DAY – 4 Insta 75 Days Revision Plan-2024: Topic – ECONOMY, Subject-wise Test 12, 13, 25 (Revision) Textbook-wise Test 1, 2, 3 (Revision) and July 2023 CA

INSTA 75 Days REVISION PLAN 2024

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• Question 1 of 30 1. Question 1 points With reference to genome sequencing, consider the following statements: It refers to the process of deciphering the order of base pairs to decode the genetic fingerprint. Genome sequencing is used to evaluate rare disorders including cystic fibrosis and thalassemia. The Human Genome Project released the latest version of the complete human genome in 2023. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: C Explanation: The human genome is the entire set of deoxyribonucleic acid (DNA) residing in the nucleus of every cell of each human body. It carries the complete genetic information responsible for the development and functioning of the organism. The DNA consists of a double-stranded molecule built up by four bases – adenine (A), cytosine (C), guanine (G) and thymine (T). Statement 1 is correct: The process of deciphering the order of base pairs, to decode the genetic fingerprint of a human is called genome sequencing. Statement 2 is correct: Genome sequencing has been used to evaluate rare disorders, preconditions for disorders, even cancer from the viewpoint of genetics, rather than diseases of certain organs. Nearly 10,000 diseases — including cystic fibrosis and thalassemia — are known to be the result of a single gene malfunctioning. Statement 3 is correct: The Human Genome Project released the latest version of the complete human genome in 2023, with a 0.3% error margin. Source: Science & Technology Trend: scientific research of Human Genome Approach: Factual/knowledge based question Incorrect Answer: C Explanation: The human genome is the entire set of deoxyribonucleic acid (DNA) residing in the nucleus of every cell of each human body. It carries the complete genetic information responsible for the development and functioning of the organism. The DNA consists of a double-stranded molecule built up by four bases – adenine (A), cytosine (C), guanine (G) and thymine (T). Statement 1 is correct: The process of deciphering the order of base pairs, to decode the genetic fingerprint of a human is called genome sequencing. Statement 2 is correct: Genome sequencing has been used to evaluate rare disorders, preconditions for disorders, even cancer from the viewpoint of genetics, rather than diseases of certain organs. Nearly 10,000 diseases — including cystic fibrosis and thalassemia — are known to be the result of a single gene malfunctioning. Statement 3 is correct: The Human Genome Project released the latest version of the complete human genome in 2023, with a 0.3% error margin. Source: Science & Technology Trend: scientific research of Human Genome Approach: Factual/knowledge based question

#### 1. Question

With reference to genome sequencing, consider the following statements:

• It refers to the process of deciphering the order of base pairs to decode the genetic fingerprint.

• Genome sequencing is used to evaluate rare disorders including cystic fibrosis and thalassemia.

• The Human Genome Project released the latest version of the complete human genome in 2023.

How many of the statements given above are correct?

• (a) Only one

• (b) Only two

• (c) All three

Answer: C

Explanation:

The human genome is the entire set of deoxyribonucleic acid (DNA) residing in the nucleus of every cell of each human body. It carries the complete genetic information responsible for the development and functioning of the organism.

The DNA consists of a double-stranded molecule built up by four bases – adenine (A), cytosine (C), guanine (G) and thymine (T).

Statement 1 is correct: The process of deciphering the order of base pairs, to decode the genetic fingerprint of a human is called genome sequencing.

Statement 2 is correct: Genome sequencing has been used to evaluate rare disorders, preconditions for disorders, even cancer from the viewpoint of genetics, rather than diseases of certain organs.

Nearly 10,000 diseases — including cystic fibrosis and thalassemia — are known to be the result of a single gene malfunctioning.

Statement 3 is correct: The Human Genome Project released the latest version of the complete human genome in 2023, with a 0.3% error margin.

Trend: scientific research of Human Genome

Approach: Factual/knowledge based question

Answer: C

Explanation:

The DNA consists of a double-stranded molecule built up by four bases – adenine (A), cytosine (C), guanine (G) and thymine (T).

Statement 1 is correct: The process of deciphering the order of base pairs, to decode the genetic fingerprint of a human is called genome sequencing.

Nearly 10,000 diseases — including cystic fibrosis and thalassemia — are known to be the result of a single gene malfunctioning.

Statement 3 is correct: The Human Genome Project released the latest version of the complete human genome in 2023, with a 0.3% error margin.

Trend: scientific research of Human Genome

Approach: Factual/knowledge based question

• Question 2 of 30 2. Question 1 points Consider the following statements: Statement-I: The sunspots are relatively cooler than the rest of the Sun surface because they form in areas where there are minimal magnetic fields. Statement-II: The magnetic field lines near sunspots cause an explosion of energy called solar flare which in turn is accompanied by a coronal mass ejection. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-l is incorrect but Statement-II is correct Correct Answer: D Explanation: Sunspots are areas that appear dark on the surface of the Sun. They appear dark because they are cooler than other parts of the Sun’s surface. Statement I is not correct: The sunspots are relatively cool because they form at areas where magnetic fields are particularly strong. These magnetic fields are so strong that they keep some of the heat within the Sun from reaching the surface. Statement II is correct: The magnetic field lines near sunspots often tangle, cross, and reorganize. This can cause a sudden explosion of energy called a solar flare. Solar flares release a lot of radiation into space. Solar flares are sometimes accompanied by a coronal mass ejection (CME for short). CMEs are huge bubbles of radiation and particles from the Sun. They explode into space at very high speed when the Sun’s magnetic field lines suddenly reorganize. When charged particles from a CME reach areas near Earth, they can trigger intense lights in the sky, called auroras. Source: Science and Technology Trend: Aditya L1 mission is News Approach: Factual/knowledge based question Incorrect Answer: D Explanation: Sunspots are areas that appear dark on the surface of the Sun. They appear dark because they are cooler than other parts of the Sun’s surface. Statement I is not correct: The sunspots are relatively cool because they form at areas where magnetic fields are particularly strong. These magnetic fields are so strong that they keep some of the heat within the Sun from reaching the surface. Statement II is correct: The magnetic field lines near sunspots often tangle, cross, and reorganize. This can cause a sudden explosion of energy called a solar flare. Solar flares release a lot of radiation into space. Solar flares are sometimes accompanied by a coronal mass ejection (CME for short). CMEs are huge bubbles of radiation and particles from the Sun. They explode into space at very high speed when the Sun’s magnetic field lines suddenly reorganize. When charged particles from a CME reach areas near Earth, they can trigger intense lights in the sky, called auroras. Source: Science and Technology Trend: Aditya L1 mission is News Approach: Factual/knowledge based question

#### 2. Question

Consider the following statements:

Statement-I:

The sunspots are relatively cooler than the rest of the Sun surface because they form in areas where there are minimal magnetic fields.

Statement-II:

The magnetic field lines near sunspots cause an explosion of energy called solar flare which in turn is accompanied by a coronal mass ejection.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• (c) Statement-I is correct but Statement-II is incorrect

• (d) Statement-l is incorrect but Statement-II is correct

Answer: D

Explanation:

Sunspots are areas that appear dark on the surface of the Sun. They appear dark because they are cooler than other parts of the Sun’s surface.

Statement I is not correct: The sunspots are relatively cool because they form at areas where magnetic fields are particularly strong.

These magnetic fields are so strong that they keep some of the heat within the Sun from reaching the surface.

Statement II is correct: The magnetic field lines near sunspots often tangle, cross, and reorganize. This can cause a sudden explosion of energy called a solar flare. Solar flares release a lot of radiation into space.

Solar flares are sometimes accompanied by a coronal mass ejection (CME for short). CMEs are huge bubbles of radiation and particles from the Sun. They explode into space at very high speed when the Sun’s magnetic field lines suddenly reorganize.

When charged particles from a CME reach areas near Earth, they can trigger intense lights in the sky, called auroras.

Trend: Aditya L1 mission is News

Approach: Factual/knowledge based question

Answer: D

Explanation:

Sunspots are areas that appear dark on the surface of the Sun. They appear dark because they are cooler than other parts of the Sun’s surface.

Statement I is not correct: The sunspots are relatively cool because they form at areas where magnetic fields are particularly strong.

These magnetic fields are so strong that they keep some of the heat within the Sun from reaching the surface.

When charged particles from a CME reach areas near Earth, they can trigger intense lights in the sky, called auroras.

Trend: Aditya L1 mission is News

Approach: Factual/knowledge based question

• Question 3 of 30 3. Question 1 points Consider the following pairs: Places recently mentioned in the: News- Associated Locations Khartoum City- Sudan Khazan Land- Oman Orkney Islands- Japan City of Jenin- Egypt How many of the pairs given above are correctly matched? (a) Only one (b) Only two (c) Only three (d) All four Correct Answer: A Explanation: Pair 1 is correctly matched: Khartoum is a city and an executive capital of Sudan, just south of the confluence of the Blue and White Nile rivers. It has bridge connections with its sister towns, Khartoum North and Omdurman, with which it forms Sudan’s largest conurbation. Pair 2 is not correctly matched: Khazans are coastal wetlands of Goa. They were reclaimed from mangrove forests (in the pre-Christian Era) by an intricate system of dykes, sluice gates and canals and put to multiple productive uses such as agriculture, aquaculture and salt panning. They are low-lying, saline water-logged areas. Pair 3 is not correctly matched: Orkney Islands is an archipelago in Scotland’s Northern Isle, comprising of approximately 70 islands. Orkney is located off the north coast of Great Britain, approximately ten miles north of the coast of Caithness. It is separated from the mainland by a seaway known as Pentland Firth. Pair 4 is not correctly matched: Jenin is a city in the State of Palestine, in the West Bank. The city serves as the administrative centre of the Jenin Governorate of Palestine and is a major centre for the surrounding towns. Source: Current Affairs Trend: Places in News with Global importance Approach: Factual/knowledge based question Incorrect Answer: A Explanation: Pair 1 is correctly matched: Khartoum is a city and an executive capital of Sudan, just south of the confluence of the Blue and White Nile rivers. It has bridge connections with its sister towns, Khartoum North and Omdurman, with which it forms Sudan’s largest conurbation. Pair 2 is not correctly matched: Khazans are coastal wetlands of Goa. They were reclaimed from mangrove forests (in the pre-Christian Era) by an intricate system of dykes, sluice gates and canals and put to multiple productive uses such as agriculture, aquaculture and salt panning. They are low-lying, saline water-logged areas. Pair 3 is not correctly matched: Orkney Islands is an archipelago in Scotland’s Northern Isle, comprising of approximately 70 islands. Orkney is located off the north coast of Great Britain, approximately ten miles north of the coast of Caithness. It is separated from the mainland by a seaway known as Pentland Firth. Pair 4 is not correctly matched: Jenin is a city in the State of Palestine, in the West Bank. The city serves as the administrative centre of the Jenin Governorate of Palestine and is a major centre for the surrounding towns. Source: Current Affairs Trend: Places in News with Global importance Approach: Factual/knowledge based question

#### 3. Question

Consider the following pairs:

Places recently mentioned in the: News- Associated Locations

• Khartoum City- Sudan

• Khazan Land- Oman

• Orkney Islands- Japan

• City of Jenin- Egypt

How many of the pairs given above are correctly matched?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Answer: A

Explanation:

Pair 1 is correctly matched: Khartoum is a city and an executive capital of Sudan, just south of the confluence of the Blue and White Nile rivers. It has bridge connections with its sister towns, Khartoum North and Omdurman, with which it forms Sudan’s largest conurbation.

Pair 2 is not correctly matched: Khazans are coastal wetlands of Goa. They were reclaimed from mangrove forests (in the pre-Christian Era) by an intricate system of dykes, sluice gates and canals and put to multiple productive uses such as agriculture, aquaculture and salt panning. They are low-lying, saline water-logged areas.

Pair 3 is not correctly matched: Orkney Islands is an archipelago in Scotland’s Northern Isle, comprising of approximately 70 islands.

Orkney is located off the north coast of Great Britain, approximately ten miles north of the coast of Caithness. It is separated from the mainland by a seaway known as Pentland Firth.

Pair 4 is not correctly matched: Jenin is a city in the State of Palestine, in the West Bank. The city serves as the administrative centre of the Jenin Governorate of Palestine and is a major centre for the surrounding towns.

Trend: Places in News with Global importance

Approach: Factual/knowledge based question

Answer: A

Explanation:

Pair 3 is not correctly matched: Orkney Islands is an archipelago in Scotland’s Northern Isle, comprising of approximately 70 islands.

Orkney is located off the north coast of Great Britain, approximately ten miles north of the coast of Caithness. It is separated from the mainland by a seaway known as Pentland Firth.

Trend: Places in News with Global importance

Approach: Factual/knowledge based question

• Question 4 of 30 4. Question 1 points With reference to the archaeological site Lothal, consider the following statements: It is located along the Bhogava River near the Gulf of Khambat. It was the only port-town of the Indus Valley Civilisation. It was not a metropolis with fixed upper or lower town distinctions. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: B Explanation: Statement 1 is correct: The archaeological remains of the Harappa port-town of Lothal is located along the Bhogava river, a tributary of Sabarmati, in the Gulf of Khambat. Statement 2 is correct: The excavated site of Lothal is the only port-town of the Indus Valley Civilisation. A metropolis with an upper and a lower town had in on its northern side a basin with vertical wall, inlet and outlet channels which has been identified as a tidal dockyard. Statement 3 is not correct: Within the quadrangular fortified layout, Lothal has two primary zones – the upper and the lower town. The citadel or the upper town is located in the south eastern corner and is demarcated by platforms of mud-brick of 4 meters in height instead of a fortification wall. The remains of the lower town suggest that the area had a bead-making factory. Source: Ancient History Trend: Harrapan Civilization Approach: Statement 3 can be eliminated as the use of term “was not” indicates an artificial addition to make the statement incorrect. Also distinction in the town, citadel etc are prominent features of Harrapan Civilization. Incorrect Answer: B Explanation: Statement 1 is correct: The archaeological remains of the Harappa port-town of Lothal is located along the Bhogava river, a tributary of Sabarmati, in the Gulf of Khambat. Statement 2 is correct: The excavated site of Lothal is the only port-town of the Indus Valley Civilisation. A metropolis with an upper and a lower town had in on its northern side a basin with vertical wall, inlet and outlet channels which has been identified as a tidal dockyard. Statement 3 is not correct: Within the quadrangular fortified layout, Lothal has two primary zones – the upper and the lower town. The citadel or the upper town is located in the south eastern corner and is demarcated by platforms of mud-brick of 4 meters in height instead of a fortification wall. The remains of the lower town suggest that the area had a bead-making factory. Source: Ancient History Trend: Harrapan Civilization Approach: Statement 3 can be eliminated as the use of term “was not” indicates an artificial addition to make the statement incorrect. Also distinction in the town, citadel etc are prominent features of Harrapan Civilization.

#### 4. Question

With reference to the archaeological site Lothal, consider the following statements:

• It is located along the Bhogava River near the Gulf of Khambat.

• It was the only port-town of the Indus Valley Civilisation.

• It was not a metropolis with fixed upper or lower town distinctions.

How many of the statements given above are correct?

• (a) Only one

• (b) Only two

• (c) All three

Answer: B

Explanation:

Statement 1 is correct: The archaeological remains of the Harappa port-town of Lothal is located along the Bhogava river, a tributary of Sabarmati, in the Gulf of Khambat.

Statement 2 is correct: The excavated site of Lothal is the only port-town of the Indus Valley Civilisation. A metropolis with an upper and a lower town had in on its northern side a basin with vertical wall, inlet and outlet channels which has been identified as a tidal dockyard.

Statement 3 is not correct: Within the quadrangular fortified layout, Lothal has two primary zones – the upper and the lower town. The citadel or the upper town is located in the south eastern corner and is demarcated by platforms of mud-brick of 4 meters in height instead of a fortification wall.

The remains of the lower town suggest that the area had a bead-making factory.

Trend: Harrapan Civilization

Approach: Statement 3 can be eliminated as the use of term “was not” indicates an artificial addition to make the statement incorrect. Also distinction in the town, citadel etc are prominent features of Harrapan Civilization.

Answer: B

Explanation:

Statement 1 is correct: The archaeological remains of the Harappa port-town of Lothal is located along the Bhogava river, a tributary of Sabarmati, in the Gulf of Khambat.

The remains of the lower town suggest that the area had a bead-making factory.

Trend: Harrapan Civilization

• Question 5 of 30 5. Question 1 points Consider the following statement: It is a European mission operated by the European Space Agency with contributions from the National Aeronautics and Space Administration. It aims to investigate the mysteries of dark matter and dark energy. This above-described Mission is- (a) The MOXIE Mission (b) The IMAGE Mission (c) The Euclid Mission (d) The Jason-3 Mission Correct Answer: C Explanation: Option (c) is correct: The new images from the Euclid mission include a cluster of thousands of distant galaxies, demonstrating the spacecraft’s unique abilities. The Euclid mission investigates the mysteries of dark matter and dark energy, the observatory is led by ESA (European Space Agency) with NASA contributions. NASA has established a U.S.-based Euclid science data center, and NASA-funded science teams will join other Euclid scientists in studying dark energy, galaxy evolution, and dark matter. The agency’s Nancy Grace Roman mission will also study dark energy – in ways that are complementary to Euclid. Euclid differs from targeted observatories like NASA’s James Webb Space Telescope that focus on a smaller area of the sky at any one time but typically offer higher-resolution images. Wide-field observatories like Euclid can observe large sections of the sky much faster than targeted telescopes. In addition, Euclid has high resolution compared to previous survey missions, which means it will be able to see more galaxies in each image than previous telescopes. Source: Current Affairs Trend: Space exploration missions in News Approach: Factual/knowledge based question Incorrect Answer: C Explanation: Option (c) is correct: The new images from the Euclid mission include a cluster of thousands of distant galaxies, demonstrating the spacecraft’s unique abilities. The Euclid mission investigates the mysteries of dark matter and dark energy, the observatory is led by ESA (European Space Agency) with NASA contributions. NASA has established a U.S.-based Euclid science data center, and NASA-funded science teams will join other Euclid scientists in studying dark energy, galaxy evolution, and dark matter. The agency’s Nancy Grace Roman mission will also study dark energy – in ways that are complementary to Euclid. Euclid differs from targeted observatories like NASA’s James Webb Space Telescope that focus on a smaller area of the sky at any one time but typically offer higher-resolution images. Wide-field observatories like Euclid can observe large sections of the sky much faster than targeted telescopes. In addition, Euclid has high resolution compared to previous survey missions, which means it will be able to see more galaxies in each image than previous telescopes. Source: Current Affairs Trend: Space exploration missions in News Approach: Factual/knowledge based question

#### 5. Question

Consider the following statement:

It is a European mission operated by the European Space Agency with contributions from the National Aeronautics and Space Administration. It aims to investigate the mysteries of dark matter and dark energy.

This above-described Mission is-

• (a) The MOXIE Mission

• (b) The IMAGE Mission

• (c) The Euclid Mission

• (d) The Jason-3 Mission

Answer: C

Explanation:

Option (c) is correct: The new images from the Euclid mission include a cluster of thousands of distant galaxies, demonstrating the spacecraft’s unique abilities.

• The Euclid mission investigates the mysteries of dark matter and dark energy, the observatory is led by ESA (European Space Agency) with NASA contributions.

• NASA has established a U.S.-based Euclid science data center, and NASA-funded science teams will join other Euclid scientists in studying dark energy, galaxy evolution, and dark matter.

• The agency’s Nancy Grace Roman mission will also study dark energy – in ways that are complementary to Euclid.

• Euclid differs from targeted observatories like NASA’s James Webb Space Telescope that focus on a smaller area of the sky at any one time but typically offer higher-resolution images.

• Wide-field observatories like Euclid can observe large sections of the sky much faster than targeted telescopes.

• In addition, Euclid has high resolution compared to previous survey missions, which means it will be able to see more galaxies in each image than previous telescopes.

Trend: Space exploration missions in News

Approach: Factual/knowledge based question

Answer: C

Explanation:

Option (c) is correct: The new images from the Euclid mission include a cluster of thousands of distant galaxies, demonstrating the spacecraft’s unique abilities.

• The Euclid mission investigates the mysteries of dark matter and dark energy, the observatory is led by ESA (European Space Agency) with NASA contributions.

• NASA has established a U.S.-based Euclid science data center, and NASA-funded science teams will join other Euclid scientists in studying dark energy, galaxy evolution, and dark matter.

• The agency’s Nancy Grace Roman mission will also study dark energy – in ways that are complementary to Euclid.

• Euclid differs from targeted observatories like NASA’s James Webb Space Telescope that focus on a smaller area of the sky at any one time but typically offer higher-resolution images.

• Wide-field observatories like Euclid can observe large sections of the sky much faster than targeted telescopes.

• In addition, Euclid has high resolution compared to previous survey missions, which means it will be able to see more galaxies in each image than previous telescopes.

Trend: Space exploration missions in News

Approach: Factual/knowledge based question

• Question 6 of 30 6. Question 1 points Consider the following: UNDP IMF World Bank OECD How many of the above are involved in launching Tax Inspectors without Borders programme? a) Only one b) Only two c) Only three d) All four Correct Answer: b Explanation: The Tax Inspectors Without Borders (TIWB), a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Cooperation and Development (OECD). It was launched in 2015. It aims to strengthen developing countries’ auditing capacity and multinationals’ compliance worldwide. It deploys qualified experts in developing countries across Africa, Asia, Eastern Europe, Latin America and the Caribbean to help build tax capacity in the areas of audit, criminal tax investigations and the effective use of automatically exchanged information. TIWB assistance has led to increased domestic resource mobilisation in some of the least developed countries in the world. Recently, the Tax Inspectors without Borders (TIWB), launched its programme in Saint Lucia. It aims to aid Saint Lucia in strengthening its tax administration by transferring technical know-how and skills to its tax auditors, and through sharing of best audit practices. The focus of the programme will be in the area of International Taxation and Transfer Pricing. India has been chosen as the Partner Administration will provide Tax Experts for this. This programme is expected to be of 12-18 months duration. Hence, option (b) is correct. Source: Current Affairs Trend: International Bodies in News Approach: Factual/knowledge based question Incorrect Answer: b Explanation: The Tax Inspectors Without Borders (TIWB), a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Cooperation and Development (OECD). It was launched in 2015. It aims to strengthen developing countries’ auditing capacity and multinationals’ compliance worldwide. It deploys qualified experts in developing countries across Africa, Asia, Eastern Europe, Latin America and the Caribbean to help build tax capacity in the areas of audit, criminal tax investigations and the effective use of automatically exchanged information. TIWB assistance has led to increased domestic resource mobilisation in some of the least developed countries in the world. Recently, the Tax Inspectors without Borders (TIWB), launched its programme in Saint Lucia. It aims to aid Saint Lucia in strengthening its tax administration by transferring technical know-how and skills to its tax auditors, and through sharing of best audit practices. The focus of the programme will be in the area of International Taxation and Transfer Pricing. India has been chosen as the Partner Administration will provide Tax Experts for this. This programme is expected to be of 12-18 months duration. Hence, option (b) is correct. Source: Current Affairs Trend: International Bodies in News Approach: Factual/knowledge based question

#### 6. Question

Consider the following:

• World Bank

How many of the above are involved in launching Tax Inspectors without Borders programme?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Explanation:

• The Tax Inspectors Without Borders (TIWB), a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Cooperation and Development (OECD).

• It was launched in 2015. It aims to strengthen developing countries’ auditing capacity and multinationals’ compliance worldwide.

• It deploys qualified experts in developing countries across Africa, Asia, Eastern Europe, Latin America and the Caribbean to help build tax capacity in the areas of audit, criminal tax investigations and the effective use of automatically exchanged information.

• TIWB assistance has led to increased domestic resource mobilisation in some of the least developed countries in the world.

• Recently, the Tax Inspectors without Borders (TIWB), launched its programme in Saint Lucia. It aims to aid Saint Lucia in strengthening its tax administration by transferring technical know-how and skills to its tax auditors, and through sharing of best audit practices. The focus of the programme will be in the area of International Taxation and Transfer Pricing.

• India has been chosen as the Partner Administration will provide Tax Experts for this.

• This programme is expected to be of 12-18 months duration.

• Hence, option (b) is correct.

Trend: International Bodies in News

Approach: Factual/knowledge based question

Explanation:

• The Tax Inspectors Without Borders (TIWB), a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Cooperation and Development (OECD).

• It was launched in 2015. It aims to strengthen developing countries’ auditing capacity and multinationals’ compliance worldwide.

• TIWB assistance has led to increased domestic resource mobilisation in some of the least developed countries in the world.

• India has been chosen as the Partner Administration will provide Tax Experts for this.

• This programme is expected to be of 12-18 months duration.

• Hence, option (b) is correct.

Trend: International Bodies in News

Approach: Factual/knowledge based question

• Question 7 of 30 7. Question 1 points With reference to the Local Currency Settlement System (LCSS) between India and UAE, consider the following statements: It covers all current account and capital account transactions between the two countries. It will enable exporters and importers to pay in their respective domestic currencies. Which of the above statements is/are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Correct Answer: b Explanation: The Local Currency Settlement System (LCSS) is a framework that facilitates cross-border transactions between two nations, allowing the transactions to be conducted using their respective domestic currencies. Recently, India and the United Arab Emirates (UAE) have signed a pact to establish Local Currency Settlement System (LCSS) to promote the use of the Indian rupee (INR) and UAE Dirham (AED) for cross-border transactions. The features of India-UAE LCSS : It covers all current account transactions and permitted capital account transactions. (Because, India has partial capital account convertibility). Hence, statement 1 is incorrect. The LCSS will enable exporters and importers to pay in their respective domestic currencies and enable the development of an INR-AED forex market. Hence, statement 2 is correct. It will reduce transaction costs and settlement time, including for remittances by Indians in the UAE. The central banks of both countries have signed to cooperate on linking India’s Unified Payments Interface (UPI) with the UAE’s Instant Payment Platform (IPP) and RuPay switch and UAESWITCH. The UPI-IPP link will enable users in both countries to make fast, safe and cost-effective cross-border transfers. Hence, option (b) is correct. Source: Current Affairs Trend: Bilateral Relations (West Asia) Approach: Statement 1 can be linked to core concept of Indian Economy i.e capital account is not fully convertible. Hence, “Currency Settlement” cannot cover the whole of capital account. Incorrect Answer: b Explanation: The Local Currency Settlement System (LCSS) is a framework that facilitates cross-border transactions between two nations, allowing the transactions to be conducted using their respective domestic currencies. Recently, India and the United Arab Emirates (UAE) have signed a pact to establish Local Currency Settlement System (LCSS) to promote the use of the Indian rupee (INR) and UAE Dirham (AED) for cross-border transactions. The features of India-UAE LCSS : It covers all current account transactions and permitted capital account transactions. (Because, India has partial capital account convertibility). Hence, statement 1 is incorrect. The LCSS will enable exporters and importers to pay in their respective domestic currencies and enable the development of an INR-AED forex market. Hence, statement 2 is correct. It will reduce transaction costs and settlement time, including for remittances by Indians in the UAE. The central banks of both countries have signed to cooperate on linking India’s Unified Payments Interface (UPI) with the UAE’s Instant Payment Platform (IPP) and RuPay switch and UAESWITCH. The UPI-IPP link will enable users in both countries to make fast, safe and cost-effective cross-border transfers. Hence, option (b) is correct. Source: Current Affairs Trend: Bilateral Relations (West Asia) Approach: Statement 1 can be linked to core concept of Indian Economy i.e capital account is not fully convertible. Hence, “Currency Settlement” cannot cover the whole of capital account.

#### 7. Question

With reference to the Local Currency Settlement System (LCSS) between India and UAE, consider the following statements:

• It covers all current account and capital account transactions between the two countries.

• It will enable exporters and importers to pay in their respective domestic currencies.

Which of the above statements is/are correct?

• c) Both 1 and 2

• d) Neither 1 nor 2

Explanation:

• The Local Currency Settlement System (LCSS) is a framework that facilitates cross-border transactions between two nations, allowing the transactions to be conducted using their respective domestic currencies.

• Recently, India and the United Arab Emirates (UAE) have signed a pact to establish Local Currency Settlement System (LCSS) to promote the use of the Indian rupee (INR) and UAE Dirham (AED) for cross-border transactions.

• The features of India-UAE LCSS :

• It covers all current account transactions and permitted capital account transactions. (Because, India has partial capital account convertibility). Hence, statement 1 is incorrect.

• The LCSS will enable exporters and importers to pay in their respective domestic currencies and enable the development of an INR-AED forex market. Hence, statement 2 is correct.

• It will reduce transaction costs and settlement time, including for remittances by Indians in the UAE.

• The central banks of both countries have signed to cooperate on linking India’s Unified Payments Interface (UPI) with the UAE’s Instant Payment Platform (IPP) and RuPay switch and UAESWITCH.

• The UPI-IPP link will enable users in both countries to make fast, safe and cost-effective cross-border transfers.

• Hence, option (b) is correct.

Trend: Bilateral Relations (West Asia)

Approach: Statement 1 can be linked to core concept of Indian Economy i.e capital account is not fully convertible. Hence, “Currency Settlement” cannot cover the whole of capital account.

Explanation:

• The features of India-UAE LCSS :

• It covers all current account transactions and permitted capital account transactions. (Because, India has partial capital account convertibility). Hence, statement 1 is incorrect.

• The LCSS will enable exporters and importers to pay in their respective domestic currencies and enable the development of an INR-AED forex market. Hence, statement 2 is correct.

• It will reduce transaction costs and settlement time, including for remittances by Indians in the UAE.

• The central banks of both countries have signed to cooperate on linking India’s Unified Payments Interface (UPI) with the UAE’s Instant Payment Platform (IPP) and RuPay switch and UAESWITCH.

• The UPI-IPP link will enable users in both countries to make fast, safe and cost-effective cross-border transfers.

• Hence, option (b) is correct.

Trend: Bilateral Relations (West Asia)

Approach: Statement 1 can be linked to core concept of Indian Economy i.e capital account is not fully convertible. Hence, “Currency Settlement” cannot cover the whole of capital account.

• Question 8 of 30 8. Question 1 points With reference to ‘Vostro’ account, consider the following: Facilitating Transactions in Indian Rupees Reducing Currency Risk Simplifying Cross-Border Trade Improved Regulatory Compliance How many of the above are benefits of Vostro account? a) Only one b) Only two c) Only three d) All four Correct Answer: d Explanation: The Reserve Bank of India (RBI) has allowed the opening of Special Vostro Accounts with Indian banks to facilitate overseas trade in rupee. A Vostro account is an account held by a domestic (Indian) bank on behalf of a foreign (American) bank in the domestic bank’s currency (Indian Currency). For example, when Bank A from the United States opens an account with Bank B in India, it’s called a Vostro account. Bank A can utilize this account to conduct business and transactions in Indian Rupees, the local currency of Bank B. There are two kinds of accounts: Vostro and Nostro : Both Vostro and Nostro are technically the same type of account, with the difference being who opens the account and where. Literally, Nostro means ‘ours’ and Vostro means ‘yours’ in Latin. So, if an Indian bank like the US wants to open an account in the India, it will get in touch with a bank in the India, which will open a Vostro account and accept payments for US bank in Rupees. The account opened by the US bank in the India will be a Vostro account (ours) for the Indian bank, while for the US bank, the account will be considered a Nostro account (yours). Vostro accounts are pivotal in encouraging Rupee transactions, mainly for global banks looking to do business in Indian currency. Here’s how they contribute to the Rupee trade: Facilitating Transactions in Indian Rupees: Vostro accounts allow foreign banks to hold and manage funds in Indian Rupees. This enables them to conduct transactions in Rupees, including trade finance, investment, and remittances. Hence, statement 1 is correct. Reducing Currency Risk: By allowing transactions to be conducted in Rupees, Vostro accounts help to reduce the currency risk associated with foreign exchange fluctuations. This can be particularly beneficial for companies engaged in large-scale or long-term trade contracts. Hence, statement 2 is correct. Simplifying Cross-Border Trade: By providing a mechanism for foreign banks to transact in Indian Rupees, Vostro accounts simplify the process of cross-border trade with India. Foreign companies can pay for Indian goods and services in Rupees, and Indian companies can receive payments in their local currency. Hence, statement 3 is correct Promoting the Use of Indian Rupees in International Trade: By facilitating the use of Indian Rupees in international trade, Vostro accounts help to promote the global use of the Rupee. This can contribute to the internationalization of the Rupee and enhance its status as a global trading currency. Regulatory Compliance: Vostro accounts in India are regulated by the Reserve Bank of India (RBI), ensuring that all transactions comply with Indian banking regulations. This provides a secure and transparent mechanism for foreign banks to conduct transactions in Indian Rupees. Hence, statement 4 is correct. Hence, option (d) is correct. Source: Current Affairs Trend: RBI and its initiatives Approach: Factual/knowledge based question Incorrect Answer: d Explanation: The Reserve Bank of India (RBI) has allowed the opening of Special Vostro Accounts with Indian banks to facilitate overseas trade in rupee. A Vostro account is an account held by a domestic (Indian) bank on behalf of a foreign (American) bank in the domestic bank’s currency (Indian Currency). For example, when Bank A from the United States opens an account with Bank B in India, it’s called a Vostro account. Bank A can utilize this account to conduct business and transactions in Indian Rupees, the local currency of Bank B. There are two kinds of accounts: Vostro and Nostro : Both Vostro and Nostro are technically the same type of account, with the difference being who opens the account and where. Literally, Nostro means ‘ours’ and Vostro means ‘yours’ in Latin. So, if an Indian bank like the US wants to open an account in the India, it will get in touch with a bank in the India, which will open a Vostro account and accept payments for US bank in Rupees. The account opened by the US bank in the India will be a Vostro account (ours) for the Indian bank, while for the US bank, the account will be considered a Nostro account (yours). Vostro accounts are pivotal in encouraging Rupee transactions, mainly for global banks looking to do business in Indian currency. Here’s how they contribute to the Rupee trade: Facilitating Transactions in Indian Rupees: Vostro accounts allow foreign banks to hold and manage funds in Indian Rupees. This enables them to conduct transactions in Rupees, including trade finance, investment, and remittances. Hence, statement 1 is correct. Reducing Currency Risk: By allowing transactions to be conducted in Rupees, Vostro accounts help to reduce the currency risk associated with foreign exchange fluctuations. This can be particularly beneficial for companies engaged in large-scale or long-term trade contracts. Hence, statement 2 is correct. Simplifying Cross-Border Trade: By providing a mechanism for foreign banks to transact in Indian Rupees, Vostro accounts simplify the process of cross-border trade with India. Foreign companies can pay for Indian goods and services in Rupees, and Indian companies can receive payments in their local currency. Hence, statement 3 is correct Promoting the Use of Indian Rupees in International Trade: By facilitating the use of Indian Rupees in international trade, Vostro accounts help to promote the global use of the Rupee. This can contribute to the internationalization of the Rupee and enhance its status as a global trading currency. Regulatory Compliance: Vostro accounts in India are regulated by the Reserve Bank of India (RBI), ensuring that all transactions comply with Indian banking regulations. This provides a secure and transparent mechanism for foreign banks to conduct transactions in Indian Rupees. Hence, statement 4 is correct. Hence, option (d) is correct. Source: Current Affairs Trend: RBI and its initiatives Approach: Factual/knowledge based question

#### 8. Question

With reference to ‘Vostro’ account, consider the following:

• Facilitating Transactions in Indian Rupees

• Reducing Currency Risk

• Simplifying Cross-Border Trade

• Improved Regulatory Compliance

How many of the above are benefits of Vostro account?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Explanation:

• The Reserve Bank of India (RBI) has allowed the opening of Special Vostro Accounts with Indian banks to facilitate overseas trade in rupee.

• A Vostro account is an account held by a domestic (Indian) bank on behalf of a foreign (American) bank in the domestic bank’s currency (Indian Currency).

• For example, when Bank A from the United States opens an account with Bank B in India, it’s called a Vostro account. Bank A can utilize this account to conduct business and transactions in Indian Rupees, the local currency of Bank B.

• There are two kinds of accounts: Vostro and Nostro :

• Both Vostro and Nostro are technically the same type of account, with the difference being who opens the account and where.

• Literally, Nostro means ‘ours’ and Vostro means ‘yours’ in Latin.

• So, if an Indian bank like the US wants to open an account in the India, it will get in touch with a bank in the India, which will open a Vostro account and accept payments for US bank in Rupees.

• The account opened by the US bank in the India will be a Vostro account (ours) for the Indian bank, while for the US bank, the account will be considered a Nostro account (yours).

• Vostro accounts are pivotal in encouraging Rupee transactions, mainly for global banks looking to do business in Indian currency. Here’s how they contribute to the Rupee trade:

• Facilitating Transactions in Indian Rupees: Vostro accounts allow foreign banks to hold and manage funds in Indian Rupees. This enables them to conduct transactions in Rupees, including trade finance, investment, and remittances. Hence, statement 1 is correct.

• Reducing Currency Risk: By allowing transactions to be conducted in Rupees, Vostro accounts help to reduce the currency risk associated with foreign exchange fluctuations. This can be particularly beneficial for companies engaged in large-scale or long-term trade contracts. Hence, statement 2 is correct.

• Simplifying Cross-Border Trade: By providing a mechanism for foreign banks to transact in Indian Rupees, Vostro accounts simplify the process of cross-border trade with India. Foreign companies can pay for Indian goods and services in Rupees, and Indian companies can receive payments in their local currency. Hence, statement 3 is correct

• Promoting the Use of Indian Rupees in International Trade: By facilitating the use of Indian Rupees in international trade, Vostro accounts help to promote the global use of the Rupee. This can contribute to the internationalization of the Rupee and enhance its status as a global trading currency.

• Regulatory Compliance: Vostro accounts in India are regulated by the Reserve Bank of India (RBI), ensuring that all transactions comply with Indian banking regulations. This provides a secure and transparent mechanism for foreign banks to conduct transactions in Indian Rupees. Hence, statement 4 is correct.

• Hence, option (d) is correct.

Trend: RBI and its initiatives

Approach: Factual/knowledge based question

Explanation:

• The Reserve Bank of India (RBI) has allowed the opening of Special Vostro Accounts with Indian banks to facilitate overseas trade in rupee.

• A Vostro account is an account held by a domestic (Indian) bank on behalf of a foreign (American) bank in the domestic bank’s currency (Indian Currency).

• There are two kinds of accounts: Vostro and Nostro :

• Both Vostro and Nostro are technically the same type of account, with the difference being who opens the account and where.

• Literally, Nostro means ‘ours’ and Vostro means ‘yours’ in Latin.

• The account opened by the US bank in the India will be a Vostro account (ours) for the Indian bank, while for the US bank, the account will be considered a Nostro account (yours).

• Vostro accounts are pivotal in encouraging Rupee transactions, mainly for global banks looking to do business in Indian currency. Here’s how they contribute to the Rupee trade:

• Hence, option (d) is correct.

Trend: RBI and its initiatives

Approach: Factual/knowledge based question

• Question 9 of 30 9. Question 1 points Consider the following statements: Statement-I: A Comprehensive Economic Partnership Agreement (CEPA) has wider coverage compared to a Comprehensive Economic Cooperation Agreement (CECA). Statement –II: A CEPA addresses issues such as services, investment, competition, intellectual property rights etc. Which one of the following is correct in respect of the above statements? a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I c) Statement-I is correct but Statement-II is incorrect d) Statement-I is incorrect but Statement-II is correct Correct Answer: a Explanation: CEPA stands for Comprehensive Economic Partnership Agreement and CECA stands for Comprehensive Economic Cooperation Agreement. The terms that make difference are “Cooperation” and “partnership”. Both these terms are synonymous with each other but the major “technical” difference between a CECA and CEPA is that CECA involves only “tariff reduction/elimination in a phased manner on listed / all items except the negative list and tariff rate quota (TRQ) items” , CEPA also covers the trade in services and investment, and other areas of economic partnership. So CEPA is a wider term that CECA and has the widest coverage. Hence, statement 1 is correct. Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive trade agreement that encompasses a wide range of economic cooperation areas. These agreements go beyond traditional trade agreements by addressing issues such as services, investment, competition, intellectual property rights, and more. Hence, statement 2 is correct and is the correct explanation of statement 1. Usually CECA is signed first with a country and after that negotiations may start for a CEPA. The recent trade agreement between India and UAE is a CEPA, while the agreement between India and Australia is a CECA. Hence, option (a) is correct. Source: Indian Economy Trend: Multilateral/Bilateral Trade Agreements Approach: Basic Concepts Incorrect Answer: a Explanation: CEPA stands for Comprehensive Economic Partnership Agreement and CECA stands for Comprehensive Economic Cooperation Agreement. The terms that make difference are “Cooperation” and “partnership”. Both these terms are synonymous with each other but the major “technical” difference between a CECA and CEPA is that CECA involves only “tariff reduction/elimination in a phased manner on listed / all items except the negative list and tariff rate quota (TRQ) items” , CEPA also covers the trade in services and investment, and other areas of economic partnership. So CEPA is a wider term that CECA and has the widest coverage. Hence, statement 1 is correct. Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive trade agreement that encompasses a wide range of economic cooperation areas. These agreements go beyond traditional trade agreements by addressing issues such as services, investment, competition, intellectual property rights, and more. Hence, statement 2 is correct and is the correct explanation of statement 1. Usually CECA is signed first with a country and after that negotiations may start for a CEPA. The recent trade agreement between India and UAE is a CEPA, while the agreement between India and Australia is a CECA. Hence, option (a) is correct. Source: Indian Economy Trend: Multilateral/Bilateral Trade Agreements Approach: Basic Concepts

#### 9. Question

Consider the following statements:

Statement-I:

A Comprehensive Economic Partnership Agreement (CEPA) has wider coverage compared to a Comprehensive Economic Cooperation Agreement (CECA).

Statement –II:

A CEPA addresses issues such as services, investment, competition, intellectual property rights etc.

Which one of the following is correct in respect of the above statements?

• a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• c) Statement-I is correct but Statement-II is incorrect

• d) Statement-I is incorrect but Statement-II is correct

Explanation:

• CEPA stands for Comprehensive Economic Partnership Agreement and CECA stands for Comprehensive Economic Cooperation Agreement.

• The terms that make difference are “Cooperation” and “partnership”. Both these terms are synonymous with each other but the major “technical” difference between a CECA and CEPA is that CECA involves only “tariff reduction/elimination in a phased manner on listed / all items except the negative list and tariff rate quota (TRQ) items” , CEPA also covers the trade in services and investment, and other areas of economic partnership. So CEPA is a wider term that CECA and has the widest coverage. Hence, statement 1 is correct.

• Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive trade agreement that encompasses a wide range of economic cooperation areas. These agreements go beyond traditional trade agreements by addressing issues such as services, investment, competition, intellectual property rights, and more. Hence, statement 2 is correct and is the correct explanation of statement 1.

• Usually CECA is signed first with a country and after that negotiations may start for a CEPA.

• The recent trade agreement between India and UAE is a CEPA, while the agreement between India and Australia is a CECA.

• Hence, option (a) is correct.

Trend: Multilateral/Bilateral Trade Agreements

Approach: Basic Concepts

Explanation:

• CEPA stands for Comprehensive Economic Partnership Agreement and CECA stands for Comprehensive Economic Cooperation Agreement.

• Usually CECA is signed first with a country and after that negotiations may start for a CEPA.

• The recent trade agreement between India and UAE is a CEPA, while the agreement between India and Australia is a CECA.

• Hence, option (a) is correct.

Trend: Multilateral/Bilateral Trade Agreements

Approach: Basic Concepts

• Question 10 of 30 10. Question 1 points Cross-border Interbank Payment System (CIPS) is a financial infrastructure to facilitate the settlement of trading and investments denominated in which of the following currencies? a) Rupee b) Dollars c) Renminbi d) Yen Correct Answer: c Explanation: In 2015, the People’s Bank of China officially released the Cross-border Interbank Payment System (CIPS) as financial infrastructure to facilitate the settlement of trading and investments denominated in Chinese Yuan or Renminbi. Its main functions are remittances and inter-bank settlements for customers related to cross-border RMB settlements (trade in goods & services, direct investment, financing, and fund transfer for individual customers, etc.). Hence, option (c) is correct. Source: Current Affairs Trend: Important terms in News Approach: Factual/knowledge based question Incorrect Answer: c Explanation: In 2015, the People’s Bank of China officially released the Cross-border Interbank Payment System (CIPS) as financial infrastructure to facilitate the settlement of trading and investments denominated in Chinese Yuan or Renminbi. Its main functions are remittances and inter-bank settlements for customers related to cross-border RMB settlements (trade in goods & services, direct investment, financing, and fund transfer for individual customers, etc.). Hence, option (c) is correct. Source: Current Affairs Trend: Important terms in News Approach: Factual/knowledge based question

#### 10. Question

Cross-border Interbank Payment System (CIPS) is a financial infrastructure to facilitate the settlement of trading and investments denominated in which of the following currencies?

• b) Dollars

• c) Renminbi

Explanation:

• In 2015, the People’s Bank of China officially released the Cross-border Interbank Payment System (CIPS) as financial infrastructure to facilitate the settlement of trading and investments denominated in Chinese Yuan or Renminbi.

• Its main functions are remittances and inter-bank settlements for customers related to cross-border RMB settlements (trade in goods & services, direct investment, financing, and fund transfer for individual customers, etc.).

• Hence, option (c) is correct.

Trend: Important terms in News

Approach: Factual/knowledge based question

Explanation:

• Hence, option (c) is correct.

Trend: Important terms in News

Approach: Factual/knowledge based question

• Question 11 of 30 11. Question 1 points Arrange the following currencies in a descending order with regard to their composition in foreign exchange reserves globally: US dollars Yen Pound Sterling Yuan Select the correct answer using the code given below: a) 1-2-3-4 b) 1-3-2-4 c) 1-4-2-3 d) 1-4-3-2 Correct Answer: a Explanation: Most modern countries maintain Foreign exchange Reserves (Forex). The Currency Composition of Official Foreign Exchange Reserves (COFER) database is managed by the Statistics Department of the International Monetary Fund (IMF). The currencies identified in COFER are: U.S. dollar, Pound sterling, Japanese yen, Swiss francs, Canadian dollar, Australian dollar, and Euro. All other currencies are indistinguishably included in the category of “other currencies.” Since the end of World War II, the United States dollar has been the unrivaled king of the international financial world. The US dollar has played the most prominent role in international transactions, trade settlements, and financial operations. Even w.r.t to foreign exchange reserves, majority countries prefer to keep dollars as Forex. Even though the share of reserves held in U.S. dollars by central banks dropped by 12 percentage points since the turn of the century, from 71 percent in 1999 to 59 percent in 2023,it is still the most demanded currency. Hence, option (a) is correct. Source: Current Affairs Trend: International Financial Bodies Approach: Factual/knowledge based question Incorrect Answer: a Explanation: Most modern countries maintain Foreign exchange Reserves (Forex). The Currency Composition of Official Foreign Exchange Reserves (COFER) database is managed by the Statistics Department of the International Monetary Fund (IMF). The currencies identified in COFER are: U.S. dollar, Pound sterling, Japanese yen, Swiss francs, Canadian dollar, Australian dollar, and Euro. All other currencies are indistinguishably included in the category of “other currencies.” Since the end of World War II, the United States dollar has been the unrivaled king of the international financial world. The US dollar has played the most prominent role in international transactions, trade settlements, and financial operations. Even w.r.t to foreign exchange reserves, majority countries prefer to keep dollars as Forex. Even though the share of reserves held in U.S. dollars by central banks dropped by 12 percentage points since the turn of the century, from 71 percent in 1999 to 59 percent in 2023,it is still the most demanded currency. Hence, option (a) is correct. Source: Current Affairs Trend: International Financial Bodies Approach: Factual/knowledge based question

#### 11. Question

Arrange the following currencies in a descending order with regard to their composition in foreign exchange reserves globally:

• US dollars

• Pound Sterling

Select the correct answer using the code given below:

• a) 1-2-3-4

• b) 1-3-2-4

• c) 1-4-2-3

• d) 1-4-3-2

Explanation:

• Most modern countries maintain Foreign exchange Reserves (Forex). The Currency Composition of Official Foreign Exchange Reserves (COFER) database is managed by the Statistics Department of the International Monetary Fund (IMF).

• The currencies identified in COFER are: U.S. dollar, Pound sterling, Japanese yen, Swiss francs, Canadian dollar, Australian dollar, and Euro. All other currencies are indistinguishably included in the category of “other currencies.”

• Since the end of World War II, the United States dollar has been the unrivaled king of the international financial world. The US dollar has played the most prominent role in international transactions, trade settlements, and financial operations.

• Even w.r.t to foreign exchange reserves, majority countries prefer to keep dollars as Forex.

• Even though the share of reserves held in U.S. dollars by central banks dropped by 12 percentage points since the turn of the century, from 71 percent in 1999 to 59 percent in 2023,it is still the most demanded currency.

• Hence, option (a) is correct.

Trend: International Financial Bodies

Approach: Factual/knowledge based question

Explanation:

• Even w.r.t to foreign exchange reserves, majority countries prefer to keep dollars as Forex.

• Hence, option (a) is correct.

Trend: International Financial Bodies

Approach: Factual/knowledge based question

• Question 12 of 30 12. Question 1 points Consider the following statements: Increased currency volatility as countries transition to using new currencies. Resistance from established players which can create geopolitical tensions. Lack of widely accepted alternative. How many of the above are challenges to De-dollarization? a) Only one b) Only two c) All three d) None Correct Answer: c Explanation: De-dollarization refers to the process of reducing dependence on the US dollar for international transactions, trade settlements, and financial operations. This shift is driven by a desire to reduce exposure to currency risk and increase economic autonomy. Challenges associated with the de-dollarization: Uncertainty: De-dollarization can lead to increased currency volatility as countries transition to using new currencies for trade. This can create uncertainty for businesses and investors. Hence, statement 1 is correct. Resistance from established players: Established players in the global financial system, such as the US and other Western powers, may resist de-dollarization efforts, which can create geopolitical tensions. Hence, statement 2 is correct. Limited acceptance of local currencies: Local currencies may not be widely accepted outside of their home countries, which can create difficulties for international trade. Local currencies may not have the same level of use in global financial markets as the US dollar, which can limit their usefulness for international trade. Dollar still remains the single largest shareholder in the market with 58%, with no eminent competitor. Its closest competitor, Euro only has 20% share. Hence, statement 3 is correct. Implementation challenges: There may be challenges in implementing de-dollarization, including developing new payment systems and addressing legal and regulatory barriers. Hence, option (c) is correct. Source: Current Affairs Trend: Important terms in News Approach: Applied knowledge (features of a Hard Currency ) Incorrect Answer: c Explanation: De-dollarization refers to the process of reducing dependence on the US dollar for international transactions, trade settlements, and financial operations. This shift is driven by a desire to reduce exposure to currency risk and increase economic autonomy. Challenges associated with the de-dollarization: Uncertainty: De-dollarization can lead to increased currency volatility as countries transition to using new currencies for trade. This can create uncertainty for businesses and investors. Hence, statement 1 is correct. Resistance from established players: Established players in the global financial system, such as the US and other Western powers, may resist de-dollarization efforts, which can create geopolitical tensions. Hence, statement 2 is correct. Limited acceptance of local currencies: Local currencies may not be widely accepted outside of their home countries, which can create difficulties for international trade. Local currencies may not have the same level of use in global financial markets as the US dollar, which can limit their usefulness for international trade. Dollar still remains the single largest shareholder in the market with 58%, with no eminent competitor. Its closest competitor, Euro only has 20% share. Hence, statement 3 is correct. Implementation challenges: There may be challenges in implementing de-dollarization, including developing new payment systems and addressing legal and regulatory barriers. Hence, option (c) is correct. Source: Current Affairs Trend: Important terms in News Approach: Applied knowledge (features of a Hard Currency )

#### 12. Question

Consider the following statements:

• Increased currency volatility as countries transition to using new currencies.

• Resistance from established players which can create geopolitical tensions.

• Lack of widely accepted alternative.

How many of the above are challenges to De-dollarization?

• a) Only one

• b) Only two

• c) All three

Explanation:

• De-dollarization refers to the process of reducing dependence on the US dollar for international transactions, trade settlements, and financial operations. This shift is driven by a desire to reduce exposure to currency risk and increase economic autonomy.

• Challenges associated with the de-dollarization:

• Uncertainty: De-dollarization can lead to increased currency volatility as countries transition to using new currencies for trade. This can create uncertainty for businesses and investors. Hence, statement 1 is correct.

• Resistance from established players: Established players in the global financial system, such as the US and other Western powers, may resist de-dollarization efforts, which can create geopolitical tensions. Hence, statement 2 is correct.

• Limited acceptance of local currencies: Local currencies may not be widely accepted outside of their home countries, which can create difficulties for international trade. Local currencies may not have the same level of use in global financial markets as the US dollar, which can limit their usefulness for international trade. Dollar still remains the single largest shareholder in the market with 58%, with no eminent competitor. Its closest competitor, Euro only has 20% share. Hence, statement 3 is correct.

• Implementation challenges: There may be challenges in implementing de-dollarization, including developing new payment systems and addressing legal and regulatory barriers.

• Hence, option (c) is correct.

Trend: Important terms in News

Approach: Applied knowledge (features of a Hard Currency )

Explanation:

• Challenges associated with the de-dollarization:

• Implementation challenges: There may be challenges in implementing de-dollarization, including developing new payment systems and addressing legal and regulatory barriers.

• Hence, option (c) is correct.

Trend: Important terms in News

Approach: Applied knowledge (features of a Hard Currency )

• Question 13 of 30 13. Question 1 points Consider the following statements: Statement- I: The ‘B-Ready project’ of IMF evaluates the business and investment climate in different countries. Statement-II: It will replace the ‘Doing Business project’ and will provide actionable evidence to promote reforms for a stronger private sector. Which one of the following is correct in respect of the above statements? a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I c) Statement-I is correct but Statement-II is incorrect d) Statement-I is incorrect but Statement-II is correct Correct Answer: d Explanation: Business Ready (B-READY) is the World Bank’s new flagship report which evaluates the business and investment climate in up to 180 economies in a transparent and fair way. Hence, statement 1 is incorrect. B-Ready project replaces the World Bank Group’s earlier Doing Business project. It was scrapped in 2021 after a probe revealed that rankings for China, Saudi Arabia, UAE, and Azerbaijan had been altered. It provides actionable evidence to promote reforms for a stronger private sector. The first B-READY report was launched in September 2024. Hence, statement 2 is correct. Hence, option (d) is correct. Source: Current Affairs Trend: International Bodies and their initiatives Approach: Factual/knowledge based question Incorrect Answer: d Explanation: Business Ready (B-READY) is the World Bank’s new flagship report which evaluates the business and investment climate in up to 180 economies in a transparent and fair way. Hence, statement 1 is incorrect. B-Ready project replaces the World Bank Group’s earlier Doing Business project. It was scrapped in 2021 after a probe revealed that rankings for China, Saudi Arabia, UAE, and Azerbaijan had been altered. It provides actionable evidence to promote reforms for a stronger private sector. The first B-READY report was launched in September 2024. Hence, statement 2 is correct. Hence, option (d) is correct. Source: Current Affairs Trend: International Bodies and their initiatives Approach: Factual/knowledge based question

#### 13. Question

Consider the following statements:

Statement- I:

The ‘B-Ready project’ of IMF evaluates the business and investment climate in different countries.

Statement-II:

It will replace the ‘Doing Business project’ and will provide actionable evidence to promote reforms for a stronger private sector.

Which one of the following is correct in respect of the above statements?

• a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• c) Statement-I is correct but Statement-II is incorrect

• d) Statement-I is incorrect but Statement-II is correct

Explanation:

• Business Ready (B-READY) is the World Bank’s new flagship report which evaluates the business and investment climate in up to 180 economies in a transparent and fair way. Hence, statement 1 is incorrect.

• B-Ready project replaces the World Bank Group’s earlier Doing Business project. It was scrapped in 2021 after a probe revealed that rankings for China, Saudi Arabia, UAE, and Azerbaijan had been altered.

• It provides actionable evidence to promote reforms for a stronger private sector. The first B-READY report was launched in September 2024. Hence, statement 2 is correct.

• Hence, option (d) is correct.

Trend: International Bodies and their initiatives

Approach: Factual/knowledge based question

Explanation:

• It provides actionable evidence to promote reforms for a stronger private sector. The first B-READY report was launched in September 2024. Hence, statement 2 is correct.

• Hence, option (d) is correct.

Trend: International Bodies and their initiatives

Approach: Factual/knowledge based question

• Question 14 of 30 14. Question 1 points With reference to the duty-free quota-free (DFQF) scheme of World Trade Organization (WTO), consider the following statements: India was the first developing country to extend this facility to eligible nations. Least Developed Countries (LDCs) from Africa are eligible to preferential market access under this scheme. Which of the above given statements is/are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Correct Answer: c Explanation: According to a recent report, about 85% of about 11,000 products offered at zero tariff by India to least developed countries (LDCs) under the duty-free quota-free (DFQF) scheme of the World Trade Organisation (WTO) remains unutilised. This report was published by the LDC Group at the multilateral trade body. About the duty-free quota-free (DFQF) scheme: The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005. The decision requires all developed and developing country members declaring themselves in a position to do so, to provide preferential market access for all products originating from all LDCs. India became the first developing country to extend this facility to LDCs in 2008, providing market access on 85% of India’s total tariff lines to better integrate LDCs into the global trading system and improve their trading opportunities. The scheme was expanded in 2014 providing preferential market access on about 98.2% of India’s tariff lines to LDCs. India offers 11,506 preferential tariff lines to LDCs of which 10, 991 are duty-free. Hence, statement 1 is correct. Under duty-free quota-free (DFQF) scheme, developing and developed nations provide preferential access to goods and services from Least Developed Countries (LDCs) from all across the world including LDCs from Africa. *(Note: The statement does not say African Nations only). Hence, statement 2 is correct. Hence, option (c) is correct. Source: Current Affairs Trend: International trade and tariff Approach: Factual/knowledge based question Incorrect Answer: c Explanation: According to a recent report, about 85% of about 11,000 products offered at zero tariff by India to least developed countries (LDCs) under the duty-free quota-free (DFQF) scheme of the World Trade Organisation (WTO) remains unutilised. This report was published by the LDC Group at the multilateral trade body. About the duty-free quota-free (DFQF) scheme: The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005. The decision requires all developed and developing country members declaring themselves in a position to do so, to provide preferential market access for all products originating from all LDCs. India became the first developing country to extend this facility to LDCs in 2008, providing market access on 85% of India’s total tariff lines to better integrate LDCs into the global trading system and improve their trading opportunities. The scheme was expanded in 2014 providing preferential market access on about 98.2% of India’s tariff lines to LDCs. India offers 11,506 preferential tariff lines to LDCs of which 10, 991 are duty-free. Hence, statement 1 is correct. Under duty-free quota-free (DFQF) scheme, developing and developed nations provide preferential access to goods and services from Least Developed Countries (LDCs) from all across the world including LDCs from Africa. (Note: The statement does not say African Nations only). Hence, statement 2 is correct. Hence, option (c) is correct. * Source: Current Affairs Trend: International trade and tariff Approach: Factual/knowledge based question

#### 14. Question

With reference to the duty-free quota-free (DFQF) scheme of World Trade Organization (WTO), consider the following statements:

• India was the first developing country to extend this facility to eligible nations.

• Least Developed Countries (LDCs) from Africa are eligible to preferential market access under this scheme.

Which of the above given statements is/are correct?

• c) Both 1 and 2

• d) Neither 1 nor 2

Explanation:

• According to a recent report, about 85% of about 11,000 products offered at zero tariff by India to least developed countries (LDCs) under the duty-free quota-free (DFQF) scheme of the World Trade Organisation (WTO) remains unutilised. This report was published by the LDC Group at the multilateral trade body.

• About the duty-free quota-free (DFQF) scheme:

• The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005.

• The decision requires all developed and developing country members declaring themselves in a position to do so, to provide preferential market access for all products originating from all LDCs.

• India became the first developing country to extend this facility to LDCs in 2008, providing market access on 85% of India’s total tariff lines to better integrate LDCs into the global trading system and improve their trading opportunities. The scheme was expanded in 2014 providing preferential market access on about 98.2% of India’s tariff lines to LDCs. India offers 11,506 preferential tariff lines to LDCs of which 10, 991 are duty-free. Hence, statement 1 is correct.

• Under duty-free quota-free (DFQF) scheme, developing and developed nations provide preferential access to goods and services from Least Developed Countries (LDCs) from all across the world including LDCs from Africa. *(Note: The statement does not say African Nations only). Hence, statement 2 is correct.*

• Hence, option (c) is correct.

Trend: International trade and tariff

Approach: Factual/knowledge based question

Explanation:

• About the duty-free quota-free (DFQF) scheme:

• The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005.

• The decision requires all developed and developing country members declaring themselves in a position to do so, to provide preferential market access for all products originating from all LDCs.

• Hence, option (c) is correct.

Trend: International trade and tariff

Approach: Factual/knowledge based question

• Question 15 of 30 15. Question 1 points Which of the following best describes the concept of ‘Most Favored Nation’? a) It is the principle of giving others the same treatment as one’s own nationals with respect to internal taxation and government regulations. b) It is the principle of non-discrimination and treating all the members equally. c) It is the principle of providing special and differential treatment to some trading partners. d) None of the above. Correct Answer: b Explanation: Article 1 of the General Agreement on Tariffs and Trade (GATT), 1994, requires every WTO member country to accord MFN status to all other member countries. World Trade Organization (WTO) members commit to treating other members equally so they can all benefit from each other’. This principle of non-discrimination is known as Most Favored Nation (MFN) treatment. This is one of the measures which ensures trade without discrimination. A nation with MFN status will not be discriminated against and will not be treated worse than any other nation with MFN status. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong. Exception to MFN: Countries can set up a free trade agreement that applies only to goods traded within the group – discriminating against goods from outside. They can give developing and Least developed countries special access to their markets. (Under generalized system of preferences). A country can raise barriers against products that are considered to be traded unfairly from specific countries. India and Pakistan are also granted exemption till they resolve the political issues. However, India granted MFN status to Pakistan in 1995 but withdrew it in 2019 after the terrorist attacks. Pakistan has never granted MFN status to India. Hence, option (b) is correct. Source: Indian Economy Trend: International trade and tariff policy Approach: knowledge based question Incorrect Answer: b Explanation: Article 1 of the General Agreement on Tariffs and Trade (GATT), 1994, requires every WTO member country to accord MFN status to all other member countries. World Trade Organization (WTO) members commit to treating other members equally so they can all benefit from each other’. This principle of non-discrimination is known as Most Favored Nation (MFN) treatment. This is one of the measures which ensures trade without discrimination. A nation with MFN status will not be discriminated against and will not be treated worse than any other nation with MFN status. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong. Exception to MFN: Countries can set up a free trade agreement that applies only to goods traded within the group – discriminating against goods from outside. They can give developing and Least developed countries special access to their markets. (Under generalized system of preferences). A country can raise barriers against products that are considered to be traded unfairly from specific countries. India and Pakistan are also granted exemption till they resolve the political issues. However, India granted MFN status to Pakistan in 1995 but withdrew it in 2019 after the terrorist attacks. Pakistan has never granted MFN status to India. Hence, option (b) is correct. Source: Indian Economy Trend: International trade and tariff policy Approach: knowledge based question

#### 15. Question

Which of the following best describes the concept of ‘Most Favored Nation’?

• a) It is the principle of giving others the same treatment as one’s own nationals with respect to internal taxation and government regulations.

• b) It is the principle of non-discrimination and treating all the members equally.

• c) It is the principle of providing special and differential treatment to some trading partners.

• d) None of the above.

Explanation:

• Article 1 of the General Agreement on Tariffs and Trade (GATT), 1994, requires every WTO member country to accord MFN status to all other member countries.

• World Trade Organization (WTO) members commit to treating other members equally so they can all benefit from each other’. This principle of non-discrimination is known as Most Favored Nation (MFN) treatment.

• This is one of the measures which ensures trade without discrimination. A nation with MFN status will not be discriminated against and will not be treated worse than any other nation with MFN status.

• In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.

• Exception to MFN:

• Countries can set up a free trade agreement that applies only to goods traded within the group – discriminating against goods from outside.

• They can give developing and Least developed countries special access to their markets. (Under generalized system of preferences).

• A country can raise barriers against products that are considered to be traded unfairly from specific countries.

• India and Pakistan are also granted exemption till they resolve the political issues. However, India granted MFN status to Pakistan in 1995 but withdrew it in 2019 after the terrorist attacks. Pakistan has never granted MFN status to India.

• Hence, option (b) is correct.

Trend: International trade and tariff policy

Approach: knowledge based question

Explanation:

• Article 1 of the General Agreement on Tariffs and Trade (GATT), 1994, requires every WTO member country to accord MFN status to all other member countries.

• Exception to MFN:

• Countries can set up a free trade agreement that applies only to goods traded within the group – discriminating against goods from outside.

• They can give developing and Least developed countries special access to their markets. (Under generalized system of preferences).

• A country can raise barriers against products that are considered to be traded unfairly from specific countries.

• Hence, option (b) is correct.

Trend: International trade and tariff policy

Approach: knowledge based question

• Question 16 of 30 16. Question 1 points Consider the following statements with reference to the agreement on Fisheries Subsidies of WTO: Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization’s 12th Ministerial conference. The agreement prohibits Illegal, Unreported and Unregulated (IUU) fishing. The agreement prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of the countries. How many of the above given statements are *incorrect? a) Only one b) Only two c) All three d) None Correct Answer: a Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization 12th Ministerial meeting held at Geneva in 2022. Hence, statement 1 is correct. The agreement prohibits subsidies from being provided for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks. (It does not deal with prohibiting IUU fishing. It only prohibits subsidies given to IUU fishing). Hence, statement 2 is incorrect. The agreement also prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of countries. Hence, statement 3 is correct. Under the Special and Differential Treatment (S&DT), Developing Countries and Least Developed Countries (LDCs) have been allowed a transition period of two years from the date of entry into force of this Agreement. No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU. No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU. What is India’s Stand? India is one of the lowest fisheries subsidizers despite such a large population and one of the disciplined nations in sustainably harnessing the fisheries resources. India does not exploit the resources indiscriminately like other advanced fishing nations and India’s fisheries sector primarily depends on several millions of small-scale and traditional fishers. Therefore, those WTO Members who have provided huge subsidies in the past, and engaged in large-scale industrial fishing, which is responsible for the depletion of fish stocks, should take more obligations to prohibit subsidies based on the ‘polluter pay principle’ and ‘common but differentiated responsibilities’. Hence, option (a) is correct. Source: Current Affairs Trend: International Agreements Approach: Statement 2 can be eliminated as the context of the agreement in question is “subsidies”. Incorrect Answer: a Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization 12th Ministerial meeting held at Geneva in 2022. Hence, statement 1 is correct. The agreement prohibits subsidies from being provided for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks. (It does not deal with prohibiting IUU fishing. It only prohibits subsidies given to IUU fishing). Hence, statement 2 is incorrect. The agreement also prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of countries. Hence, statement 3 is correct. Under the Special and Differential Treatment (S&DT), Developing Countries and Least Developed Countries (LDCs) have been allowed a transition period of two years from the date of entry into force of this Agreement. No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU. No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU. What is India’s Stand? India is one of the lowest fisheries subsidizers despite such a large population and one of the disciplined nations in sustainably harnessing the fisheries resources. India does not exploit the resources indiscriminately like other advanced fishing nations and India’s fisheries sector primarily depends on several millions of small-scale and traditional fishers. Therefore, those WTO Members who have provided huge subsidies in the past, and engaged in large-scale industrial fishing, which is responsible for the depletion of fish stocks, should take more obligations to prohibit subsidies based on the ‘polluter pay principle’ and ‘common but differentiated responsibilities’. Hence, option (a) is correct. * Source: Current Affairs Trend: International Agreements Approach: Statement 2 can be eliminated as the context of the agreement in question is “subsidies”.

#### 16. Question

Consider the following statements with reference to the agreement on Fisheries Subsidies of WTO:

• Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization’s 12th Ministerial conference.

• The agreement prohibits Illegal, Unreported and Unregulated (IUU) fishing.

• The agreement prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of the countries.

How many of the above given statements are *incorrect*?

• a) Only one

• b) Only two

• c) All three

• Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization 12th Ministerial meeting held at Geneva in 2022. Hence, statement 1 is correct.

• The agreement prohibits subsidies from being provided for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks. (*It does not deal with prohibiting IUU fishing. It only prohibits subsidies given to IUU fishing). Hence, statement 2 is incorrect.*

• The agreement also prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of countries. Hence, statement 3 is correct.

• Under the Special and Differential Treatment (S&DT), Developing Countries and Least Developed Countries (LDCs) have been allowed a transition period of two years from the date of entry into force of this Agreement.

• No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU.

• What is India’s Stand?

• India is one of the lowest fisheries subsidizers despite such a large population and one of the disciplined nations in sustainably harnessing the fisheries resources.

• India does not exploit the resources indiscriminately like other advanced fishing nations and India’s fisheries sector primarily depends on several millions of small-scale and traditional fishers.

• Therefore, those WTO Members who have provided huge subsidies in the past, and engaged in large-scale industrial fishing, which is responsible for the depletion of fish stocks, should take more obligations to prohibit subsidies based on the ‘polluter pay principle’ and ‘common but differentiated responsibilities’.

• Hence, option (a) is correct.

Trend: International Agreements

Approach: Statement 2 can be eliminated as the context of the agreement in question is “subsidies”.

• Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization 12th Ministerial meeting held at Geneva in 2022. Hence, statement 1 is correct.

• The agreement also prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of countries. Hence, statement 3 is correct.

• No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU.

• What is India’s Stand?

• India is one of the lowest fisheries subsidizers despite such a large population and one of the disciplined nations in sustainably harnessing the fisheries resources.

• Hence, option (a) is correct.

Trend: International Agreements

Approach: Statement 2 can be eliminated as the context of the agreement in question is “subsidies”.

• Question 17 of 30 17. Question 1 points The Interim Budget 2024 has announced the expansion of the application of Nano DAP. What are the advantages of Nano DAP? It will reduce government’s fertilizer subsidy burden. It envisages to make India self-reliant in fertiliser production. It is more environment friendly and will reduce soil contamination. How many of the above statements are correct? a) Only one b) Only two c) All three d) None Correct Answer: c Explanation: The Finance Minister in the Interim Budget 2024-25 has announced the expansion of the application of Nano DAP (Di-Ammonium Phosphate) as a Fertilizer on various crops in all agro-climatic zones. Nano fertilisers are highly efficient types of fertilisers that provide nutrients like nitrogen to crops through fine granules. DAP is the second most commonly used fertilizer in India after urea. DAP is a preferred fertilizer in India because it contains both Nitrogen and Phosphorus which are primary macro-nutrients and part of 18 essential plant nutrients. Fertilizer grade DAP contains 18% Nitrogen and 46% Phosphorus. It is manufactured by reacting Ammonia with Phosphoric acid under controlled conditions in fertilizer plants. Nano DAP: Nano DAP is a specialised form of DAP designed with the goal of improving the fertiliser’s effectiveness in promoting plant growth and development. In 2023 Indian Farmers Fertiliser Cooperative (IFFCO) launched its Nano DAP, containing 8% Nitrogen and 16% Phosphorus by volume. Unlike conventional DAP, which comes in granular form, IFFCO’s Nano DAP is in liquid form. Advantages of Nano DAP: More Efficient than Conventional DAP: This tiny particle, size less than 100 Nanometre (nm),makes Nano DAP more efficient than its conventional counterpart, enabling the fertiliser “to enter easily inside the seed surface or through stomata and other plant openings”. Better assimilation of the fertiliser inside the plant system in turn leads to “higher seed vigour, more chlorophyll, photosynthetic efficiency, better quality and increase in crop yields.” Pocket-Friendly: It is more pocket-friendly than its conventional counterpart. A 500 ml bottle of Nano DAP, equivalent to a 50-kg bag of conventional DAP, is priced at only Rs 600 (compared to Rs 1,350 for the bag). Since the government provides significant subsidies on DAP, the adoption of a more inexpensive fertiliser willlikely be a significant relief to the government’s subsidy burden. Hence, statement 1 is correct. More Convenient for Farmers: For farmers, Nano DAP is significantly more convenient as it comes in small 500 ml bottles, which are easier to carry, store, and apply than heavy 50kg bags. To use Nano DAP, farmers simply mix 250-500 ml of it with water and spray it on their crops, with this amount being needed per acre per spray. Reduction of Import Burden: India currently imports significant quantities of fertiliser to meet domestic demand. The adoption of domestically-produced Nano DAP (produced in Kalol, Gujarat)is set to significantly reduce this import burden. It will not only take Indian agriculture forward in food grain production but it will also make India self-reliant in fertiliser production. Hence, statement 2 is correct. Lesser Impact on Environment: Because of its liquid nature, Nano DAP will have less impact on the environment, which leads to lower land contamination than other fertilisers. By utilising liquid DAP and liquid urea, farmers may increase the number of earthworms in their fields and transition to natural farming without sacrificing productivity or profitability. Hence, statement 3 is correct. Hence, option (c) is correct. Source: Current Affairs Trend: Important policies announced in Budget Approach: Applied Knowledge Incorrect Answer: c Explanation: The Finance Minister in the Interim Budget 2024-25 has announced the expansion of the application of Nano DAP (Di-Ammonium Phosphate) as a Fertilizer on various crops in all agro-climatic zones. Nano fertilisers are highly efficient types of fertilisers that provide nutrients like nitrogen to crops through fine granules. DAP is the second most commonly used fertilizer in India after urea. DAP is a preferred fertilizer in India because it contains both Nitrogen and Phosphorus which are primary macro-nutrients and part of 18 essential plant nutrients. Fertilizer grade DAP contains 18% Nitrogen and 46% Phosphorus. It is manufactured by reacting Ammonia with Phosphoric acid under controlled conditions in fertilizer plants. Nano DAP: Nano DAP is a specialised form of DAP designed with the goal of improving the fertiliser’s effectiveness in promoting plant growth and development. In 2023 Indian Farmers Fertiliser Cooperative (IFFCO) launched its Nano DAP, containing 8% Nitrogen and 16% Phosphorus by volume. Unlike conventional DAP, which comes in granular form, IFFCO’s Nano DAP is in liquid form. Advantages of Nano DAP: More Efficient than Conventional DAP: This tiny particle, size less than 100 Nanometre (nm),makes Nano DAP more efficient than its conventional counterpart, enabling the fertiliser “to enter easily inside the seed surface or through stomata and other plant openings”. Better assimilation of the fertiliser inside the plant system in turn leads to “higher seed vigour, more chlorophyll, photosynthetic efficiency, better quality and increase in crop yields.” Pocket-Friendly: It is more pocket-friendly than its conventional counterpart. A 500 ml bottle of Nano DAP, equivalent to a 50-kg bag of conventional DAP, is priced at only Rs 600 (compared to Rs 1,350 for the bag). Since the government provides significant subsidies on DAP, the adoption of a more inexpensive fertiliser willlikely be a significant relief to the government’s subsidy burden. Hence, statement 1 is correct. More Convenient for Farmers: For farmers, Nano DAP is significantly more convenient as it comes in small 500 ml bottles, which are easier to carry, store, and apply than heavy 50kg bags. To use Nano DAP, farmers simply mix 250-500 ml of it with water and spray it on their crops, with this amount being needed per acre per spray. Reduction of Import Burden: India currently imports significant quantities of fertiliser to meet domestic demand. The adoption of domestically-produced Nano DAP (produced in Kalol, Gujarat)is set to significantly reduce this import burden. It will not only take Indian agriculture forward in food grain production but it will also make India self-reliant in fertiliser production. Hence, statement 2 is correct. Lesser Impact on Environment: Because of its liquid nature, Nano DAP will have less impact on the environment, which leads to lower land contamination than other fertilisers. By utilising liquid DAP and liquid urea, farmers may increase the number of earthworms in their fields and transition to natural farming without sacrificing productivity or profitability. Hence, statement 3 is correct. Hence, option (c) is correct. Source: Current Affairs Trend: Important policies announced in Budget Approach: Applied Knowledge

#### 17. Question

The Interim Budget 2024 has announced the expansion of the application of Nano DAP. What are the advantages of Nano DAP?

• It will reduce government’s fertilizer subsidy burden.

• It envisages to make India self-reliant in fertiliser production.

• It is more environment friendly and will reduce soil contamination.

How many of the above statements are correct?

• a) Only one

• b) Only two

• c) All three

Explanation:

• The Finance Minister in the Interim Budget 2024-25 has announced the expansion of the application of Nano DAP (Di-Ammonium Phosphate) as a Fertilizer on various crops in all agro-climatic zones.

• Nano fertilisers are highly efficient types of fertilisers that provide nutrients like nitrogen to crops through fine granules.

• DAP is the second most commonly used fertilizer in India after urea.

• DAP is a preferred fertilizer in India because it contains both Nitrogen and Phosphorus which are primary macro-nutrients and part of 18 essential plant nutrients.

• Fertilizer grade DAP contains 18% Nitrogen and 46% Phosphorus. It is manufactured by reacting Ammonia with Phosphoric acid under controlled conditions in fertilizer plants.

• Nano DAP is a specialised form of DAP designed with the goal of improving the fertiliser’s effectiveness in promoting plant growth and development.

• In 2023 Indian Farmers Fertiliser Cooperative (IFFCO) launched its Nano DAP, containing 8% Nitrogen and 16% Phosphorus by volume.

• Unlike conventional DAP, which comes in granular form, IFFCO’s Nano DAP is in liquid form.

• Advantages of Nano DAP:

• More Efficient than Conventional DAP: This tiny particle, size less than 100 Nanometre (nm),makes Nano DAP more efficient than its conventional counterpart, enabling the fertiliser “to enter easily inside the seed surface or through stomata and other plant openings”. Better assimilation of the fertiliser inside the plant system in turn leads to “higher seed vigour, more chlorophyll, photosynthetic efficiency, better quality and increase in crop yields.”

• Pocket-Friendly: It is more pocket-friendly than its conventional counterpart. A 500 ml bottle of Nano DAP, equivalent to a 50-kg bag of conventional DAP, is priced at only Rs 600 (compared to Rs 1,350 for the bag).

• Since the government provides significant subsidies on DAP, the adoption of a more inexpensive fertiliser willlikely be a significant relief to the government’s subsidy burden. Hence, statement 1 is correct.

• More Convenient for Farmers: For farmers, Nano DAP is significantly more convenient as it comes in small 500 ml bottles, which are easier to carry, store, and apply than heavy 50kg bags. To use Nano DAP, farmers simply mix 250-500 ml of it with water and spray it on their crops, with this amount being needed per acre per spray.

• Reduction of Import Burden: India currently imports significant quantities of fertiliser to meet domestic demand. The adoption of domestically-produced Nano DAP (produced in Kalol, Gujarat)is set to significantly reduce this import burden. It will not only take Indian agriculture forward in food grain production but it will also make India self-reliant in fertiliser production. Hence, statement 2 is correct.

• Lesser Impact on Environment: Because of its liquid nature, Nano DAP will have less impact on the environment, which leads to lower land contamination than other fertilisers. By utilising liquid DAP and liquid urea, farmers may increase the number of earthworms in their fields and transition to natural farming without sacrificing productivity or profitability. Hence, statement 3 is correct.

• Hence, option (c) is correct.

Trend: Important policies announced in Budget

Approach: Applied Knowledge