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  9. Q3

TNPSC Group-I 2021 · Question 3 of 148

What are the recent trends in the global economy which has led to RBI 'sell buy' swap of USD/INR? (a) Financial markets worldwide facing intense selling pressures due to the spread of Covid-19 infections. (b) Slump in international crude prices. (c) Emerging market currencies experiencing upward pressure.

Economy - RBI

  1. A(a) only
  2. B(b) and (c) only
  3. C(a) and (b) onlyCorrect
  4. D(c) only

Answer: C. (a) and (b) only

Explanation

The RBI's 2020 sell-buy USD/INR swap was driven by Covid-19 selling pressures in financial markets and the slump in crude prices; emerging market currencies faced downward, not upward, pressure.

Source: TNPSC Group-I Prelims (held 3 Jan 2021) - official paper via examrace.com

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