Comprehension
The central bank doesn‘t disclose its foreign exchange management strategy, but it was evident in the last few years that the rupee was not allowed to appreciate despite healthy inflows, resulting in a rapid build-up of foreign exchange. From a low of $275 billion in September of 2013, when rupee came under severe pressure due to so-called 'taper tantrums‘ by the US Federal Reserve, India now has record foreign exchange reserves of [1] billion, as on 21 August — a 95 per cent rise over seven years. Despite the Covid-19 pandemic, the foreign exchange kitty swelled by $62 billion since March. In this seven-year period, rupee ended the year with an appreciation against the dollar only once — in 2017. This year, the rupee is so far down by 2.04 per cent against the dollar. The latest RBI statement suggested that it is not uncomfortable with the appreciation in rupee, confirming the speculation among currency analysts that a departure was made in the exchange management policy.
The Reserve Bank of India (RBI) said that it will conduct liquidity operations worth Rs 20,000 crore in two tranches through sale and purchase of government securities (G-Secs). The two open market operations (OMOs) of Rs 10,000 crore each will be conducted on September 10 and 17, the central bank said in an official release. This is now the second such announcement in as many weeks. Last week, RBI had announced sale and purchase of G Secs worth Rs 20,000 crore, in two tranches, slated to be conducted on August 27 and September 3. In another move, RBI announced the infusion of Rs 1 lakh crore in mid September through long-term repo operations (LTROs) at floating rates, or the prevailing repo rate. Moreover, the central bank also gave an option to lenders who have earlier availed funds through LTROs, to reverse their transactions before maturity.
The Reserve Bank of India (RBI) said that it will conduct liquidity operations worth Rs 20,000 crore in two tranches through sale and purchase of government securities (G-Secs). The two open market operations (OMOs) of Rs 10,000 crore each will be conducted on September 10 and 17, the central bank said in an official release. This is now the second such announcement in as many weeks. Last week, RBI had announced sale and purchase of G Secs worth Rs 20,000 crore, in two tranches, slated to be conducted on August 27 and September 3. In another move, RBI announced the infusion of Rs 1 lakh crore in mid September through long-term repo operations (LTROs) at floating rates, or the prevailing repo rate. Moreover, the central bank also gave an option to lenders who have earlier availed funds through LTROs, to reverse their transactions before maturity.
Question: 1
Which of the following has been replaced by [1] in the above passage ?
Which of the following has been replaced by [1] in the above passage ?
Updated On: Jul 15, 2026
- $ 537
- $ 498
- $ 502
- $ 756
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The Correct Option is A
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The correct option is (A) :$ 537.
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The passage says India's reserves rose from a low of $275 billion in September 2013 to a new record "as on 21 August", a 95 percent rise over seven years. We can check which of the four figures actually represents a 95 percent increase over $275 billion.
- $537 billion: A 95 percent rise over $275 billion means multiplying $275 billion by 1.95, which gives $536.25 billion, close enough to $537 billion given the passage's rounded 95 percent figure. This matches the maths in the passage.
- $498 billion: $498 billion over $275 billion works out to roughly an 81 percent rise, well short of the 95 percent stated in the passage, so this figure is too low.
- $502 billion: This is about an 82.5 percent rise over $275 billion, again well below the stated 95 percent, so it does not fit.
- $756 billion: This would be close to a 175 percent rise over $275 billion, far higher than the passage's 95 percent, so this figure overshoots by a wide margin.
Only $537 billion lines up with a 95 percent rise over the $275 billion base mentioned in the passage.
So, the correct answer is $537 billion.
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Question: 2
Which of the following economic policies have been recently used by the RBI to boost the economy during the current Pandemic situation ?
Which of the following economic policies have been recently used by the RBI to boost the economy during the current Pandemic situation ?
Updated On: Jul 15, 2026
- FOREX SWAP
- LTROs (Long Term Repo Operations)
- OMOs (Open Market Operations)
- All of the above.
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The Correct Option is D
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The correct option is (D) :All of the above.
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The passage describes three separate RBI moves during the pandemic: a forex swap, long term repo operations, and open market operations. Let's check that each one is genuinely mentioned as a tool used during this period.
- FOREX SWAP: The passage refers to a foreign exchange swap facility offered by the RBI as one of the liquidity tools used during this period, so this option is directly supported by the text.
- LTROs (Long Term Repo Operations): The passage explicitly mentions the RBI infusing Rs 1 lakh crore through long term repo operations at floating rates linked to the repo rate. This is confirmed in the text.
- OMOs (Open Market Operations): The passage describes the RBI conducting liquidity operations worth Rs 20,000 crore through sale and purchase of government securities, which is exactly what open market operations are. This is also confirmed.
- All of the above: Since the forex swap, the LTROs and the OMOs are all mentioned as measures the RBI actually used, none of the first three options can be picked in isolation without leaving out the other two.
Because all three individual tools, the forex swap, the LTROs and the OMOs, are described in the passage as measures actually deployed by the RBI, no single one of them alone captures the full picture.
So, the correct answer is All of the above.
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Question: 3
Which of the following statements relate to the Long Term Repo Operations as measure to support the economy in corona pandemic situations ?
Which of the following statements relate to the Long Term Repo Operations as measure to support the economy in corona pandemic situations ?
Updated On: Jul 15, 2026
- It is a measure that is expected to bring down short-term rates and also boost investment in corporate bonds.
- It would encourage banks to undertake maturity transformation smoothly and seamlessly so as to augment credit flows to productive sectors.
- It will enhance liquidity in the banking system by Rs 1 trillion.
- All of the above.
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The Correct Option is D
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The correct option is (D) :All of the above.
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This question lists three separate claims about what Long Term Repo Operations (LTROs) are meant to achieve, then asks whether all three are correct together. Let's examine each claim.
- It brings down short-term rates and boosts investment in corporate bonds: LTROs let banks borrow long term funds from the RBI at the repo rate, which is cheaper than short-term market borrowing. Banks can then use this cheaper money to buy corporate bonds and commercial paper, which pulls down short-term rates in those markets. This is one of the stated aims of LTROs.
- It encourages banks to undertake maturity transformation to boost credit flow: Banks typically borrow short and lend long, which is called maturity transformation. LTROs give banks stable, long term funding, which makes it easier and safer for them to keep lending to productive sectors over longer periods. This is also a genuine aim of the scheme.
- It enhances liquidity in the banking system by Rs 1 trillion: Rs 1 lakh crore is the same amount as Rs 1 trillion, and the RBI announced exactly this sum for infusion through LTROs. This claim is a straightforward restating of the announced amount, and it is accurate.
- All of the above: Since each of the three claims independently checks out against what LTROs were designed and announced to do, none of them can be excluded.
All three claims, on rates, on maturity transformation, and on the Rs 1 trillion liquidity infusion, hold up when checked individually, so together they describe the full picture of what LTROs were meant to do.
So, the correct answer is All of the above.
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Question: 4
Which of the following will be used as a platform for core banking solutions to implement the LTRO ?
Which of the following will be used as a platform for core banking solutions to implement the LTRO ?
Updated On: Jul 15, 2026
- E-cartel
- E-kuber
- E-CBS
- E-RBICBS
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The Correct Option is B
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The correct option is (B) :E-kuber.
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This question asks which platform is used for core banking solutions to carry out the Long Term Repo Operations. Let's look at each named option.
- E-cartel: This is not a real RBI system; the name does not correspond to any known core banking platform used by the central bank.
- E-kuber: E-Kuber is the RBI's actual core banking solution, launched in 2012, through which the central bank runs its real time gross settlement system, government securities transactions, and repo related operations including LTROs. This is the genuine platform.
- E-CBS: This looks like a generic shorthand for "core banking solution" itself rather than the name of the specific system the RBI operates, so it is not the correct term.
- E-RBICBS: This is not the RBI's actual system name either; it appears to be a made up combination of "RBI" and "core banking solution" rather than the real platform name.
Among the four choices, only E-Kuber is the RBI's actual core banking platform, the one it uses to conduct settlement and repo operations such as the LTROs.
So, the correct answer is E-kuber.
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Question: 5
What is the notified amount of sum offered by the RBI under measures of the Foreign Exchange Swap ?
What is the notified amount of sum offered by the RBI under measures of the Foreign Exchange Swap ?
Updated On: Jul 15, 2026
- $ 5 billion
- $ 16.71 billion
- $ 16.21 billion
- $ 5.02 billion
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The Correct Option is A
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The correct option is (A) :$ 5 billion.
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This question asks for the notified amount the RBI offered under its dollar-rupee forex swap facility. Let's weigh the four figures given.
- $5 billion: This was the size the RBI notified for its sell-buy dollar-rupee swap auction, offered to provide dollar liquidity to banks during a period of stress. This is the announced, notified figure.
- $16.71 billion: A figure of this size looks like it belongs to the total bids received in an oversubscribed auction round rather than the amount actually notified by the RBI at the outset.
- $16.21 billion: This is close to the figure above and reads the same way, more consistent with total demand or bids received than with the initial notified amount.
- $5.02 billion: This is close to the real notified figure but not the round number the RBI actually announced, so it does not match.
The RBI's announcement named a clean, round $5 billion as the size of the swap window, even though actual demand for dollars from banks may have been reported separately.
So, the correct answer is $5 billion.
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Top CLAT Questions
- In the realm of contemporary literature, the interplay between character and setting is a nuanced dance that shapes the narrative’s essence. The setting, often described with painstaking detail, becomes more than a backdrop; it becomes a character, influencing the plot and character development.
Consider, for instance, the barren expanse of the desert in Jhumpa Lahiri’s The Namesake. The arid landscape mirrors the sense of isolation felt by the protagonist, Gogol, as he navigates his identity crisis in a foreign land. The relentless sun and vast sands are not mere descriptions; they are the silent witnesses to his inner turmoil.
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The question of justice for the poor is, however, an altogether different challenge. No country in the world has been able to secure justice for the poor. Most of the jails of the richest countries are filled with the poorest. The “masses” are more often victims of the criminal justice system than of crime. In India as well, jails are almost exclusively filled with the poor. The civil justice system is hardly accessible to them. They are often victimised by lawyers, touts and court staff. They are docket-excluded, a new type of untouchability. The language and the logic—and the colonial and feudal culture—of the judicial system are alien to them. It rarely takes cognisance of their needs and interests.
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[Extracted, with edits, from “Justice and the Two Ideas of India”, by G. Mohan Gopal, Frontline] - Everything she wanted was here, at Carignano, in Kasauli. Here, on the ridge of the mountain, in this quiet house. It was the place, and the time of life, that she had wanted and prepared for all her life-as she realized on the first day at Carignano, with a great, cool flowering of relief - and at last she had it. She wanted no one and nothing else. Whatever else came, or happened here, would be an unwelcome intrusion and distraction. This she tried to convey to the plodding postman with a cold and piercing stare from the height of the ridge onto his honest bull back. Unfortunately, he did not look up at her on the hilltop but stared stolidly down at the dust piling onto his shoes as he plodded on. A bullock-man, an oafish ox, she thought bitterly. She stepped backwards into the garden and the wind suddenly billowed up and threw the pine branches about as though to curtain her. She was grey, tall and thin and her silk sari made a sweeping, shivering sound and she fancied she could merge with the pine trees and be mistaken for one. To be a tree, no more and no less, was all she was prepared to undertake.
What pleased and satisfied her so, here at Carignano, was its barrenness. This was the chief virtue of all Kasauli of course-its starkness. It had rocks, it had pines, it had light and air. In every direction there was a sweeping view - to the north, of the mountains, to the south, of the plains. Occasionally an eagle swam through this clear unobstructed mass of light and air, that was all. And Carignano, her home on the ridge, had no more than that. Why should it? The sun shone on its white walls. Its windows were open the ones facing north opened on to the blue waves of the Himalayas flowing out and up to the line of ice and snow sketched upon the sky, while those that faced south looked down the plunging cliff to the plain stretching out, flat and sere to the blurred horizon.
Yes, there were some apricot trees close to the house. There were clumps of iris that had finished blooming. There was the kitchen with a wing of smoke lifting out of its chimney and a stack of wood outside its door. But these were incidental, almost unimportant.
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The 19th century ushered in a new era of literary giants. Jane Austen’s novels, such as Pride and Prejudice and Sense and Sensibility, provide incisive social commentary through the lens of wit and romance. Austen’s heroines, like Elizabeth Bennet and Elinor Dashwood, remain beloved literary figures known for their intelligence and resilience. The Romantic era brought forth poets like William Wordsworth and Samuel Taylor Coleridge, who celebrated * 8 UG the beauty of nature and the emotional intensity of the individual. Wordsworth’s ‘‘I Wandered Lonely as a Cloud’’ and Coleridge’s ‘‘The Rime of the Ancient Mariner’’ are testament to the power of the written words to evoke profound emotions and imagery. Moving towards 20th century, English literature continued to evolve. Virginia Woolf’s ground-breaking novel Mrs. Dalloway explored the inner thoughts and lives of its characters with a modernist narrative style. Dystopian visions, as seen in George Orwell’s Nineteen Eighty-Four provided stark warnings about the dangers of totalitarianism and the erosion of individual freedom.
Today, English literature is a global phenomenon, transcending borders and languages. Indian authors like Arundhati Roy, with her novel The God of Small Things, have won prestigious international literary awards. The book not only explores intricate family dynamics but also delves into the broader socio-political landscape of India. In summary, English literature is a testament to the enduring power of storytelling and the written word. It encompasses an array of authors, themes, and styles that continue to captivate and inspire readers across the world. - On the evening of the 10th, General Dyer arrived at Amritsar, and the Deputy-Commissioner handed over the civil power to him. He issued a proclamation by word of mouth that no meetings should be held. Two days later, after there had been no sort of riot, nor murder, General Dyer heard that a meeting was to be held at the Jallianwala Bagh. He proceeded there with about fifty troops, half British, half Indian, and a certain number of Ghurkas, armed with their kukris. The Jallianwala Bagh is an open space, half a mile square, which has one entry wide enough for three persons. The troops got in and lined up on a mound of debris. The walls, seven feet high, and the surrounding houses enclosed the people. There were, too, three alleys through which the people might have been able to pass. Within thirty seconds of the troops getting in, General Dyer gave orders to fire, and the crowd of people, estimated at anything from 5,000 to 20,000, who were sitting on the ground peacefully listening to the mob oratory, were fired on. The result of the troops’ fire into the mass of people we do not know. But we do know that Dyer’s own estimate of the casualties resulting from ten minutes continual individual firing, was 400 to 500 killed and 1,500 wounded. The people were not able to escape. They were people who had not offered any violence and who had not been warned. These people were shot down. After ten minutes, the ammunition was exhausted and the troops marched off, and they left 1,500 wounded there. There were men lying there for two days, dying of thirst, eating the ground, bleeding to death and nobody to look after them. Those who lived nearby came and carried away some of the wounded from the heap of dead and dying, but the unfortunate country people died there miserably of their wounds. This is what is done in 1919 in British India…
Centuries hence you will find Indian children brought up to this spot, just as they visit now the Cawnpore Well, and you can imagine the feelings of these Indians for generations over this terrible business.
[Col. Wedgwood, MP, speaking in the British Parliament, 22 December 1919]
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