Welcome to Dhyeya IAS Best Coaching for UPSC, IAS,Civil Services, State PSC/PCS Exam

Daily-mcqs 11 Sep 2025

Current Affairs MCQs for UPSC & State PSC Exams 11 Sep 2025

Current Affairs MCQs for UPSC & State PSC Exams

Q1:

With reference to the recent changes in India’s foreign exchange reserve strategy, consider the following statements:

1.   India reduced its holdings in US Treasury Bills due to geopolitical concerns about potential asset freezes.

2.   Despite decreasing its exposure to US assets, India’s overall foreign exchange reserves continued to rise.

3.   The RBI has shifted gold holdings from foreign vaults to domestic reserves as part of its diversification strategy.

4.   India currently ranks among the top five global investors in US Treasury securities.

Which of the above statements is/are correct?

A: 1, 2 and 3 only

B: 2 and 4 only

C: 1 and 3 only

D: 1, 2, 3 and 4

Show

Answer: A

Explanation:

Statement 1 is correct:

India’s reduction in US T-bill holdings is partly driven by concerns over geopolitical risks, especially after the US and its allies froze Russia’s reserves. Though rare, such moves indicate potential vulnerabilities of holding large reserves in a single jurisdiction.

Statement 2 is correct:

Even as holdings in US Treasury Bills declined (from $247.2B in Sep 2024 to $227B in June 2025), India’s total forex reserves rose to $694.23 billion by August 2025, showing that the RBI is diversifying rather than shrinking reserves.

Statement 3 is correct:

RBI increased domestic gold holdings, moving a portion of gold back from foreign storage to India. Gold held abroad fell from 387.26 tonnes to 348.62 tonnes, while domestic holdings rose to 511.99 tonnes, signaling a strategic shift toward greater physical control and security.

Statement 4 is incorrect:

India ranks as the 10th-largest investor in US T-bills, not in the top five. Larger holders include countries like Japan, China, the UK, and Luxembourg.

Q2:

Recently, Sébastien Lecornu was appointed the Prime Minister of France amid political instability. Which of the following statements regarding the France’s political structure is/are correct?

1.   The Prime Minister of France is directly elected by the people through a two-round system.

2.   The President of France can dismiss the Prime Minister at any time.

3.   France follows a semi-presidential system where both the President and Prime Minister exercise executive powers.

4.   A vote of no confidence in the French Parliament can lead to the resignation of the Prime Minister.

Select the correct answer using the code below:

A: 1 and 2 only

B: 2,3 and 4 only

C: 1, 3 and 4 only

D: 2 and 4 only

Show

Answer: B

Explanation:

Statement 1 is Incorrect – The Prime Minister of France is not directly elected. The President appoints the Prime Minister, usually from the majority party or coalition in the National Assembly. The “two-round system” is used for electing the President, not the PM.

Statement 2 is Correct – The President can dismiss the Prime Minister at any time, especially if political circumstances demand it.

Statement 3is Correct – France follows a semi-presidential system, where executive powers are shared between the President and Prime Minister. The President handles foreign affairs and defense, while the PM handles domestic governance, subject to the Parliament.

Statement 4 is Correct – The National Assembly can pass a vote of no confidence, forcing the Prime Minister (and his government) to resign.

Q3:

Consider the following statements regarding India’s foreign exchange reserves:

1.   Foreign Currency Assets (FCA) forms the largest component of the reserves of India.

2.   SDRs are valued based on a basket of six major international currencies.

3.   Forex reserves help stabilize a country’s exchange rate and meet external obligations.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 2 and 3 only

C: 1 and 3 only

D: 1, 2 and 3

Show

Answer: C

Explanation:

Statement 1 is correct: FCA is the largest component of India’s forex reserves.

Statement 2 is incorrect: The SDR basket includes five currencies:

Euro

Chinese Yuan (RMB)

Japanese Yen

Pound Sterling

Statement 3 is correct: Reserves are used to stabilize the currency, support the balance of payments, and build confidence in the economy.

Q4:

Consider the following statements about India‑Nepal relations:

1.   India–Nepal Treaty of Peace and Friendship allows nationals of the two countries to reside and own property in each other’s territories with equal rights.

2.   Nepal’s currency is officially pegged to the Indian rupee under this treaty.

3.   India is Nepal’s largest trade partner.

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

Show

Answer: C

Explanation:

· Statement 1 is correct: The 1950 Treaty allows nationals of either country certain reciprocal privileges such as residence, ownership of property, trade & commerce.

· Statement 2 is incorrect: Nepal’s currency is not pegged to the Indian rupee.

· Statement 3 is correct: India is Nepal’s largest trade partner, largest foreign investment source, major transit country and plays substantial economic and people‑to‑people role

Q5:

With reference to Offshore Aquifers, consider the following statements:

1.   Offshore aquifers are freshwater reserves located beneath the seabed.

2.   These aquifers are formed mainly due to undersea volcanic activity and geothermal processes.

3.   Offshore aquifers are considered potential future sources of drinking water, especially for coastal regions facing water stress.

4.   India has already mapped significant offshore aquifers along its eastern coastline.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 1, 3 and 4 only

D: 2, 3 and 4 only

Show

Answer: B

Explanation:

Statement 1 is correct:

Offshore aquifers are freshwater-bearing geological formations found under the seabed, often at shallow to moderate depths. These aquifers were formed thousands of years ago, especially during times when sea levels were lower (e.g., during the last ice age).

Statement 2 is incorrect:

They are not formed primarily by volcanic or geothermal activity. Instead, they are remnants of ancient terrestrial freshwater aquifers that became submerged due to rising sea levels.

Statement 3 is correct:

Given the growing freshwater scarcity in coastal regions, offshore aquifers are being studied as potential alternative sources of drinking water. Technologies for tapping them are still being developed.

Statement 4 is incorrect:

While India has conducted some preliminary exploration of offshore resources, it has not officially mapped or confirmed large offshore aquifers yet. Most significant research has occurred in countries like Australia, the USA, and the Netherlands.