Daily Current Affairs Quiz for UPSC : 29 Dec 2025

Consider the following statements regarding Special Drawing Rights (SDRs):

1. SDRs are an international reserve asset created by the IMF and are not a currency.
2. The value of SDR is determined daily based on a basket of five major currencies.
3. SDRs can be directly used by member countries to pay for imports in international trade.
4. India’s foreign exchange reserves include SDR holdings allocated by the IMF.

Which of the above statements are correct?

Consider the following statements regarding Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER):

1. NEER is the weighted average of bilateral nominal exchange rates of the domestic currency relative to a basket of foreign currencies, with weights based on trade shares.
2. NEER is not adjusted for inflation differences across countries.
3. REER adjusts NEER by relative inflation (price indices) between domestic and foreign economies.
4. A rising REER indicates that domestic goods are becoming more competitive internationally.

Which of the above statements  is /are correct?

Arrange the following in logical sequence of the virtuous cycle:

1. Higher investment
2. Higher productivity
3. Higher growth and jobs
4. Higher savings and demand

The term “Period of the Peg” in the context of India’s exchange rate policy refers to:

1. The phase when the Indian rupee was pegged to the pound sterling under the Bretton Woods system.
2. The phase when the rupee was pegged to the US dollar after the collapse of Bretton Woods.
3. A regime where the Reserve Bank of India actively intervened to maintain a fixed par value of the rupee.
4. The current regime of market-determined exchange rates.

Which of the above is / are correct?