Question Description
Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer?.

Solutions for Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the passage carefully and answer the questions given beside.It is quite timely that the Interdepartmental Group of the RBI has released a report on the internationalization of the rupee. The talk of making currencies international has gathered momentum ever since the US put an embargo on dealing with Russia. By blocking all payments through the SWIFT system to Russia, the message sent was this can happen to any country. This has led countries to seriously discuss the issue of de-dollarisation, with the internationalization of local currency as part of the package. If a group of countries decides to conduct business with one another in their currencies, then an optimal solution can be achieved. But the issue is that there will always be surpluses with some countries and deficits for others. Those with a deficit are better off using such arrangements while those with surpluses may not know how to use the currencies as they are not acceptable outside this perimeter. Therefore, while the regulation on foreigners or Indians holding rupees outside India can be liberalized, getting countries to accept the same is the challenge. Currently, one is not allowed to carry more than 25,000 outside the country. An argument put forward often is that this should be withdrawn because if there are takers for the same outside, it saves dollars for the country.There are some interesting facts that need to be considered when one looks at the internationalization of currencies. The first is that today around 60 percent of the world’s forex reserves are held in dollars,20 percent in euros, and 55.5 percent in yen and pounds each. Hence 90 percent of the holdings are in these four currencies. While China has tried its best to make inroads, the share of its currency is a mere 2.6 percent; slightly higher than the Canadian and the Australian dollar at 2.4 percent and 2 percent, respectively. Therefore, the size of the economy does not matter today. China, despite being the second largest economy, is unable to find greater global acceptance of its currency. Second, the structure of exports throws light on another aspect of global currencies. If a country exports a lot of goods, then there can be an incentive for countries to accept the currency as a mode of payment. World Bank data for 2021 shows that the euro region accounted for 26 percent of total global exports of $28.16 trillion. The US accounts for a share of only 9 percent, but the dollar is favored globally when it comes to holding forex reserves. China has the second-highest share in exports of 13.6 percent, but accounts for a much lower share in forex reserves. Japan follows next with 3.2 percent, Singapore 2.8 percent, South Korea 2.7 percent, Hong Kong 2.7 percent and India with 2.4 percent. Canada, Singapore and Russia had shares of around 2 percent each while Australia had a share of just 1.2 percent. The Australian dollar, however, is a preferred currency by the IMF when it comes to forex reserve holdings. India comes 9th in this ranking, and can hence pitch for inclusion as an international currency.Q.According to the passage, why has the talk of making currencies international gained momentum recently?a)Due to Chinas efforts to promote its currencyb)As a result of the Interdepartmental Group of the RBIs reportc)Because of the US embargo on Russia and discussions on de-dollarizationd)Because countries are increasingly holding their surpluses in foreign currenciesCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CLAT tests.