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Contemporary India – II

Class 10 · Geography

Ch 7 · Lifelines of National Economy

Real UPSC Prelims questions from 2016–2026, linked to this book. Try each one first, then open the answer. 2026 answers follow UPSC's provisional answer key.

Prelims 2019 · Q65

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?

1.The foreign currency earnings of India's IT sector
2.Increasing the government expenditure
3.Remittances from Indians abroad

Select the correct answer using the code given below.

(a)1 only
(b)1 and 3 only
(c)2 only
(d)1, 2 and 3

Show answer

UPSC's answer: (b)

NCERT answers it: Class 10 Contemporary India – II, Ch 7 (Lifelines of National Economy); Class 12 Introductory Macroeconomics, Ch 6 (Open Economy Macroeconomics).

How to solve it with NCERT: Class 10 Contemporary India II, ch 7: India earns large foreign exchange from IT exports. Class 12 Macroeconomics, ch 6: remittances ('transfers') are inflows in the balance of payments. Both bring in dollars, which protects the rupee. More government spending does not. Answer (b).

Hindi version: UPSC's official question paper (2019), question 65 ↗

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