External Sector MCQ — 2 Practice Questions with Answers

Practice 2 External Sector multiple-choice questions with detailed answers and explanations. Ideal for RAS/RPSC exam preparation.

2 Questions Indian Economy

Q1. What was the chief driver of the USD 9 billion jump in India's forex reserves to USD 697.12 billion reported in April 2026?

A Sharp rise in foreign portfolio inflows

B Higher SDR allocation by IMF

C Gain in the value of gold holdings

D Currency revaluation against the euro

Explanation

The RBI attributed the rise to gains in the value of gold holdings; gold is now a meaningful component of India's reserves alongside foreign currency assets.

Q2. Consider the following statements regarding India's textile and handicrafts exports for FY 2025-26 reported on April 22, 2026:\n1. Total exports rose 2.1 per cent year-on-year to ₹3,16,334.9 crore.\n2. Exports declined in over 120 destinations because of higher US reciprocal tariffs.\n3. UAE, Japan, Egypt and Sudan were among the standout high-growth destinations.\nWhich of the statements given above are correct?

A 1 and 2 only

B 2 and 3 only

C 1 and 3 only Correct

D 1, 2 and 3

Explanation

Statement 1 is correct: total exports grew 2.1 per cent to ₹3,16,334.9 crore. Statement 2 is incorrect: exports actually GREW in 120-plus destinations during April 2025 to February 2026, not declined. Statement 3 is correct: UAE (+22.3 per cent), Japan (+20.6 per cent), Egypt (+38.3 per cent) and Sudan (+205.6 per cent) all posted standout growth.

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Frequently Asked Questions

How many External Sector MCQ questions are available?

There are 2 External Sector practice MCQs available on Aspirant Academy, with detailed answers and explanations for each question.

Are answers and explanations provided for External Sector MCQs?

Yes, every External Sector question comes with the correct answer and a detailed explanation to help you understand the underlying concept.

How is External Sector relevant to the RAS/RPSC exam?

External Sector falls under the Indian Economy section of the RAS/RPSC syllabus. It is a frequently tested area and regular practice with these MCQs will strengthen your preparation.

Can I practice External Sector questions in Hindi?

Yes, Aspirant Academy offers bilingual support. You can practice External Sector MCQs in both English and Hindi, including questions, options, and explanations.

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External Sector MCQ — 2 Practice Questions with Answers

Practice Questions

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