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Topic Exchange Rate
Asked 3 times across 2 UPSC exams over 24 years (1998–2022), peaking in 2022.
Key insights
- Most tested in CSE — 2 of 3 PYQs
- Most asked in 2022
- Recurs across 3 years (1998–2022)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CSE 1998 → EPFO 2015
How the concept evolved
Long-running — most appearances (2 of 3) predate 2016, and it still returns.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CSE2022
With reference to the Indian economy, consider the following statements
- An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee
- An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness
- An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER
Which of the above statements are correct?
- A 1 and 2 only
- B 2 and 3 only
- C 1 and 3 only ✓
- D 1, 2 and 3
✓ Correct answer: (C)
Economy › External Sector & Trade
EPFO2015
Statement (
- : Foreign investment may affect a country's export performance. Statement (
- Inflow of foreign exchange may cause appreciation of local currency leading to a rise in the price of export commodities
- A Both Statement (I) and Statement (II) are individually true and Statement (II) is the correct explanation of Statement (I) ✓
- B Both Statement (I) and Statement (II) are individually true but Statement (II) is not the correct explanation of Statement (I)
- C Statement (I) is true but Statement (II) is false
- D Statement (I) is false but Statement (II) is true
✓ Correct answer: (A)
Economy › External Sector & Trade
CSE1998
Consider the following statements: The price of any currency in international market is decided by the
- World Bank
- Demand for goods/services provided by the country concerned
- Stability of the government of the concerned country
- Economic potential of the country in question
of these statements: Codes:
- A 1, 2, 3 and 4 are correct
- B 2 and 3 are correct ✓
- C 3 and 4 are correct
- D 1 and 4 are correct
✓ Correct answer: (B)
Economy › External Sector & Trade
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