Mains Answer Writing - 18 Jul, 2026

GS3

Economy

15 marks

The U.S. Federal Reserve is often regarded as the world's most influential central bank. Examine the factors that enable the Federal Reserve to shape global monetary conditions. Discuss its implications for emerging economies like India.

Attempt Challenge on App See Model Answer

Tips for your answer

Explain why the Fed matters globally. Focus on the U.S. dollar's reserve currency status, global capital markets and dollar-denominated trade, not merely interest rate changes.
Remember value addition like the IMF (global reserve currency composition), U.S. Treasury securities, Foreign Portfolio Investments (FPI), RBI's inflation-targeting framework, and local currency settlement initiatives.
Avoid implying that the Fed directly controls other central banks. Instead, explain that its decisions create powerful global spillover effects that constrain the policy choices of emerging economies like India.

9.5/15

Topper’s Answer Sheet

With detailed evaluation

More Challenges

View All

GS2
International Relations
10 Oct, 2026
Recent restrictions on H-1B visas by the United States have raised concerns for Indian professionals. Discuss their implications for India and suggest measures to address these challenges.
View Challenge
GS3
Environment & Ecology
Yesterday
The Living Planet Report highlights a sharp decline in wildlife populations worldwide. What does this decline actually indicate? Discuss the major causes of biodiversity loss and suggest conservation measures.
View Challenge
GS3
Economy
8 Oct, 2026
How does a repo rate hike help control inflation? Discuss its impact on the Indian economy.
View Challenge