CLAT November 6 Daily Practice Questions with Answers

CLAT 2025 November 6 Daily Practice Questions with Answers: For the CLAT 2024 exam, the candidates should take these daily practice questions with answers for November 6. Topics covered the English language and current affairs, including general knowledge, quantitative techniques, and legal and logical reasoning. This sample practice will effectively help improve your time management, analytical thinking, and reading skills. Consistently working and analyzing the questions can boost their preparation for the upcoming exams.

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CLAT 2025 November 6 Daily Practice Questions with Answers: Logical Reasoning

Candidates can check out the CLAT 2025 November 6  Daily Practice Questions with Answers from Logical Reasoning section:

Read the following passage and answer the questions

Passage: The depreciation of an economy’s currency is not a matter of concern in itself. The decline in value against major currencies has to be viewed within a set of macroeconomic factors. The recent depreciation of the Indian rupee is a case in point. The rupee has been depreciating for a long time. What are of concern now are the rate at which the depreciation is occurring and the underlying factors causing the change. The Russia-Ukraine war has disrupted supply chains causing commodity prices to rise, leading to a worldwide hardening of inflationary trends. This, in turn, has caused major central banks to raise interest rates, forcing investors back to the safe haven of the US dollar. For India, these headwinds from the global economy have caused several problems. The rise in international prices, especially of crude oil, has led to a higher import bill and, hence, a greater demand for dollars. Higher interest rates in developed country markets have caused a significant outflow of portfolio investments from India, aggravating the already climbing demand for dollars from a rising import bill. By May 2022, foreign institutional investors had pulled out Rs. 1.50 lakh crore from Indian markets.

In the face of these pressures, the rupee, left to itself, would decline in value as the rupee-price of a dollar would increase substantially. One way  the  Reserve  Bank  of India could stem the tide would be to sell off dollars in the market to ease the supply situation. However, this would mean that while the value of the rupee could be contained, the nation’s foreign exchange kitty would start to erode further. The  RBI  has  been doing exactly that. The challenge before the RBI is this: how much to let the rupee depreciate and how much to intervene to prop it up? Too much depreciation would raise domestic inflation rates as the rupee-price of imports, especially oil, would raise costs of production. It could trigger a rise in policy-controlled interest rates while closely monitoring inflationary expectations. The biggest challenge is to navigate unpredictable international economic shocks in the near future. The Indian economy’s health is not exactly at its best. Exports may not be able to take advantage of a falling rupee since international demand is expected to stagnate. India’s growth and employment situations are yet to stabilise to what they were about a decade ago. The RBI has difficult choices: controlling inflation versus stimulating growth and stabilising the rupee without severely diminishing the economy’s foreign exchange kitty.

Question 1: Which of the following is the author most likely to agree with?

(A)   It is a major cause for concern if an economy’s currency is depreciating.

(B)  Currency depreciation is not a reason for worry in itself, but if macroeconomic factors are not good, there may be a cause for concern.

(C) The fact that the Indian rupee is witnessing a decline in value against major currencies is very worrisome.

(D)  A central bank must always do everything in its power to stem the slightest depreciation of an economy’s currency.

Answer: (B) 

Question 2: Which of the following, if true, would most weaken the author’s arguments?

(A) The Indian economy has been affected by global inflationary trends and the increase of interest rates in developed country markets.

(B) Since developed country markets have increased their interest rates, global investors have pulled their investments out of other economies, and routed them to such developed country markets.

(C) As the demand for US dollars increases, it is likely the rupee-price of a dollar would increase substantially.

(D) The Indian economy and currency are highly protected and have been insulated from the effects of global inflationary trends and the increase of interest rates in developed country markets.

Answer: (D) 

Question 3: Based on the author’s arguments, which of the following must necessarily be true?

(A) The continuing depreciation of the Indian rupee at its current rate, coupled with worldwide inflationary trends, would result in immense political instability in India, and consequently, in all of South Asia.

(B) If nothing else is done, the rise of interest rates in developed country markets, coupled with hardening of inflationary trends across the world, will result in a fall in the value of the rupee against the dollar.

(C) If inflationary trends continue to harden across the world, and if interest rates in developed country markets continue to rise, portfolio investors will increase their investments in India, and this will have a positive impact on India’s foreign exchange reserves.

(D)  If nothing else is done, the rise of interest rates in developed country markets, coupled with hardening of inflationary trends across the world, will result in a rise in the value of the rupee against the dollar.

Answer: (B) 

Question 4: Based on the author’s arguments, which of the following, if true, would reduce the decline in value of the rupee?

(A)  Appointing a new Governor for the RBI who has a better sense of how to control inflationary trends.

(B)  A steep increase in commodity prices and the continued disruption of supply chains.

(C)   A reduction in worldwide inflationary trends and the reduction of interest rates in developed country markets.

(D)  The RBI buys as many dollars as possible from the market.

Answer: (C) 

Question 5: Which of the following, if true, would most strengthen the author’s arguments for why Indian exports may not be able to take advantage of a falling rupee?

(A) Economies across the world are witnessing a slowdown, and in such economies, demand for imports decreases substantially.

(B) Economies across the world are booming, and there is an increasing demand for Indian exports.

(C) A reduction in the volume of exports would be more than offset by the increased value of dollars that Indian exporters would earn.

(D) Countries across the world have managed to find ways to insulate themselves from the effects of the Russia-Ukraine war and will need a lot of Indian imports to sustain their new growth models.

Answer: (A) 

Question 6: Which of the following is the author most likely to agree with?

(A) The RBI must not focus solely on preventing the depreciation of the rupee, as that may result in negative impacts on other aspects of the economy.

(B) The RBI must focus solely on preventing the depreciation of the rupee at all costs, since it is by far the most important indicator of the health of the Indian economy.

(C) Periodic inflationary trends are normal in any economy, and the RBI need not worry about the inflationary effects in the Indian economy caused by the depreciation of the rupee.

(D) The RBI need not do anything to reduce the rate of depreciation of the rupee, since the depreciation of an economy’s currency is not a matter of concern in itself.

Answer: (A) 

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