Which of the statements given above is/are correct?
CorrectAnswer: B
Explanation:
Due to their microscopic size (often PM₁₀ or smaller), inhalable microplastics can enter the lower respiratory tract.
Studies show higher concentrations indoors, mainly from synthetic textiles, carpets, and household dust.
IncorrectAnswer: B
Explanation:
Due to their microscopic size (often PM₁₀ or smaller), inhalable microplastics can enter the lower respiratory tract.
Studies show higher concentrations indoors, mainly from synthetic textiles, carpets, and household dust.
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