DAY – 4 : Insta 75 Days Revision Plan-2025 : ECONOMY

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• Question 1 of 30 1. Question 1 points Consider the following pairs: Reports/Indices Publishing Organizations Digital Economy Report World Trade Organization (WTO) Global Risks Report World Economic Forum (WEF) World Investment Report Organisation for Economic Co-operation and Development (OECD) Global Financial Stability Report Bank for International Settlements (BIS) How many of the pairs given above are not correctly matched? a) Only one b) Only two c) Only three d) All four Correct Solution: C The Digital Economy Report is published by the United Nations Conference on Trade and Development (UNCTAD). The report provides a comprehensive review of studies dealing with cross-border data flows and analyzes inequalities in the data-driven digital economy. UNCTAD’s Digital Economy Report monitors trends and policies related to access, use and impact of digital technologies from a development perspective. Hence Pair 1 is incorrectly matched The Global Risks Report is published by the World Economic Forum. The report identifies and analyzes global risks, with recent editions highlighting environmental risks as the greatest source of long-term concern. The 2025 report emphasizes that environmental problems are urgent and require immediate solutions. Hence Pair 2 is correctly matched The World Investment Report is published by the United Nations Conference on Trade and Development (UNCTAD). This annual publication provides a comprehensive overview of global foreign direct investment (FDI) trends and developments. Hence Pair 3 is incorrectly matched The Global Financial Stability Report (GFSR) is published by the International Monetary Fund (IMF). This semiannual report assesses the stability of global financial markets and emerging-market financing. It is released twice per year, in April and October, and focuses on current conditions that could risk upsetting global financial stability Hence Pair 4 is incorrectly matched Incorrect Solution: C The Digital Economy Report is published by the United Nations Conference on Trade and Development (UNCTAD). The report provides a comprehensive review of studies dealing with cross-border data flows and analyzes inequalities in the data-driven digital economy. UNCTAD’s Digital Economy Report monitors trends and policies related to access, use and impact of digital technologies from a development perspective. Hence Pair 1 is incorrectly matched The Global Risks Report is published by the World Economic Forum. The report identifies and analyzes global risks, with recent editions highlighting environmental risks as the greatest source of long-term concern. The 2025 report emphasizes that environmental problems are urgent and require immediate solutions. Hence Pair 2 is correctly matched The World Investment Report is published by the United Nations Conference on Trade and Development (UNCTAD). This annual publication provides a comprehensive overview of global foreign direct investment (FDI) trends and developments. Hence Pair 3 is incorrectly matched The Global Financial Stability Report (GFSR) is published by the International Monetary Fund (IMF). This semiannual report assesses the stability of global financial markets and emerging-market financing. It is released twice per year, in April and October, and focuses on current conditions that could risk upsetting global financial stability Hence Pair 4 is incorrectly matched

#### 1. Question

Consider the following pairs: Reports/Indices Publishing Organizations

• Digital Economy Report World Trade Organization (WTO)

• Global Risks Report World Economic Forum (WEF)

• World Investment Report Organisation for Economic Co-operation and Development (OECD)

• Global Financial Stability Report Bank for International Settlements (BIS)

How many of the pairs given above are not correctly matched?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Solution: C

The Digital Economy Report is published by the United Nations Conference on Trade and Development (UNCTAD). The report provides a comprehensive review of studies dealing with cross-border data flows and analyzes inequalities in the data-driven digital economy. UNCTAD’s Digital Economy Report monitors trends and policies related to access, use and impact of digital technologies from a development perspective.

Hence Pair 1 is incorrectly matched

The Global Risks Report is published by the World Economic Forum. The report identifies and analyzes global risks, with recent editions highlighting environmental risks as the greatest source of long-term concern. The 2025 report emphasizes that environmental problems are urgent and require immediate solutions.

Hence Pair 2 is correctly matched

The World Investment Report is published by the United Nations Conference on Trade and Development (UNCTAD). This annual publication provides a comprehensive overview of global foreign direct investment (FDI) trends and developments.

Hence Pair 3 is incorrectly matched

The Global Financial Stability Report (GFSR) is published by the International Monetary Fund (IMF). This semiannual report assesses the stability of global financial markets and emerging-market financing. It is released twice per year, in April and October, and focuses on current conditions that could risk upsetting global financial stability

Hence Pair 4 is incorrectly matched

Solution: C

Hence Pair 1 is incorrectly matched

Hence Pair 2 is correctly matched

Hence Pair 3 is incorrectly matched

Hence Pair 4 is incorrectly matched

• Question 2 of 30 2. Question 1 points In the Indian budgetary framework, ‘Statement 12’ of the Expenditure Profile is specifically related to which of the following? a) Renewable Energy Budgeting b) Allocation for Welfare of Children c) Allocation for Scheduled Tribes d) Climate Change Financing Correct Solution: B In the Indian budgetary framework, ‘Statement 12’ of the Expenditure Profile is specifically related to the allocation for the welfare of children. This statement details budget provisions under various schemes aimed at benefiting children. Part A: Schemes with 100% provision for children. Part B: Schemes with 30-99% allocations for children. Part C: Schemes with allocations for children below 30% of the provision. Hence, option (b) is correct https://www.indiabudget.gov.in/doc/eb/stat12.pdf Incorrect Solution: B In the Indian budgetary framework, ‘Statement 12’ of the Expenditure Profile is specifically related to the allocation for the welfare of children. This statement details budget provisions under various schemes aimed at benefiting children. Part A: Schemes with 100% provision for children. Part B: Schemes with 30-99% allocations for children. Part C: Schemes with allocations for children below 30% of the provision. Hence, option (b) is correct https://www.indiabudget.gov.in/doc/eb/stat12.pdf

#### 2. Question

In the Indian budgetary framework, ‘Statement 12’ of the Expenditure Profile is specifically related to which of the following?

• a) Renewable Energy Budgeting

• b) Allocation for Welfare of Children

• c) Allocation for Scheduled Tribes

• d) Climate Change Financing

Solution: B

In the Indian budgetary framework, ‘Statement 12’ of the Expenditure Profile is specifically related to the allocation for the welfare of children. This statement details budget provisions under various schemes aimed at benefiting children.

• Part A: Schemes with 100% provision for children.

• Part B: Schemes with 30-99% allocations for children.

• Part C: Schemes with allocations for children below 30% of the provision.

Hence, option (b) is correct

https://www.indiabudget.gov.in/doc/eb/stat12.pdf

Solution: B

• Part A: Schemes with 100% provision for children.

• Part B: Schemes with 30-99% allocations for children.

• Part C: Schemes with allocations for children below 30% of the provision.

Hence, option (b) is correct

https://www.indiabudget.gov.in/doc/eb/stat12.pdf

• Question 3 of 30 3. Question 1 points The ‘Ways and Means Advances’ mechanism in India is primarily used to: a) Provide short-term credit from RBI to commercial banks facing liquidity shortage b) Facilitate inter-bank lending in the money market through CCIL c) Provide temporary advances from RBI to governments to address cash flow mismatches d) Finance priority sector lending through specialized institutions like NABARD Correct Solution: C Ways and Means Advances (WMA) represent a significant mechanism within India’s financial infrastructure that allows governments to manage temporary cash flow mismatches. This facility is authorized under Section 17(5) of the RBI Act, 1934, which enables the central bank to provide short-term financial accommodation to both the central and state governments. The primary purpose of WMA is to help governments overcome temporary gaps between their receipts and expenditures. These advances are meant purely to help them to tide over temporary mismatches in cash flows of their receipts and expenditures. They are not intended as a source of finance for government expenditure but rather as a temporary bridging mechanism. Hence, option (c) is correct Incorrect Solution: C Ways and Means Advances (WMA) represent a significant mechanism within India’s financial infrastructure that allows governments to manage temporary cash flow mismatches. This facility is authorized under Section 17(5) of the RBI Act, 1934, which enables the central bank to provide short-term financial accommodation to both the central and state governments. The primary purpose of WMA is to help governments overcome temporary gaps between their receipts and expenditures. These advances are meant purely to help them to tide over temporary mismatches in cash flows of their receipts and expenditures. They are not intended as a source of finance for government expenditure but rather as a temporary bridging mechanism. Hence, option (c) is correct

#### 3. Question

The ‘Ways and Means Advances’ mechanism in India is primarily used to:

• a) Provide short-term credit from RBI to commercial banks facing liquidity shortage

• b) Facilitate inter-bank lending in the money market through CCIL

• c) Provide temporary advances from RBI to governments to address cash flow mismatches

• d) Finance priority sector lending through specialized institutions like NABARD

Solution: C

Ways and Means Advances (WMA) represent a significant mechanism within India’s financial infrastructure that allows governments to manage temporary cash flow mismatches. This facility is authorized under Section 17(5) of the RBI Act, 1934, which enables the central bank to provide short-term financial accommodation to both the central and state governments.

The primary purpose of WMA is to help governments overcome temporary gaps between their receipts and expenditures. These advances are meant purely to help them to tide over temporary mismatches in cash flows of their receipts and expenditures. They are not intended as a source of finance for government expenditure but rather as a temporary bridging mechanism.

Hence, option (c) is correct

Solution: C

Hence, option (c) is correct

• Question 4 of 30 4. Question 1 points Consider the following statements regarding Asian Infrastructure Investment Bank (AIIB) : It is a multilateral Development bank whose membership is restricted to members of the United Nations. In cooperation with UN Women, AIIB advocates for public Development Banks to invest in care infrastructure. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution : B The Asian Infrastructure Investment Bank is a multilateral Development Bank whose mission is financing infrastructure for tomorrow in Asia and beyond- infrastructure with sustainability at its core. It began operations in China in 2016 and presently has 110 approved members worldwide including 12 prospective members from around the world. The 110 member Nations around the world include: 42 in Asia, 26 in Europe, 22 in Africa, 10 in Oceania, 8 in South America and 2 in North America. It’s membership is not restricted to membership of the United Nations. Hence statement 1 is incorrect UN Women and AIIB have jointly released a new report ‘*Financing care Infrastructure : An opportunity for Public Development Banks to pave the way for Tomorrow’s Equality’. The report underscores the urgent need for Public Development Banks to invest in care infrastructure as a key driver of gender equality and prosperous societies. Hence statement 2 is correct Incorrect Solution : B The Asian Infrastructure Investment Bank is a multilateral Development Bank whose mission is financing infrastructure for tomorrow in Asia and beyond- infrastructure with sustainability at its core. It began operations in China in 2016 and presently has 110 approved members worldwide including 12 prospective members from around the world. The 110 member Nations around the world include: 42 in Asia, 26 in Europe, 22 in Africa, 10 in Oceania, 8 in South America and 2 in North America. It’s membership is not restricted to membership of the United Nations. Hence statement 1 is incorrect UN Women and AIIB have jointly released a new report ‘Financing care Infrastructure : An opportunity for Public Development Banks to pave the way for Tomorrow’s Equality’. The report underscores the urgent need for Public Development Banks to invest in care infrastructure as a key driver of gender equality and prosperous societies. Hence statement 2 is correct *

#### 4. Question

Consider the following statements regarding Asian Infrastructure Investment Bank (AIIB) :

• It is a multilateral Development bank whose membership is restricted to members of the United Nations.

• In cooperation with UN Women, AIIB advocates for public Development Banks to invest in care infrastructure.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution : B

• The Asian Infrastructure Investment Bank is a multilateral Development Bank whose mission is financing infrastructure for tomorrow in Asia and beyond- infrastructure with sustainability at its core.

• It began operations in China in 2016 and presently has 110 approved members worldwide including 12 prospective members from around the world.

• The 110 member Nations around the world include: 42 in Asia, 26 in Europe, 22 in Africa, 10 in Oceania, 8 in South America and 2 in North America. It’s membership is not restricted to membership of the United Nations.

Hence statement 1 is incorrect

• UN Women and AIIB have jointly released a new report ‘*Financing care Infrastructure : An opportunity for Public Development Banks to pave the way for Tomorrow’s Equality’.*

• The report underscores the urgent need for Public Development Banks to invest in care infrastructure as a key driver of gender equality and prosperous societies.

Hence statement 2 is correct

Solution : B

• It began operations in China in 2016 and presently has 110 approved members worldwide including 12 prospective members from around the world.

Hence statement 1 is incorrect

• UN Women and AIIB have jointly released a new report ‘*Financing care Infrastructure : An opportunity for Public Development Banks to pave the way for Tomorrow’s Equality’.*

• The report underscores the urgent need for Public Development Banks to invest in care infrastructure as a key driver of gender equality and prosperous societies.

Hence statement 2 is correct

• Question 5 of 30 5. Question 1 points Consider the following statements about the National Bank for Financing Infrastructure and Development (NaBFID): NaBFID was established with an authorized share capital of one lakh crore rupees, with the central government initially owning 100% of shares. The functions of NaBFID include extending loans, refinancing existing loans, attracting investments, and facilitating foreign participation in infrastructure projects. The central government provides guarantees at a concessional rate for NaBFID’s borrowing from multilateral institutions and may reimburse costs related to foreign exchange fluctuations. Prior sanction is required for investigation and prosecution against employees of NaBFID. How many of the statements given above are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: D The National Bank for Financing Infrastructure and Development (NaBFID) was established in 2021 under the NaBFID Act, 2021, as a Development Finance Institution (DFI) to address the gaps in long-term non-recourse finance for infrastructure development in India. The NaBFID Act, 2021, specifies that the institution was established with an authorized share capital of one lakh crore rupees, and the central government initially owns 100% of the shares, which may subsequently be reduced to not less than 26%. Hence statement 1 is correct According to the NaBFID Act, 2021, the functions of NaBFID encompass: Extending loans and advances for infrastructure projects. Taking over or refinancing existing loans. Attracting investment from private sector investors and institutional investors for infrastructure projects. Organizing and facilitating foreign participation in infrastructure projects. Hence statement 2 is correct The NaBFID Act, 2021, provides that the central government may grant guarantees at a concessional rate for NaBFID’s borrowings from multilateral or bilateral institutions, sovereign wealth funds, and other foreign institutions. Additionally, the government may reimburse NaBFID for costs incurred due to foreign exchange fluctuations. Hence statement 3 is correct The NaBFID Act, 2021, stipulates that no investigation shall be initiated against any officer or employee of NaBFID without the prior sanction of the central government. Hence statement 4 is correct Incorrect Solution: D The National Bank for Financing Infrastructure and Development (NaBFID) was established in 2021 under the NaBFID Act, 2021, as a Development Finance Institution (DFI) to address the gaps in long-term non-recourse finance for infrastructure development in India. The NaBFID Act, 2021, specifies that the institution was established with an authorized share capital of one lakh crore rupees, and the central government initially owns 100% of the shares, which may subsequently be reduced to not less than 26%. Hence statement 1 is correct According to the NaBFID Act, 2021, the functions of NaBFID encompass: Extending loans and advances for infrastructure projects. Taking over or refinancing existing loans. Attracting investment from private sector investors and institutional investors for infrastructure projects. Organizing and facilitating foreign participation in infrastructure projects. Hence statement 2 is correct The NaBFID Act, 2021, provides that the central government may grant guarantees at a concessional rate for NaBFID’s borrowings from multilateral or bilateral institutions, sovereign wealth funds, and other foreign institutions. Additionally, the government may reimburse NaBFID for costs incurred due to foreign exchange fluctuations. Hence statement 3 is correct The NaBFID Act, 2021, stipulates that no investigation shall be initiated against any officer or employee of NaBFID without the prior sanction of the central government. Hence statement 4 is correct Solution: D The National Bank for Financing Infrastructure and Development (NaBFID) was established in 2021 under the NaBFID Act, 2021, as a Development Finance Institution (DFI) to address the gaps in long-term non-recourse finance for infrastructure development in India. The NaBFID Act, 2021, specifies that the institution was established with an authorized share capital of one lakh crore rupees, and the central government initially owns 100% of the shares, which may subsequently be reduced to not less than 26%. Hence statement 1 is correct According to the NaBFID Act, 2021, the functions of NaBFID encompass: Extending loans and advances for infrastructure projects. Taking over or refinancing existing loans. Attracting investment from private sector investors and institutional investors for infrastructure projects. Organizing and facilitating foreign participation in infrastructure projects. Hence statement 2 is correct The NaBFID Act, 2021, provides that the central government may grant guarantees at a concessional rate for NaBFID’s borrowings from multilateral or bilateral institutions, sovereign wealth funds, and other foreign institutions. Additionally, the government may reimburse NaBFID for costs incurred due to foreign exchange fluctuations. Hence statement 3 is correct The NaBFID Act, 2021, stipulates that no investigation shall be initiated against any officer or employee of NaBFID without the prior sanction of the central government. Hence statement 4 is correct

#### 5. Question

Consider the following statements about the National Bank for Financing Infrastructure and Development (NaBFID):

• NaBFID was established with an authorized share capital of one lakh crore rupees, with the central government initially owning 100% of shares.

• The functions of NaBFID include extending loans, refinancing existing loans, attracting investments, and facilitating foreign participation in infrastructure projects.

• The central government provides guarantees at a concessional rate for NaBFID’s borrowing from multilateral institutions and may reimburse costs related to foreign exchange fluctuations.

• Prior sanction is required for investigation and prosecution against employees of NaBFID.

How many of the statements given above are correct?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: D

The National Bank for Financing Infrastructure and Development (NaBFID) was established in 2021 under the NaBFID Act, 2021, as a Development Finance Institution (DFI) to address the gaps in long-term non-recourse finance for infrastructure development in India.

The NaBFID Act, 2021, specifies that the institution was established with an authorized share capital of one lakh crore rupees, and the central government initially owns 100% of the shares, which may subsequently be reduced to not less than 26%.

Hence statement 1 is correct

According to the NaBFID Act, 2021, the functions of NaBFID encompass:

• Extending loans and advances for infrastructure projects.

• Taking over or refinancing existing loans.

• Attracting investment from private sector investors and institutional investors for infrastructure projects.

• Organizing and facilitating foreign participation in infrastructure projects.

Hence statement 2 is correct

The NaBFID Act, 2021, provides that the central government may grant guarantees at a concessional rate for NaBFID’s borrowings from multilateral or bilateral institutions, sovereign wealth funds, and other foreign institutions. Additionally, the government may reimburse NaBFID for costs incurred due to foreign exchange fluctuations.

Hence statement 3 is correct

The NaBFID Act, 2021, stipulates that no investigation shall be initiated against any officer or employee of NaBFID without the prior sanction of the central government.

Hence statement 4 is correct

Solution: D

Hence statement 1 is correct

According to the NaBFID Act, 2021, the functions of NaBFID encompass:

• Extending loans and advances for infrastructure projects.

• Taking over or refinancing existing loans.

• Attracting investment from private sector investors and institutional investors for infrastructure projects.

• Organizing and facilitating foreign participation in infrastructure projects.

Hence statement 2 is correct

Hence statement 3 is correct

The NaBFID Act, 2021, stipulates that no investigation shall be initiated against any officer or employee of NaBFID without the prior sanction of the central government.

Hence statement 4 is correct

Solution: D

Hence statement 1 is correct

According to the NaBFID Act, 2021, the functions of NaBFID encompass:

• Extending loans and advances for infrastructure projects.

• Taking over or refinancing existing loans.

• Attracting investment from private sector investors and institutional investors for infrastructure projects.

• Organizing and facilitating foreign participation in infrastructure projects.

Hence statement 2 is correct

Hence statement 3 is correct

The NaBFID Act, 2021, stipulates that no investigation shall be initiated against any officer or employee of NaBFID without the prior sanction of the central government.

Hence statement 4 is correct

• Question 6 of 30 6. Question 1 points Consider the following statements about international financial assistance for balance of payments issues: Countries receiving IMF assistance must implement structural measures and meet quantitative performance criteria as conditions for disbursement. The Poverty Reduction and Growth Trust (PRGT) provides financial support exclusively to middle-income countries facing temporary balance of payments needs. The IMF requires countries seeking financial assistance to demonstrate that their economic policies will address the problems that led to balance of payments difficulties. The International Monetary Fund was formed in 1944 at the Bretton Woods Conference with the goal of reconstructing the international monetary system. How many of the statements given above are incorrect? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: A The International Monetary Fund (IMF) provides financial assistance to member countries facing balance of payments problems, often attaching specific conditions to ensure that the borrowing country implements policies aimed at resolving its economic challenges. IMF assistance typically comes with conditionality, requiring countries to implement specific policy measures. These conditions often include structural reforms and quantitative performance criteria related to fiscal, monetary, and external policy outcomes. For example, in the case of Greece’s Stand-By Arrangement from 2010 to 2012, the IMF set conditions that included fiscal consolidation measures and structural reforms aimed at enhancing competitiveness and growth. Hence statement 1 is correct The PRGT is the IMF’s main vehicle for providing concessional financing to low-income countries (LICs), not middle-income countries. It offers interest-free loans to support LICs in implementing policies that foster macroeconomic stability and growth. Hence statement 2 is Incorrect As part of its conditionality framework, the IMF requires borrowing countries to implement policy reforms aimed at correcting macroeconomic imbalances. These reforms are intended to ensure that the country can repay the IMF and restore economic stability. Hence statement 3 is correct The IMF was established in 1944 during the United Nations Monetary and Financial Conference, commonly known as the Bretton Woods Conference, with the primary goal of reconstructing the international monetary system. Hence statement 4 is correct Incorrect Solution: A The International Monetary Fund (IMF) provides financial assistance to member countries facing balance of payments problems, often attaching specific conditions to ensure that the borrowing country implements policies aimed at resolving its economic challenges. IMF assistance typically comes with conditionality, requiring countries to implement specific policy measures. These conditions often include structural reforms and quantitative performance criteria related to fiscal, monetary, and external policy outcomes. For example, in the case of Greece’s Stand-By Arrangement from 2010 to 2012, the IMF set conditions that included fiscal consolidation measures and structural reforms aimed at enhancing competitiveness and growth. Hence statement 1 is correct The PRGT is the IMF’s main vehicle for providing concessional financing to low-income countries (LICs), not middle-income countries. It offers interest-free loans to support LICs in implementing policies that foster macroeconomic stability and growth. Hence statement 2 is Incorrect As part of its conditionality framework, the IMF requires borrowing countries to implement policy reforms aimed at correcting macroeconomic imbalances. These reforms are intended to ensure that the country can repay the IMF and restore economic stability. Hence statement 3 is correct The IMF was established in 1944 during the United Nations Monetary and Financial Conference, commonly known as the Bretton Woods Conference, with the primary goal of reconstructing the international monetary system. Hence statement 4 is correct

#### 6. Question

Consider the following statements about international financial assistance for balance of payments issues:

• Countries receiving IMF assistance must implement structural measures and meet quantitative performance criteria as conditions for disbursement.

• The Poverty Reduction and Growth Trust (PRGT) provides financial support exclusively to middle-income countries facing temporary balance of payments needs.

• The IMF requires countries seeking financial assistance to demonstrate that their economic policies will address the problems that led to balance of payments difficulties.

• The International Monetary Fund was formed in 1944 at the Bretton Woods Conference with the goal of reconstructing the international monetary system.

How many of the statements given above are incorrect?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: A

The International Monetary Fund (IMF) provides financial assistance to member countries facing balance of payments problems, often attaching specific conditions to ensure that the borrowing country implements policies aimed at resolving its economic challenges.

IMF assistance typically comes with conditionality, requiring countries to implement specific policy measures. These conditions often include structural reforms and quantitative performance criteria related to fiscal, monetary, and external policy outcomes. For example, in the case of Greece’s Stand-By Arrangement from 2010 to 2012, the IMF set conditions that included fiscal consolidation measures and structural reforms aimed at enhancing competitiveness and growth.

Hence statement 1 is correct

The PRGT is the IMF’s main vehicle for providing concessional financing to low-income countries (LICs), not middle-income countries. It offers interest-free loans to support LICs in implementing policies that foster macroeconomic stability and growth.

Hence statement 2 is Incorrect

As part of its conditionality framework, the IMF requires borrowing countries to implement policy reforms aimed at correcting macroeconomic imbalances. These reforms are intended to ensure that the country can repay the IMF and restore economic stability.

Hence statement 3 is correct

The IMF was established in 1944 during the United Nations Monetary and Financial Conference, commonly known as the Bretton Woods Conference, with the primary goal of reconstructing the international monetary system.

Hence statement 4 is correct

Solution: A

Hence statement 1 is correct

Hence statement 2 is Incorrect

Hence statement 3 is correct

Hence statement 4 is correct

• Question 7 of 30 7. Question 1 points With reference to the International Monetary Fund’s financial assistance programs, consider the following statements: The Stand-By Arrangement (SBA) is most frequently used by advanced and emerging market economies, whereas the Standby Credit Facility (SCF) is designed for low-income countries. The duration of assistance under Stand-By Arrangement typically covers 12-24 months but can extend up to 36 months. Disbursements under IMF’s Stand-By Arrangement are unconditional once approved, allowing countries complete autonomy in economic policy decisions. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The International Monetary Fund (IMF) offers various financial assistance programs to its member countries facing balance of payments problems. Two key facilities are the Stand-By Arrangement (SBA) and the Standby Credit Facility (SCF). The SBA is the IMF’s primary lending instrument for middle-income and advanced economies facing short-term balance of payments issues. In contrast, the SCF provides concessional financial assistance specifically tailored for low-income countries with short-term balance of payments needs. Hence statement 1 is correct SBAs are generally approved for periods ranging from 12 to 24 months. However, depending on the specific circumstances and financing needs of the member country, the duration can be extended up to 36 months. Hence statement 2 is correct Disbursements under an SBA are conditional upon the borrowing country’s adherence to specific policy measures and performance criteria agreed upon with the IMF. These conditions are designed to address the underlying economic issues and ensure that the country can restore balance of payments viability. Therefore, countries do not have complete autonomy in economic policy decisions under an SBA. Hence statement 3 is incorrect Incorrect Solution: B The International Monetary Fund (IMF) offers various financial assistance programs to its member countries facing balance of payments problems. Two key facilities are the Stand-By Arrangement (SBA) and the Standby Credit Facility (SCF). The SBA is the IMF’s primary lending instrument for middle-income and advanced economies facing short-term balance of payments issues. In contrast, the SCF provides concessional financial assistance specifically tailored for low-income countries with short-term balance of payments needs. Hence statement 1 is correct SBAs are generally approved for periods ranging from 12 to 24 months. However, depending on the specific circumstances and financing needs of the member country, the duration can be extended up to 36 months. Hence statement 2 is correct Disbursements under an SBA are conditional upon the borrowing country’s adherence to specific policy measures and performance criteria agreed upon with the IMF. These conditions are designed to address the underlying economic issues and ensure that the country can restore balance of payments viability. Therefore, countries do not have complete autonomy in economic policy decisions under an SBA. Hence statement 3 is incorrect

#### 7. Question

With reference to the International Monetary Fund’s financial assistance programs, consider the following statements:

• The Stand-By Arrangement (SBA) is most frequently used by advanced and emerging market economies, whereas the Standby Credit Facility (SCF) is designed for low-income countries.

• The duration of assistance under Stand-By Arrangement typically covers 12-24 months but can extend up to 36 months.

• Disbursements under IMF’s Stand-By Arrangement are unconditional once approved, allowing countries complete autonomy in economic policy decisions.

How many of the statements given above are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

The International Monetary Fund (IMF) offers various financial assistance programs to its member countries facing balance of payments problems. Two key facilities are the Stand-By Arrangement (SBA) and the Standby Credit Facility (SCF).

The SBA is the IMF’s primary lending instrument for middle-income and advanced economies facing short-term balance of payments issues. In contrast, the SCF provides concessional financial assistance specifically tailored for low-income countries with short-term balance of payments needs.

Hence statement 1 is correct

SBAs are generally approved for periods ranging from 12 to 24 months. However, depending on the specific circumstances and financing needs of the member country, the duration can be extended up to 36 months.

Hence statement 2 is correct

Disbursements under an SBA are conditional upon the borrowing country’s adherence to specific policy measures and performance criteria agreed upon with the IMF. These conditions are designed to address the underlying economic issues and ensure that the country can restore balance of payments viability. Therefore, countries do not have complete autonomy in economic policy decisions under an SBA.

Hence statement 3 is incorrect

Solution: B

Hence statement 1 is correct

Hence statement 2 is correct

Hence statement 3 is incorrect

• Question 8 of 30 8. Question 1 points With reference to non-discrimination principles in international trade, consider the following statements: De facto discrimination occurs when unequal treatment cannot be recognized directly through words or in legal instruments but exists in practice. The WTO enforcement mechanism allows the organization to collectively impose sanctions on countries that violate MFN principles. A country providing MFN status to another country has to provide concessions, privileges, and immunity in trade agreements to that country. How many of the statements given above are *not correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Non-discrimination stands as a fundamental cornerstone of the modern international trading system. Established through the General Agreement on Tariffs and Trade (GATT) and later reinforced by the World Trade Organization (WTO), non-discrimination principles aim to ensure fair treatment among trading partners. The Most-Favoured-Nation (MFN) clause and national treatment provisions work together to prevent countries from creating unfair advantages for specific trading partners or domestic products. De facto discrimination refers to situations where, despite neutral wording in laws or agreements, discriminatory effects occur in practice. For example, a country might implement regulations that, while seemingly neutral, disproportionately affect imports from certain nations, leading to unintended discrimination. Hence statement 1 is correct The World Trade Organization (WTO) does not have the authority to impose sanctions collectively. Instead, it provides a dispute settlement mechanism where member countries can bring complaints against others, they believe are violating trade agreements, including the Most-Favoured-Nation (MFN) principle. If the Dispute Settlement Body (DSB) rules in favour of the complainant and the offending country does not comply with the recommendations, the complainant may be authorized to take retaliatory measures, such as imposing tariffs, but these actions are taken by the member country, not collectively by the WTO. Hence statement 2 is incorrect The Most-Favoured-Nation (MFN) principle requires that any favourable treatment granted to one trading partner must be extended to all other WTO members. It does not involve providing specific concessions, privileges, or immunity to a particular country but ensures equal treatment among all trading partners. Hence statement 3 is incorrect Incorrect Solution: B Non-discrimination stands as a fundamental cornerstone of the modern international trading system. Established through the General Agreement on Tariffs and Trade (GATT) and later reinforced by the World Trade Organization (WTO), non-discrimination principles aim to ensure fair treatment among trading partners. The Most-Favoured-Nation (MFN) clause and national treatment provisions work together to prevent countries from creating unfair advantages for specific trading partners or domestic products. De facto discrimination refers to situations where, despite neutral wording in laws or agreements, discriminatory effects occur in practice. For example, a country might implement regulations that, while seemingly neutral, disproportionately affect imports from certain nations, leading to unintended discrimination. Hence statement 1 is correct The World Trade Organization (WTO) does not have the authority to impose sanctions collectively. Instead, it provides a dispute settlement mechanism where member countries can bring complaints against others, they believe are violating trade agreements, including the Most-Favoured-Nation (MFN) principle. If the Dispute Settlement Body (DSB) rules in favour of the complainant and the offending country does not comply with the recommendations, the complainant may be authorized to take retaliatory measures, such as imposing tariffs, but these actions are taken by the member country, not collectively by the WTO. Hence statement 2 is incorrect The Most-Favoured-Nation (MFN) principle requires that any favourable treatment granted to one trading partner must be extended to all other WTO members. It does not involve providing specific concessions, privileges, or immunity to a particular country but ensures equal treatment among all trading partners. Hence statement 3 is incorrect*

#### 8. Question

With reference to non-discrimination principles in international trade, consider the following statements:

• De facto discrimination occurs when unequal treatment cannot be recognized directly through words or in legal instruments but exists in practice.

• The WTO enforcement mechanism allows the organization to collectively impose sanctions on countries that violate MFN principles.

• A country providing MFN status to another country has to provide concessions, privileges, and immunity in trade agreements to that country.

How many of the statements given above are *not correct*?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

Non-discrimination stands as a fundamental cornerstone of the modern international trading system. Established through the General Agreement on Tariffs and Trade (GATT) and later reinforced by the World Trade Organization (WTO), non-discrimination principles aim to ensure fair treatment among trading partners. The Most-Favoured-Nation (MFN) clause and national treatment provisions work together to prevent countries from creating unfair advantages for specific trading partners or domestic products.

De facto discrimination refers to situations where, despite neutral wording in laws or agreements, discriminatory effects occur in practice. For example, a country might implement regulations that, while seemingly neutral, disproportionately affect imports from certain nations, leading to unintended discrimination.

Hence statement 1 is correct

The World Trade Organization (WTO) does not have the authority to impose sanctions collectively. Instead, it provides a dispute settlement mechanism where member countries can bring complaints against others, they believe are violating trade agreements, including the Most-Favoured-Nation (MFN) principle. If the Dispute Settlement Body (DSB) rules in favour of the complainant and the offending country does not comply with the recommendations, the complainant may be authorized to take retaliatory measures, such as imposing tariffs, but these actions are taken by the member country, not collectively by the WTO.

Hence statement 2 is incorrect

The Most-Favoured-Nation (MFN) principle requires that any favourable treatment granted to one trading partner must be extended to all other WTO members. It does not involve providing specific concessions, privileges, or immunity to a particular country but ensures equal treatment among all trading partners.

Hence statement 3 is incorrect

Solution: B

Hence statement 1 is correct

Hence statement 2 is incorrect

Hence statement 3 is incorrect

• Question 9 of 30 9. Question 1 points Which of the following conditions is NOT necessary for profitable triangular arbitrage in currency markets? a) Discrepancy between the direct exchange rate and cross-exchange rate through a third currency b) Ability to execute all currency transactions simultaneously to prevent market corrections c) Central bank intervention in at least one of the currency pairs d) Sufficient trade volume to generate meaningful profit relative to transaction costs Correct Solution: C Triangular arbitrage is a sophisticated trading strategy that exploits pricing inefficiencies between three different currencies in the foreign exchange market. This strategy involves executing three consecutive currency exchanges, beginning with one currency and ending with the same currency, aiming to capitalize on exchange rate discrepancies to generate risk-free profit. These opportunities arise when the direct exchange rate between two currencies differs from the implied cross-exchange rate calculated through a third currency. While central bank interventions can influence currency values, triangular arbitrage opportunities arise from discrepancies in exchange rates, regardless of the cause. Arbitrage can occur without any central bank intervention. Hence, option (c) is correct Incorrect Solution: C Triangular arbitrage is a sophisticated trading strategy that exploits pricing inefficiencies between three different currencies in the foreign exchange market. This strategy involves executing three consecutive currency exchanges, beginning with one currency and ending with the same currency, aiming to capitalize on exchange rate discrepancies to generate risk-free profit. These opportunities arise when the direct exchange rate between two currencies differs from the implied cross-exchange rate calculated through a third currency. While central bank interventions can influence currency values, triangular arbitrage opportunities arise from discrepancies in exchange rates, regardless of the cause. Arbitrage can occur without any central bank intervention. Hence, option (c) is correct

#### 9. Question

Which of the following conditions is NOT necessary for profitable triangular arbitrage in currency markets?

• a) Discrepancy between the direct exchange rate and cross-exchange rate through a third currency

• b) Ability to execute all currency transactions simultaneously to prevent market corrections

• c) Central bank intervention in at least one of the currency pairs

• d) Sufficient trade volume to generate meaningful profit relative to transaction costs

Solution: C

Triangular arbitrage is a sophisticated trading strategy that exploits pricing inefficiencies between three different currencies in the foreign exchange market. This strategy involves executing three consecutive currency exchanges, beginning with one currency and ending with the same currency, aiming to capitalize on exchange rate discrepancies to generate risk-free profit. These opportunities arise when the direct exchange rate between two currencies differs from the implied cross-exchange rate calculated through a third currency.

While central bank interventions can influence currency values, triangular arbitrage opportunities arise from discrepancies in exchange rates, regardless of the cause. Arbitrage can occur without any central bank intervention.

Hence, option (c) is correct

Solution: C

Hence, option (c) is correct

• Question 10 of 30 10. Question 1 points Which of the following best explains why the J-curve effect occurs in a country’s trade balance following currency depreciation? a) Initial speculative capital inflows followed by gradual outflows as the currency stabilizes b) Short-term contracts being denominated in foreign currencies while long-term contracts are in domestic currency c) Short-run inelastic demand for imports and exports, followed by increased elasticity over time as economic agents adjust d) Immediate increase in export volumes offset by delayed adjustment in import prices Correct Solution: C The J-curve effect describes the initial deterioration followed by a subsequent improvement in a country’s trade balance after a currency depreciation. This phenomenon occurs due to the time it takes for trade volumes to adjust to new exchange rate conditions. Immediately after a currency depreciates, the prices of imports rise, making them more expensive in domestic currency terms. However, the quantities of imports and exports often remain relatively unchanged in the short run because consumers and businesses need time to adjust their purchasing habits and find alternative suppliers or markets. This inelastic response means that the total value of imports (in domestic currency) increases, while export revenues (in foreign currency) do not immediately rise proportionally, leading to a worsening trade balance. Over time, as consumers and businesses adjust to the new price levels, the demand for imports decreases due to their higher cost, and foreign demand for the now cheaper exports increases. This adjustment leads to a higher volume of exports and a lower volume of imports, thereby improving the trade balance. It is not necessary for profitable triangular arbitrage. Hence, option (c) is correct Incorrect Solution: C The J-curve effect describes the initial deterioration followed by a subsequent improvement in a country’s trade balance after a currency depreciation. This phenomenon occurs due to the time it takes for trade volumes to adjust to new exchange rate conditions. Immediately after a currency depreciates, the prices of imports rise, making them more expensive in domestic currency terms. However, the quantities of imports and exports often remain relatively unchanged in the short run because consumers and businesses need time to adjust their purchasing habits and find alternative suppliers or markets. This inelastic response means that the total value of imports (in domestic currency) increases, while export revenues (in foreign currency) do not immediately rise proportionally, leading to a worsening trade balance. Over time, as consumers and businesses adjust to the new price levels, the demand for imports decreases due to their higher cost, and foreign demand for the now cheaper exports increases. This adjustment leads to a higher volume of exports and a lower volume of imports, thereby improving the trade balance. It is not necessary for profitable triangular arbitrage. Hence, option (c) is correct

#### 10. Question

Which of the following best explains why the J-curve effect occurs in a country’s trade balance following currency depreciation?

• a) Initial speculative capital inflows followed by gradual outflows as the currency stabilizes

• b) Short-term contracts being denominated in foreign currencies while long-term contracts are in domestic currency

• c) Short-run inelastic demand for imports and exports, followed by increased elasticity over time as economic agents adjust

• d) Immediate increase in export volumes offset by delayed adjustment in import prices

Solution: C

The J-curve effect describes the initial deterioration followed by a subsequent improvement in a country’s trade balance after a currency depreciation. This phenomenon occurs due to the time it takes for trade volumes to adjust to new exchange rate conditions.

Immediately after a currency depreciates, the prices of imports rise, making them more expensive in domestic currency terms. However, the quantities of imports and exports often remain relatively unchanged in the short run because consumers and businesses need time to adjust their purchasing habits and find alternative suppliers or markets. This inelastic response means that the total value of imports (in domestic currency) increases, while export revenues (in foreign currency) do not immediately rise proportionally, leading to a worsening trade balance.

Over time, as consumers and businesses adjust to the new price levels, the demand for imports decreases due to their higher cost, and foreign demand for the now cheaper exports increases. This adjustment leads to a higher volume of exports and a lower volume of imports, thereby improving the trade balance. It is not necessary for profitable triangular arbitrage.

Hence, option (c) is correct

Solution: C

Hence, option (c) is correct

• Question 11 of 30 11. Question 1 points Consider the following statements : Statement – I : Sugar Mills are legally bound to pay the minimum support price to farmers for procurement of sugarcane. Statement – II : The sugarcane pricing is governed under Sugarcane Control Order 1966 issued under the Essential Commodities Act 1955 Which of the following is correct in respect of the above statements ? (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I (c) Statement- I is correct but Statement -II is incorrect (d) Statement- I is incorrect but Statement -II is correct Correct Solution : A Minimum support price for a crop is the price at which the government is supposed to procure that crop from farmers if the market price falls below. It ensures that farmers receive a certain minimum remuneration for cultivation crops recovery MSP does not have any statutory or legal backing. Sugarcane is the only crop where MSP payment has some statutory backing ; this is due to its pricing being governed by the Sugarcane Control Order 1966 issued under the Essential Commodities Act 1955 Sugar Mills must legally pay this price to the sugarcane farmers for procurement ; the responsibility to make fair and remunerative price payment to farmers within 14 days of cane purchase lies solely with the sugar Mills. Hence statements 1 and 2 are correct and statement 2 correctly explains statement 1. Incorrect Solution : A Minimum support price for a crop is the price at which the government is supposed to procure that crop from farmers if the market price falls below. It ensures that farmers receive a certain minimum remuneration for cultivation crops recovery MSP does not have any statutory or legal backing. Sugarcane is the only crop where MSP payment has some statutory backing ; this is due to its pricing being governed by the Sugarcane Control Order 1966 issued under the Essential Commodities Act 1955 Sugar Mills must legally pay this price to the sugarcane farmers for procurement ; the responsibility to make fair and remunerative price payment to farmers within 14 days of cane purchase lies solely with the sugar Mills. Hence statements 1 and 2 are correct and statement 2 correctly explains statement 1.

#### 11. Question

Consider the following statements :

Statement – I :

Sugar Mills are legally bound to pay the minimum support price to farmers for procurement of sugarcane.

Statement – II :

The sugarcane pricing is governed under Sugarcane Control Order 1966 issued under the Essential Commodities Act 1955

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

• (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I

• (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I

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

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

Solution : A

• Minimum support price for a crop is the price at which the government is supposed to procure that crop from farmers if the market price falls below.

• It ensures that farmers receive a certain minimum remuneration for cultivation crops recovery

• MSP does not have any statutory or legal backing.

• Sugarcane is the only crop where MSP payment has some statutory backing ; this is due to its pricing being governed by the Sugarcane Control Order 1966 issued under the Essential Commodities Act 1955

• Sugar Mills must legally pay this price to the sugarcane farmers for procurement ; the responsibility to make fair and remunerative price payment to farmers within 14 days of cane purchase lies solely with the sugar Mills.

Hence statements 1 and 2 are correct and statement 2 correctly explains statement 1.

Solution : A

• Minimum support price for a crop is the price at which the government is supposed to procure that crop from farmers if the market price falls below.

• It ensures that farmers receive a certain minimum remuneration for cultivation crops recovery

• MSP does not have any statutory or legal backing.

Hence statements 1 and 2 are correct and statement 2 correctly explains statement 1.

• Question 12 of 30 12. Question 1 points Consider the following statements regarding World Gold Council : Countries without gold mines are not eligible to become its member. It is responsible for fixing International gold price. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: D The World Gold Council has 32 members which are not countries but some of the world’s most forward thinking Gold mining companies. These mining companies are headquartered across the world and have mining operations in over 45 countries. The World Gold Council is a membership organisation that promotes the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Hence statement 1 is incorrect Gold prices are set by several banks, an oversight committee and a panel of internal and external chair members who calculate the figures based on supply and demand in the gold futures derivative market and establish averages for both the spot price and the fixed price. The London gold fixing is the setting of the price of gold that takes place via a dedicated conference line. The World Gold Council is not responsible for fixing price of gold Internationally. Hence statement 2 is incorrect Incorrect Solution: D The World Gold Council has 32 members which are not countries but some of the world’s most forward thinking Gold mining companies. These mining companies are headquartered across the world and have mining operations in over 45 countries. The World Gold Council is a membership organisation that promotes the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Hence statement 1 is incorrect Gold prices are set by several banks, an oversight committee and a panel of internal and external chair members who calculate the figures based on supply and demand in the gold futures derivative market and establish averages for both the spot price and the fixed price. The London gold fixing is the setting of the price of gold that takes place via a dedicated conference line. The World Gold Council is not responsible for fixing price of gold Internationally. Hence statement 2 is incorrect

#### 12. Question

Consider the following statements regarding World Gold Council :

• Countries without gold mines are not eligible to become its member.

• It is responsible for fixing International gold price.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: D

• The World Gold Council has 32 members which are not countries but some of the world’s most forward thinking Gold mining companies.

• These mining companies are headquartered across the world and have mining operations in over 45 countries.

• The World Gold Council is a membership organisation that promotes the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain.

Hence statement 1 is incorrect

• Gold prices are set by several banks, an oversight committee and a panel of internal and external chair members who calculate the figures based on supply and demand in the gold futures derivative market and establish averages for both the spot price and the fixed price.

• The London gold fixing is the setting of the price of gold that takes place via a dedicated conference line.

• The World Gold Council is not responsible for fixing price of gold Internationally.

Hence statement 2 is incorrect

Solution: D

• The World Gold Council has 32 members which are not countries but some of the world’s most forward thinking Gold mining companies.

• These mining companies are headquartered across the world and have mining operations in over 45 countries.

• The World Gold Council is a membership organisation that promotes the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain.

Hence statement 1 is incorrect

• The London gold fixing is the setting of the price of gold that takes place via a dedicated conference line.

• The World Gold Council is not responsible for fixing price of gold Internationally.

Hence statement 2 is incorrect

• Question 13 of 30 13. Question 1 points Consider the following statements regarding Bharat Trade Net : It is a Digital Public Infrastructure for financing solutions in international trade. It is a part of India Stack and integrates customs, Goods and Services Tax Network (GSTN) and banks into a unified platform. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C Union finance minister Nirmala Sitaraman announced the setting up of a Digital Public Infrastructure for trade documentation and financing solutions in international trade. This DPI platform named Bharat Trade Net, will compliment unified logistics platform; it will be aligned with international practices. It will be a unified platform for financing solutions and be a part of India Stack, which includes UPI, Aadhaar and Digilocker. It aims to eliminate paper based processes by integrating key stakeholders such as the customs, GSTN, banks and exporters into a unified digital platform. Hence statements 1 and 2 are correct Incorrect Solution: C Union finance minister Nirmala Sitaraman announced the setting up of a Digital Public Infrastructure for trade documentation and financing solutions in international trade. This DPI platform named Bharat Trade Net, will compliment unified logistics platform; it will be aligned with international practices. It will be a unified platform for financing solutions and be a part of India Stack, which includes UPI, Aadhaar and Digilocker. It aims to eliminate paper based processes by integrating key stakeholders such as the customs, GSTN, banks and exporters into a unified digital platform. Hence statements 1 and 2 are correct

#### 13. Question

Consider the following statements regarding Bharat Trade Net :

• It is a Digital Public Infrastructure for financing solutions in international trade.

• It is a part of India Stack and integrates customs, Goods and Services Tax Network (GSTN) and banks into a unified platform.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• Union finance minister Nirmala Sitaraman announced the setting up of a Digital Public Infrastructure for trade documentation and financing solutions in international trade.

• This DPI platform named Bharat Trade Net, will compliment unified logistics platform; it will be aligned with international practices.

• It will be a unified platform for financing solutions and be a part of India Stack, which includes UPI, Aadhaar and Digilocker.

• It aims to eliminate paper based processes by integrating key stakeholders such as the customs, GSTN, banks and exporters into a unified digital platform.

Hence statements 1 and 2 are correct

Solution: C

• Union finance minister Nirmala Sitaraman announced the setting up of a Digital Public Infrastructure for trade documentation and financing solutions in international trade.

• This DPI platform named Bharat Trade Net, will compliment unified logistics platform; it will be aligned with international practices.

• It will be a unified platform for financing solutions and be a part of India Stack, which includes UPI, Aadhaar and Digilocker.

• It aims to eliminate paper based processes by integrating key stakeholders such as the customs, GSTN, banks and exporters into a unified digital platform.

Hence statements 1 and 2 are correct

• Question 14 of 30 14. Question 1 points Consider the following statements : The Special Window for Affordable and Mid- Income Housing (SWAMIH) Fund is intended for families paying EMI on housing loans as well as rent for present dwelling unit. The SWAMIH Fund 2 aims to built ten lakh housing units within a five year period. It is managed by the Housing and Urban Development Cooperation. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 3 only (d) 1, 2 and 3 Correct Solution: A The Special Window for Affordable and Mid income Housing Fund originally introduced in 2019 to provide priority debt financing for the completion of stalled residential projects. The SWAMIH Fund 2 launch at the union budget 2025 aims at helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units. Hence statement 1 is correct The SWAMIH Fund 2 will be established with Rs.15000 crore allocation to help complete an additional one lakh housing units. Under the original fund 50000 dwelling units in stressed housing projects have been completed and another 40,000 will be completed in 2025. Hence statement 2 is incorrect The SWAMIH Fund is managed by SBICAP Ventures Limited, a State Bank Group company. Hence statement 3 is incorrect Incorrect Solution: A The Special Window for Affordable and Mid income Housing Fund originally introduced in 2019 to provide priority debt financing for the completion of stalled residential projects. The SWAMIH Fund 2 launch at the union budget 2025 aims at helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units. Hence statement 1 is correct The SWAMIH Fund 2 will be established with Rs.15000 crore allocation to help complete an additional one lakh housing units. Under the original fund 50000 dwelling units in stressed housing projects have been completed and another 40,000 will be completed in 2025. Hence statement 2 is incorrect The SWAMIH Fund is managed by SBICAP Ventures Limited, a State Bank Group company. Hence statement 3 is incorrect

#### 14. Question

Consider the following statements :

• The Special Window for Affordable and Mid- Income Housing (SWAMIH) Fund is intended for families paying EMI on housing loans as well as rent for present dwelling unit.

• The SWAMIH Fund 2 aims to built ten lakh housing units within a five year period.

• It is managed by the Housing and Urban Development Cooperation.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 and 3 only

• (c) 3 only

• (d) 1, 2 and 3

Solution: A

• The Special Window for Affordable and Mid income Housing Fund originally introduced in 2019 to provide priority debt financing for the completion of stalled residential projects.

• The SWAMIH Fund 2 launch at the union budget 2025 aims at helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units.

Hence statement 1 is correct

• The SWAMIH Fund 2 will be established with Rs.15000 crore allocation to help complete an additional one lakh housing units.

• Under the original fund 50000 dwelling units in stressed housing projects have been completed and another 40,000 will be completed in 2025.

Hence statement 2 is incorrect

• The SWAMIH Fund is managed by SBICAP Ventures Limited, a State Bank Group company.

Hence statement 3 is incorrect

Solution: A

• The Special Window for Affordable and Mid income Housing Fund originally introduced in 2019 to provide priority debt financing for the completion of stalled residential projects.

• The SWAMIH Fund 2 launch at the union budget 2025 aims at helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units.

Hence statement 1 is correct

• The SWAMIH Fund 2 will be established with Rs.15000 crore allocation to help complete an additional one lakh housing units.

• Under the original fund 50000 dwelling units in stressed housing projects have been completed and another 40,000 will be completed in 2025.

Hence statement 2 is incorrect

• The SWAMIH Fund is managed by SBICAP Ventures Limited, a State Bank Group company.

Hence statement 3 is incorrect

• Question 15 of 30 15. Question 1 points Consider the following statements : Bihar accounts for more than 50% of makhana production of India. The Makhana Board has been set up in Bihar with an allocation of Rs 100 crore. The Makhana Board supports Farmer Producer Organisations in export oriented production. How of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C Makhana is the dried seed of the prickly water lily plant. It grows in freshwater bodies, ponds and wetlands across South and East Asia It is also called black diamond Bihar produces 90% of India’s makhana mainly in Darbhanga, Madhubani, Purnia, Katihar, Supaul, Araria, Kishanganj, etc. Hence statement 1 is correct Recently under the Union Budget 2025, the Makhana Board has been set up in Bihar The Board has been allocated Rs.100 crore to develop Makhana industry. Hence statement 2 is correct The main objectives of the Makhana Board include- Training farmers in export oriented production Support farmer producer organisations Attract investment in food processing unit Development of export infrastructure at Bihar airport Increasing production and improve farming techniques for the same. Hence statement 3 is correct Incorrect Solution: C Makhana is the dried seed of the prickly water lily plant. It grows in freshwater bodies, ponds and wetlands across South and East Asia It is also called black diamond Bihar produces 90% of India’s makhana mainly in Darbhanga, Madhubani, Purnia, Katihar, Supaul, Araria, Kishanganj, etc. Hence statement 1 is correct Recently under the Union Budget 2025, the Makhana Board has been set up in Bihar The Board has been allocated Rs.100 crore to develop Makhana industry. Hence statement 2 is correct The main objectives of the Makhana Board include- Training farmers in export oriented production Support farmer producer organisations Attract investment in food processing unit Development of export infrastructure at Bihar airport Increasing production and improve farming techniques for the same. Hence statement 3 is correct

#### 15. Question

Consider the following statements :

• Bihar accounts for more than 50% of makhana production of India.

• The Makhana Board has been set up in Bihar with an allocation of Rs 100 crore.

• The Makhana Board supports Farmer Producer Organisations in export oriented production.

How of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

• Makhana is the dried seed of the prickly water lily plant.

• It grows in freshwater bodies, ponds and wetlands across South and East Asia

• It is also called black diamond

• Bihar produces 90% of India’s makhana mainly in Darbhanga, Madhubani, Purnia, Katihar, Supaul, Araria, Kishanganj, etc.

Hence statement 1 is correct

• Recently under the Union Budget 2025, the Makhana Board has been set up in Bihar

• The Board has been allocated Rs.100 crore to develop Makhana industry.

Hence statement 2 is correct

The main objectives of the Makhana Board include-

• Training farmers in export oriented production

• Support farmer producer organisations

• Attract investment in food processing unit

• Development of export infrastructure at Bihar airport

• Increasing production and improve farming techniques for the same.

Hence statement 3 is correct

Solution: C

• Makhana is the dried seed of the prickly water lily plant.

• It grows in freshwater bodies, ponds and wetlands across South and East Asia

• It is also called black diamond

• Bihar produces 90% of India’s makhana mainly in Darbhanga, Madhubani, Purnia, Katihar, Supaul, Araria, Kishanganj, etc.

Hence statement 1 is correct

• Recently under the Union Budget 2025, the Makhana Board has been set up in Bihar

• The Board has been allocated Rs.100 crore to develop Makhana industry.

Hence statement 2 is correct

The main objectives of the Makhana Board include-

• Training farmers in export oriented production

• Support farmer producer organisations

• Attract investment in food processing unit

• Development of export infrastructure at Bihar airport

• Increasing production and improve farming techniques for the same.

Hence statement 3 is correct

• Question 16 of 30 16. Question 1 points Recently, the Global Soil Conference was in news; it is organised by : (a) The Energy and Resources Institute (b) Indian Society of Soil Science (c) Centre for Science and Environment (d) National Council of Applied Economic Research Correct Solution : B The Global Soil Conference was organised in 2024 by the Indian Society of Soil Science in collaboration with the International Union of Soil Sciences. The conference seeks to address challenges in sustainable soil and resource management. It aims to promote a global dialogue on how caring for soil can bring sustainability across various sectors in the economy. In the conference soil health was recognised as an urgent issue with soil degradation affecting productivity and posing a threat to global food security. Around 30% of India’s soil is reportedly compromised due to erosion, pollution, loss of organic carbon and salinity. The conference advocated the importance of international cooperation in dealing with soil erosion which aligns with Sustainable Development goal 15 (SDG15) of the United Nations. Hence option B is correct Incorrect Solution : B The Global Soil Conference was organised in 2024 by the Indian Society of Soil Science in collaboration with the International Union of Soil Sciences. The conference seeks to address challenges in sustainable soil and resource management. It aims to promote a global dialogue on how caring for soil can bring sustainability across various sectors in the economy. In the conference soil health was recognised as an urgent issue with soil degradation affecting productivity and posing a threat to global food security. Around 30% of India’s soil is reportedly compromised due to erosion, pollution, loss of organic carbon and salinity. The conference advocated the importance of international cooperation in dealing with soil erosion which aligns with Sustainable Development goal 15 (SDG15) of the United Nations. Hence option B is correct

#### 16. Question

Recently, the Global Soil Conference was in news; it is organised by :

• (a) The Energy and Resources Institute

• (b) Indian Society of Soil Science

• (c) Centre for Science and Environment

• (d) National Council of Applied Economic Research

Solution : B

• The Global Soil Conference was organised in 2024 by the Indian Society of Soil Science in collaboration with the International Union of Soil Sciences.

• The conference seeks to address challenges in sustainable soil and resource management.

• It aims to promote a global dialogue on how caring for soil can bring sustainability across various sectors in the economy.

• In the conference soil health was recognised as an urgent issue with soil degradation affecting productivity and posing a threat to global food security.

• Around 30% of India’s soil is reportedly compromised due to erosion, pollution, loss of organic carbon and salinity.

• The conference advocated the importance of international cooperation in dealing with soil erosion which aligns with Sustainable Development goal 15 (SDG15) of the United Nations.

Hence option B is correct

Solution : B

• The Global Soil Conference was organised in 2024 by the Indian Society of Soil Science in collaboration with the International Union of Soil Sciences.

• The conference seeks to address challenges in sustainable soil and resource management.

• It aims to promote a global dialogue on how caring for soil can bring sustainability across various sectors in the economy.

• In the conference soil health was recognised as an urgent issue with soil degradation affecting productivity and posing a threat to global food security.

• Around 30% of India’s soil is reportedly compromised due to erosion, pollution, loss of organic carbon and salinity.

• The conference advocated the importance of international cooperation in dealing with soil erosion which aligns with Sustainable Development goal 15 (SDG15) of the United Nations.

Hence option B is correct

• Question 17 of 30 17. Question 1 points Consider the following : Ready to eat millet muesli Mozzarella cheese Soyabean oil How many of the above are incentivised under the Production Linked Incentive (PLI) Scheme? (a) 1 and 2 only (b) 2 and 3 only (c) 1 only (d) 1, 2 and 3 Correct Solution: A The Product Linked Incentive scheme was introduced by the government in November 2020 in 14 key sectors including food processing sector for enhancing manufacturing capability and promotion of exports. This is a central sector scheme with an outlay of Rs. 10900 crore. The first component relates to incentivising manufacturing of four major food segments viz., Ready to cook/ Ready to eat foods including millet based products , Processed fruit and vegetables, Marine products and mozzarella cheese. Innovative organic products of SMEs including eggs, poultry, meat, egg products in these segments. Hence options 1 and 2 are correct Incorrect Solution: A The Product Linked Incentive scheme was introduced by the government in November 2020 in 14 key sectors including food processing sector for enhancing manufacturing capability and promotion of exports. This is a central sector scheme with an outlay of Rs. 10900 crore. The first component relates to incentivising manufacturing of four major food segments viz., Ready to cook/ Ready to eat foods including millet based products , Processed fruit and vegetables, Marine products and mozzarella cheese. Innovative organic products of SMEs including eggs, poultry, meat, egg products in these segments. Hence options 1 and 2 are correct

#### 17. Question

Consider the following :

• Ready to eat millet muesli

• Mozzarella cheese

• Soyabean oil

How many of the above are incentivised under the Production Linked Incentive (PLI) Scheme?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 only

• (d) 1, 2 and 3

Solution: A

• The Product Linked Incentive scheme was introduced by the government in November 2020 in 14 key sectors including food processing sector for enhancing manufacturing capability and promotion of exports.

• This is a central sector scheme with an outlay of Rs. 10900 crore.

• The first component relates to incentivising manufacturing of four major food segments viz., Ready to cook/ Ready to eat foods including millet based products , Processed fruit and vegetables, Marine products and mozzarella cheese.

• Innovative organic products of SMEs including eggs, poultry, meat, egg products in these segments.

Hence options 1 and 2 are correct

Solution: A

• This is a central sector scheme with an outlay of Rs. 10900 crore.

• Innovative organic products of SMEs including eggs, poultry, meat, egg products in these segments.

Hence options 1 and 2 are correct

• Question 18 of 30 18. Question 1 points Consider the following statements: Minimum Support Prices for agricultural crops are included under Green Box subsidies of the World Trade Organisation. That threshold value for Amber box subsidy is fixed at 10% value of agricultural production for developing countries. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: D All subsidies which are supposed to distort production and trade fall into the Amber box; that is all agricultural subsidies except those included in the Blue and Green boxes. These include government policies of minimum support price ( like MSP in India) for agricultural products or any help directly related to production quantities. Green box include agriculture subsidies which cause minimal or no distortions to trade; they must not involve price support. Hence statement 1 is incorrect Amber box subsidies are subject to limits; ‘De minimis ‘ minimal supports for both product specific and non product specific supports are allowed, defined as a share of the value of agricultural Production. This threshold is generally 5% of the value of agricultural production for developed countries 10% for most developing countries. Hence statement 2 is incorrect Incorrect Solution: D All subsidies which are supposed to distort production and trade fall into the Amber box; that is all agricultural subsidies except those included in the Blue and Green boxes. These include government policies of minimum support price ( like MSP in India) for agricultural products or any help directly related to production quantities. Green box include agriculture subsidies which cause minimal or no distortions to trade; they must not involve price support. Hence statement 1 is incorrect Amber box subsidies are subject to limits; ‘De minimis ‘ minimal supports for both product specific and non product specific supports are allowed, defined as a share of the value of agricultural Production. This threshold is generally 5% of the value of agricultural production for developed countries 10% for most developing countries. Hence statement 2 is incorrect

#### 18. Question

Consider the following statements:

• Minimum Support Prices for agricultural crops are included under Green Box subsidies of the World Trade Organisation.

• That threshold value for Amber box subsidy is fixed at 10% value of agricultural production for developing countries.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: D

• All subsidies which are supposed to distort production and trade fall into the Amber box; that is all agricultural subsidies except those included in the Blue and Green boxes.

• These include government policies of minimum support price ( like MSP in India) for agricultural products or any help directly related to production quantities.

• Green box include agriculture subsidies which cause minimal or no distortions to trade; they must not involve price support.

Hence statement 1 is incorrect

• Amber box subsidies are subject to limits; ‘De minimis ‘ minimal supports for both product specific and non product specific supports are allowed, defined as a share of the value of agricultural Production.

• This threshold is generally 5% of the value of agricultural production for developed countries 10% for most developing countries.

Hence statement 2 is incorrect

Solution: D

• All subsidies which are supposed to distort production and trade fall into the Amber box; that is all agricultural subsidies except those included in the Blue and Green boxes.

• These include government policies of minimum support price ( like MSP in India) for agricultural products or any help directly related to production quantities.

• Green box include agriculture subsidies which cause minimal or no distortions to trade; they must not involve price support.

Hence statement 1 is incorrect

• This threshold is generally 5% of the value of agricultural production for developed countries 10% for most developing countries.

Hence statement 2 is incorrect

• Question 19 of 30 19. Question 1 points Consider the following statements : Through the New Development Bank (NDB), BRICS Nations seeks to mobilize resources for infrastructure projects in Emerging Markets and Developing Countries. The Board of Governors is the highest decision making body with Governors nominated by each member country for two years in NDB. The Global Risk Report is published by the New Development Bank. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A The New Development Bank is a multilateral Development Bank established by Brazil, Russia, India, China and South Africa with the purpose of mobilising resources for infrastructure and sustainable development project in Emerging Markets and Developing Countries (EMDCs). NDB works to act as a catalyst in bridging the gap between availability of financial resources and the growing needs of the BRICS Nations as well as the EMDCs. Hence statement 1 is correct The Board of Governors is the highest decision making body of the New Development Bank. It consists of one Governor at the ministrial level and one alternate Governor appointed by each member country. All powers of the bank are vested in the Board of Governors. Hence statement 2 is incorrect The Global Risks Report is an annual publication of the World Economic Forum. It identifies and analysis the most significant risks facing the world. The report is based on the Global Risk Perception survey which gathers insights from experts around the world. Hence statement 3 is incorrect Incorrect Solution: A The New Development Bank is a multilateral Development Bank established by Brazil, Russia, India, China and South Africa with the purpose of mobilising resources for infrastructure and sustainable development project in Emerging Markets and Developing Countries (EMDCs). NDB works to act as a catalyst in bridging the gap between availability of financial resources and the growing needs of the BRICS Nations as well as the EMDCs. Hence statement 1 is correct The Board of Governors is the highest decision making body of the New Development Bank. It consists of one Governor at the ministrial level and one alternate Governor appointed by each member country. All powers of the bank are vested in the Board of Governors. Hence statement 2 is incorrect The Global Risks Report is an annual publication of the World Economic Forum. It identifies and analysis the most significant risks facing the world. The report is based on the Global Risk Perception survey which gathers insights from experts around the world. Hence statement 3 is incorrect

#### 19. Question

Consider the following statements :

• Through the New Development Bank (NDB), BRICS Nations seeks to mobilize resources for infrastructure projects in Emerging Markets and Developing Countries.

• The Board of Governors is the highest decision making body with Governors nominated by each member country for two years in NDB.

• The Global Risk Report is published by the New Development Bank.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

• The New Development Bank is a multilateral Development Bank established by Brazil, Russia, India, China and South Africa with the purpose of mobilising resources for infrastructure and sustainable development project in Emerging Markets and Developing Countries (EMDCs).

• NDB works to act as a catalyst in bridging the gap between availability of financial resources and the growing needs of the BRICS Nations as well as the EMDCs.

Hence statement 1 is correct

• The Board of Governors is the highest decision making body of the New Development Bank.

• It consists of one Governor at the ministrial level and one alternate Governor appointed by each member country.

• All powers of the bank are vested in the Board of Governors.

Hence statement 2 is incorrect

• The Global Risks Report is an annual publication of the World Economic Forum.

• It identifies and analysis the most significant risks facing the world.

• The report is based on the Global Risk Perception survey which gathers insights from experts around the world.

Hence statement 3 is incorrect

Solution: A

• NDB works to act as a catalyst in bridging the gap between availability of financial resources and the growing needs of the BRICS Nations as well as the EMDCs.

Hence statement 1 is correct

• The Board of Governors is the highest decision making body of the New Development Bank.

• It consists of one Governor at the ministrial level and one alternate Governor appointed by each member country.

• All powers of the bank are vested in the Board of Governors.

Hence statement 2 is incorrect

• The Global Risks Report is an annual publication of the World Economic Forum.

• It identifies and analysis the most significant risks facing the world.

• The report is based on the Global Risk Perception survey which gathers insights from experts around the world.

Hence statement 3 is incorrect

• Question 20 of 30 20. Question 1 points Consider the following statements : Statement – I : Seed Cotton is purchased by the Cotton Corporation of India in competition with private buyers. Statement – II : The Cotton Corporation of India procures seed cotton through auction conducted by the Agricultural Produce Market Committee under Minimum Support Price operations. Which of the following is correct in respect of the above statements ? (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I (c) Statement- I is correct but Statement -II is incorrect (d) Statement- I is incorrect but Statement -II is correct Correct Solution : B Hence statement 1 is correct As a premier Organisation in public sector and engaged in marketing of cotton the CCI act as a role model in the procurement of seed cotton or kapas through auction conducted by the APMCs in the notified market yards. CCI officials attend these auctions regularly from day one of the arrival and remain present throughout the season till viable arrivals last in the market. All these purchases are made either under minimum support price operations or under commercial operations. Regular presence as well as regular purchases made by the CCI in these auction markets help in creating a competitive environment to the advantage of cotton farmers in realising price in commensurate in quality Of their kapas produce. All kapas quantities are purchased in the auction and in competition with private buyers, traders and mills under close supervision of APMC officials. The Cotton Corporation of India was first established in 1970 under the administrative control of Ministry of Textiles as a public sector undertaking under the Companies Act 1956. The major role of CCI is to undertake price support operations whenever the market prices of kapas fall below the minimum support price announced by the government without any quantitative limit. Hence statements 1 and 2 is correct but statement 2 does not explain Statement 1. Incorrect Solution : B Hence statement 1 is correct As a premier Organisation in public sector and engaged in marketing of cotton the CCI act as a role model in the procurement of seed cotton or kapas through auction conducted by the APMCs in the notified market yards. CCI officials attend these auctions regularly from day one of the arrival and remain present throughout the season till viable arrivals last in the market. All these purchases are made either under minimum support price operations or under commercial operations. Regular presence as well as regular purchases made by the CCI in these auction markets help in creating a competitive environment to the advantage of cotton farmers in realising price in commensurate in quality Of their kapas produce. All kapas quantities are purchased in the auction and in competition with private buyers, traders and mills under close supervision of APMC officials. The Cotton Corporation of India was first established in 1970 under the administrative control of Ministry of Textiles as a public sector undertaking under the Companies Act 1956. The major role of CCI is to undertake price support operations whenever the market prices of kapas fall below the minimum support price announced by the government without any quantitative limit. Hence statements 1 and 2 is correct but statement 2 does not explain Statement 1.

#### 20. Question

Consider the following statements :

Statement – I :

Seed Cotton is purchased by the Cotton Corporation of India in competition with private buyers.

Statement – II :

The Cotton Corporation of India procures seed cotton through auction conducted by the Agricultural Produce Market Committee under Minimum Support Price operations.

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

• (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I

• (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I

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

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

Solution : B

Hence statement 1 is correct

• As a premier Organisation in public sector and engaged in marketing of cotton the CCI act as a role model in the procurement of seed cotton or kapas through auction conducted by the APMCs in the notified market yards.

• CCI officials attend these auctions regularly from day one of the arrival and remain present throughout the season till viable arrivals last in the market.

• All these purchases are made either under minimum support price operations or under commercial operations.

• Regular presence as well as regular purchases made by the CCI in these auction markets help in creating a competitive environment to the advantage of cotton farmers in realising price in commensurate in quality Of their kapas produce.

• All kapas quantities are purchased in the auction and in competition with private buyers, traders and mills under close supervision of APMC officials.

The Cotton Corporation of India was first established in 1970 under the administrative control of Ministry of Textiles as a public sector undertaking under the Companies Act 1956.

The major role of CCI is to undertake price support operations whenever the market prices of kapas fall below the minimum support price announced by the government without any quantitative limit.

Hence statements 1 and 2 is correct but statement 2 does not explain Statement 1.

Solution : B

Hence statement 1 is correct

• CCI officials attend these auctions regularly from day one of the arrival and remain present throughout the season till viable arrivals last in the market.

• All these purchases are made either under minimum support price operations or under commercial operations.

• All kapas quantities are purchased in the auction and in competition with private buyers, traders and mills under close supervision of APMC officials.

The Cotton Corporation of India was first established in 1970 under the administrative control of Ministry of Textiles as a public sector undertaking under the Companies Act 1956.

The major role of CCI is to undertake price support operations whenever the market prices of kapas fall below the minimum support price announced by the government without any quantitative limit.

Hence statements 1 and 2 is correct but statement 2 does not explain Statement 1.

• Question 21 of 30 21. Question 1 points With reference to the National Human Rights Commission (NHRC), consider the following statements National Human Rights Commission is a constitutional body The Chairperson and members of NHRC are appointed by the President of India on the recommendation of a committee headed by the Prime Minister. NHRC has the powers of a civil court under the Code of Civil Procedure, 1908. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, and 3 Correct Solution: B National Human Rights Commission (NHRC): NHRC is a statutory body established under the Protection of Human Rights Act (PHRA), 1993, amended in 2006 and 2019. Headquarters: New Delhi Definition of Human Rights under PHRA: Rights related to life, liberty, equality, and dignity, as guaranteed by the Constitution or International Covenants, and enforceable by Indian courts. Appointment & Tenure Chairperson and members are appointed by the President of India on the recommendation of a committee headed by the Prime Minister, including: Speaker of Lok Sabha Minister of Home Affairs Leader of Opposition in Lok Sabha and Rajya Sabha Deputy Chairman of Rajya Sabha Tenure: 3 years or till the age of 70 years, whichever is earlier. Eligible for reappointment. Removal: The President can remove members for misbehaviour or incapacity after consulting the Supreme Court. Powers of NHRC Has powers of a civil court under the Code of Civil Procedure, 1908, including: Summoning and examining witnesses under oath Discovery and production of documents Receiving evidence on affidavits Requisitioning public records from courts/offices Issuing commissions for witness/document examination https://timesofindia.indiatimes.com/city/bhubaneswar/nhrc-issues-notice-to-govt-on-custodial-death-row/articleshow/110805368.cms Incorrect Solution: B National Human Rights Commission (NHRC): NHRC is a statutory body established under the Protection of Human Rights Act (PHRA), 1993, amended in 2006 and 2019. Headquarters: New Delhi Definition of Human Rights under PHRA: Rights related to life, liberty, equality, and dignity, as guaranteed by the Constitution or International Covenants, and enforceable by Indian courts. Appointment & Tenure Chairperson and members are appointed by the President of India on the recommendation of a committee headed by the Prime Minister, including: Speaker of Lok Sabha Minister of Home Affairs Leader of Opposition in Lok Sabha and Rajya Sabha Deputy Chairman of Rajya Sabha Tenure: 3 years or till the age of 70 years, whichever is earlier. Eligible for reappointment. Removal: The President can remove members for misbehaviour or incapacity after consulting the Supreme Court. Powers of NHRC Has powers of a civil court under the Code of Civil Procedure, 1908, including: Summoning and examining witnesses under oath Discovery and production of documents Receiving evidence on affidavits Requisitioning public records from courts/offices Issuing commissions for witness/document examination https://timesofindia.indiatimes.com/city/bhubaneswar/nhrc-issues-notice-to-govt-on-custodial-death-row/articleshow/110805368.cms

#### 21. Question

With reference to the National Human Rights Commission (NHRC), consider the following statements

• National Human Rights Commission is a constitutional body

• The Chairperson and members of NHRC are appointed by the President of India on the recommendation of a committee headed by the Prime Minister.

• NHRC has the powers of a civil court under the Code of Civil Procedure, 1908.

Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2, and 3

Solution: B

National Human Rights Commission (NHRC):

• NHRC is a statutory body established under the Protection of Human Rights Act (PHRA), 1993, amended in 2006 and 2019.

• Headquarters: New Delhi

• Definition of Human Rights under PHRA: Rights related to life, liberty, equality, and dignity, as guaranteed by the Constitution or International Covenants, and enforceable by Indian courts.

Appointment & Tenure

• Chairperson and members are appointed by the President of India on the recommendation of a committee headed by the Prime Minister, including: Speaker of Lok Sabha Minister of Home Affairs Leader of Opposition in Lok Sabha and Rajya Sabha Deputy Chairman of Rajya Sabha

• Speaker of Lok Sabha

• Minister of Home Affairs

• Leader of Opposition in Lok Sabha and Rajya Sabha

• Deputy Chairman of Rajya Sabha

• Tenure: 3 years or till the age of 70 years, whichever is earlier. Eligible for reappointment.

• Removal: The President can remove members for misbehaviour or incapacity after consulting the Supreme Court.

Powers of NHRC

• Has powers of a civil court under the Code of Civil Procedure, 1908, including: Summoning and examining witnesses under oath Discovery and production of documents Receiving evidence on affidavits Requisitioning public records from courts/offices Issuing commissions for witness/document examination

• Summoning and examining witnesses under oath

• Discovery and production of documents

• Receiving evidence on affidavits

• Requisitioning public records from courts/offices

• Issuing commissions for witness/document examination

https://timesofindia.indiatimes.com/city/bhubaneswar/nhrc-issues-notice-to-govt-on-custodial-death-row/articleshow/110805368.cms

Solution: B

National Human Rights Commission (NHRC):

• NHRC is a statutory body established under the Protection of Human Rights Act (PHRA), 1993, amended in 2006 and 2019.

• Headquarters: New Delhi

Appointment & Tenure

• Speaker of Lok Sabha

• Minister of Home Affairs

• Leader of Opposition in Lok Sabha and Rajya Sabha

• Deputy Chairman of Rajya Sabha

• Tenure: 3 years or till the age of 70 years, whichever is earlier. Eligible for reappointment.

• Removal: The President can remove members for misbehaviour or incapacity after consulting the Supreme Court.

Powers of NHRC

• Summoning and examining witnesses under oath

• Discovery and production of documents

• Receiving evidence on affidavits

• Requisitioning public records from courts/offices

• Issuing commissions for witness/document examination

https://timesofindia.indiatimes.com/city/bhubaneswar/nhrc-issues-notice-to-govt-on-custodial-death-row/articleshow/110805368.cms

• Question 22 of 30 22. Question 1 points Consider the following statements Statement-I: The Montreal Protocol, adopted in 1987, is an international treaty aimed at phasing out ozone-depleting substances (ODS) under the framework of the Vienna Convention. Statement-II: The Kigali Amendment to the Montreal Protocol, which came into effect in 2019, seeks to phase out Hydrochlorofluorocarbons (HCFCs), which are ozone-depleting substances. 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, but 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 Solution: C Montreal Protocol: The Montreal Protocol, enacted in 1987, is a global treaty designed to phase out the production and use of ozone-depleting substances (ODS). This treaty operates under the framework of the Vienna Convention (adopted in 1985). A significant addition to the Protocol came with the adoption of the Kigali Amendment in 2016, which became effective in 2019. This amendment specifically targets the reduction of Hydrofluorocarbons (HFCs), which serve as non-ODS alternatives to previously phased-out substances like Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs). The Kigali Amendment (2016, effective 2019) does not target HCFCs (which were already being phased out under earlier amendments). Instead, it focuses on reducing Hydrofluorocarbons (HFCs), which are non-ozone-depleting substances but contribute to global warming. https://www.nature.com/articles/s41558-024-02038-7 Incorrect Solution: C Montreal Protocol: The Montreal Protocol, enacted in 1987, is a global treaty designed to phase out the production and use of ozone-depleting substances (ODS). This treaty operates under the framework of the Vienna Convention (adopted in 1985). A significant addition to the Protocol came with the adoption of the Kigali Amendment in 2016, which became effective in 2019. This amendment specifically targets the reduction of Hydrofluorocarbons (HFCs), which serve as non-ODS alternatives to previously phased-out substances like Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs). The Kigali Amendment (2016, effective 2019) does not target HCFCs (which were already being phased out under earlier amendments). Instead, it focuses on reducing Hydrofluorocarbons (HFCs), which are non-ozone-depleting substances but contribute to global warming. https://www.nature.com/articles/s41558-024-02038-7

#### 22. Question

Consider the following statements

Statement-I:

The Montreal Protocol, adopted in 1987, is an international treaty aimed at phasing out ozone-depleting substances (ODS) under the framework of the Vienna Convention.

Statement-II:

The Kigali Amendment to the Montreal Protocol, which came into effect in 2019, seeks to phase out Hydrochlorofluorocarbons (HCFCs), which are ozone-depleting substances.

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, but 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.

Solution: C

Montreal Protocol:

• The Montreal Protocol, enacted in 1987, is a global treaty designed to phase out the production and use of ozone-depleting substances (ODS).

• This treaty operates under the framework of the Vienna Convention (adopted in 1985). A significant addition to the Protocol came with the adoption of the Kigali Amendment in 2016, which became effective in 2019.

• This amendment specifically targets the reduction of Hydrofluorocarbons (HFCs), which serve as non-ODS alternatives to previously phased-out substances like Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs).

• The Kigali Amendment (2016, effective 2019) does not target HCFCs (which were already being phased out under earlier amendments). Instead, it focuses on reducing Hydrofluorocarbons (HFCs), which are non-ozone-depleting substances but contribute to global warming.

https://www.nature.com/articles/s41558-024-02038-7

Solution: C

Montreal Protocol:

• The Montreal Protocol, enacted in 1987, is a global treaty designed to phase out the production and use of ozone-depleting substances (ODS).

https://www.nature.com/articles/s41558-024-02038-7

• Question 23 of 30 23. Question 1 points Consider the following statements regarding Panchayat (Extension to Scheduled Areas) Act (PESA) PESA extends the provisions of the Panchayati Raj system to Scheduled Areas under both the Fifth and Sixth Schedules of the Constitution. It mandates political representation for Scheduled Tribes (STs) in local governance to ensure their participation in decision-making related to their resources and livelihoods. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: B Panchayat (Extension to Scheduled Areas) Act (PESA), 1996: PESA Act, 1996, extends Part IX of the Constitution (related to Panchayati Raj) to Scheduled Areas. Scheduled Areas are defined under Article 244(1) and receive special provisions under the Fifth Schedule of the Constitution. Key Provisions of PESA: Empowers Gram Sabhas to protect and manage community resources, minor forest produce, and land rights. Ensures political representation for Scheduled Tribes (STs) in local governance. Mandates consultation with Gram Sabhas before land acquisition and developmental projects in Scheduled Areas. Recognizes tribal customs and traditions, giving them priority in governance matters. Applicability: Applies to 10 states with Fifth Schedule Areas, covering various tribal districts. Aims to economically and environmentally empower tribal communities by granting them control over their land, resources, and governance. PESA applies only to Scheduled Areas under the Fifth Schedule, which covers tribal-dominated areas in states outside the Northeast. The Sixth Schedule deals with autonomous district councils in the Northeast and is not covered under PESA. https://www.thehindu.com/sci-tech/energy-and-environment/how-the-pesa-has-boosted-forest-conservation-in-india/article68327557.ece Incorrect Solution: B Panchayat (Extension to Scheduled Areas) Act (PESA), 1996: PESA Act, 1996, extends Part IX of the Constitution (related to Panchayati Raj) to Scheduled Areas. Scheduled Areas are defined under Article 244(1) and receive special provisions under the Fifth Schedule of the Constitution. Key Provisions of PESA: Empowers Gram Sabhas to protect and manage community resources, minor forest produce, and land rights. Ensures political representation for Scheduled Tribes (STs) in local governance. Mandates consultation with Gram Sabhas before land acquisition and developmental projects in Scheduled Areas. Recognizes tribal customs and traditions, giving them priority in governance matters. Applicability: Applies to 10 states with Fifth Schedule Areas, covering various tribal districts. Aims to economically and environmentally empower tribal communities by granting them control over their land, resources, and governance. PESA applies only to Scheduled Areas under the Fifth Schedule, which covers tribal-dominated areas in states outside the Northeast. The Sixth Schedule deals with autonomous district councils in the Northeast and is not covered under PESA. https://www.thehindu.com/sci-tech/energy-and-environment/how-the-pesa-has-boosted-forest-conservation-in-india/article68327557.ece

#### 23. Question

Consider the following statements regarding Panchayat (Extension to Scheduled Areas) Act (PESA)

• PESA extends the provisions of the Panchayati Raj system to Scheduled Areas under both the Fifth and Sixth Schedules of the Constitution.

• It mandates political representation for Scheduled Tribes (STs) in local governance to ensure their participation in decision-making related to their resources and livelihoods.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: B

Panchayat (Extension to Scheduled Areas) Act (PESA), 1996:

• PESA Act, 1996, extends Part IX of the Constitution (related to Panchayati Raj) to Scheduled Areas.

• Scheduled Areas are defined under Article 244(1) and receive special provisions under the Fifth Schedule of the Constitution.

Key Provisions of PESA:

• Empowers Gram Sabhas to protect and manage community resources, minor forest produce, and land rights.

• Ensures political representation for Scheduled Tribes (STs) in local governance.

• Mandates consultation with Gram Sabhas before land acquisition and developmental projects in Scheduled Areas.

• Recognizes tribal customs and traditions, giving them priority in governance matters.

Applicability:

• Applies to 10 states with Fifth Schedule Areas, covering various tribal districts.

• Aims to economically and environmentally empower tribal communities by granting them control over their land, resources, and governance.

PESA applies only to Scheduled Areas under the Fifth Schedule, which covers tribal-dominated areas in states outside the Northeast. The Sixth Schedule deals with autonomous district councils in the Northeast and is not covered under PESA.

https://www.thehindu.com/sci-tech/energy-and-environment/how-the-pesa-has-boosted-forest-conservation-in-india/article68327557.ece

Solution: B

Panchayat (Extension to Scheduled Areas) Act (PESA), 1996:

• PESA Act, 1996, extends Part IX of the Constitution (related to Panchayati Raj) to Scheduled Areas.

• Scheduled Areas are defined under Article 244(1) and receive special provisions under the Fifth Schedule of the Constitution.

Key Provisions of PESA:

• Empowers Gram Sabhas to protect and manage community resources, minor forest produce, and land rights.

• Ensures political representation for Scheduled Tribes (STs) in local governance.

• Mandates consultation with Gram Sabhas before land acquisition and developmental projects in Scheduled Areas.

• Recognizes tribal customs and traditions, giving them priority in governance matters.

Applicability:

• Applies to 10 states with Fifth Schedule Areas, covering various tribal districts.

• Aims to economically and environmentally empower tribal communities by granting them control over their land, resources, and governance.

https://www.thehindu.com/sci-tech/energy-and-environment/how-the-pesa-has-boosted-forest-conservation-in-india/article68327557.ece

• Question 24 of 30 24. Question 1 points With reference to the Geographical Indication (GI) Tag in India, consider the following statements GI tags in India are granted under the Copyright Act of 1957. It provides legal protection for 10 years, which can be renewed. The Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for overseeing GI registration in India. Darjeeling Tea was the first product in India to receive a GI tag. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2, 3, and 4 only (c) 1, 3, and 4 only (d) 1, 2, and 4 only Correct Solution: B Geographical Indication (GI) Tag: A Geographical Indication (GI) is a designation given to products that have a specific geographical origin and possess qualities, reputation, or characteristics unique to that location. GI is a form of Intellectual Property Rights (IPR) that protects agricultural, natural, or manufactured products linked to a particular region. International Recognition GI is recognized under the Paris Convention for the Protection of Industrial Property. Covered under WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, Madrid Agreement, and Lisbon Agreement. GI Tag in India Legal Framework: Governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999. Authority: Administered by the Registrar of Geographical Indications (RGI) under the Controller General of Patents, Designs, and Trademarks (CGPDTM). Validity: GI registration provides legal protection for 10 years, renewable indefinitely. Nodal Ministry: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. First GI Tag in India Darjeeling Tea (West Bengal) was the first product in India to receive a GI tag in 2004-05. https://indianexpress.com/article/explained/explained-culture/dodol-goa-gi-tag-history-9410228/ Incorrect Solution: B Geographical Indication (GI) Tag: A Geographical Indication (GI) is a designation given to products that have a specific geographical origin and possess qualities, reputation, or characteristics unique to that location. GI is a form of Intellectual Property Rights (IPR) that protects agricultural, natural, or manufactured products linked to a particular region. International Recognition GI is recognized under the Paris Convention for the Protection of Industrial Property. Covered under WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, Madrid Agreement, and Lisbon Agreement. GI Tag in India Legal Framework: Governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999. Authority: Administered by the Registrar of Geographical Indications (RGI) under the Controller General of Patents, Designs, and Trademarks (CGPDTM). Validity: GI registration provides legal protection for 10 years, renewable indefinitely. Nodal Ministry: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. First GI Tag in India Darjeeling Tea (West Bengal) was the first product in India to receive a GI tag in 2004-05. https://indianexpress.com/article/explained/explained-culture/dodol-goa-gi-tag-history-9410228/

#### 24. Question

With reference to the Geographical Indication (GI) Tag in India, consider the following statements

• GI tags in India are granted under the Copyright Act of 1957.

• It provides legal protection for 10 years, which can be renewed.

• The Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for overseeing GI registration in India.

• Darjeeling Tea was the first product in India to receive a GI tag.

Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2, 3, and 4 only

• (c) 1, 3, and 4 only

• (d) 1, 2, and 4 only

Solution: B

Geographical Indication (GI) Tag:

• A Geographical Indication (GI) is a designation given to products that have a specific geographical origin and possess qualities, reputation, or characteristics unique to that location.

• GI is a form of Intellectual Property Rights (IPR) that protects agricultural, natural, or manufactured products linked to a particular region.

International Recognition

• GI is recognized under the Paris Convention for the Protection of Industrial Property.

• Covered under WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, Madrid Agreement, and Lisbon Agreement.

GI Tag in India

• Legal Framework: Governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999.

• Authority: Administered by the Registrar of Geographical Indications (RGI) under the Controller General of Patents, Designs, and Trademarks (CGPDTM).

• Validity: GI registration provides legal protection for 10 years, renewable indefinitely.

• Nodal Ministry: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

First GI Tag in India

• Darjeeling Tea (West Bengal) was the first product in India to receive a GI tag in 2004-05.

https://indianexpress.com/article/explained/explained-culture/dodol-goa-gi-tag-history-9410228/

Solution: B

Geographical Indication (GI) Tag:

• GI is a form of Intellectual Property Rights (IPR) that protects agricultural, natural, or manufactured products linked to a particular region.

International Recognition

• GI is recognized under the Paris Convention for the Protection of Industrial Property.

• Covered under WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, Madrid Agreement, and Lisbon Agreement.

GI Tag in India

• Legal Framework: Governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999.

• Authority: Administered by the Registrar of Geographical Indications (RGI) under the Controller General of Patents, Designs, and Trademarks (CGPDTM).

• Validity: GI registration provides legal protection for 10 years, renewable indefinitely.

• Nodal Ministry: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

First GI Tag in India

• Darjeeling Tea (West Bengal) was the first product in India to receive a GI tag in 2004-05.

https://indianexpress.com/article/explained/explained-culture/dodol-goa-gi-tag-history-9410228/

• Question 25 of 30 25. Question 1 points Sticky inflation refers to (a) A temporary rise in inflation due to seasonal factors. (b) A situation where inflation remains persistently high despite economic or monetary policy changes. (c) A sharp decline in inflation followed by a rapid increase. (d) A scenario where inflation fluctuates frequently due to volatile market conditions. Correct Solution: B Sticky Inflation: Sticky inflation refers to a situation where inflation rates remain persistently high or stable despite changes in economic conditions or monetary policy measures. It is characterized by a slow decline in inflation, even when central banks attempt to control it using tools like interest rate hikes or liquidity adjustments. Key Features of Sticky Inflation Resistant to Monetary Policy – Inflation remains elevated despite central bank interventions like interest rate hikes. Slow Adjustment – Inflation does not decrease quickly, even in response to economic slowdowns. Long-Term Impact – Prolonged high inflation can affect purchasing power, investment decisions, and economic growth. Incorrect Solution: B Sticky Inflation: Sticky inflation refers to a situation where inflation rates remain persistently high or stable despite changes in economic conditions or monetary policy measures. It is characterized by a slow decline in inflation, even when central banks attempt to control it using tools like interest rate hikes or liquidity adjustments. Key Features of Sticky Inflation Resistant to Monetary Policy – Inflation remains elevated despite central bank interventions like interest rate hikes. Slow Adjustment – Inflation does not decrease quickly, even in response to economic slowdowns. Long-Term Impact – Prolonged high inflation can affect purchasing power, investment decisions, and economic growth.

#### 25. Question

Sticky inflation refers to

• (a) A temporary rise in inflation due to seasonal factors.

• (b) A situation where inflation remains persistently high despite economic or monetary policy changes.

• (c) A sharp decline in inflation followed by a rapid increase.

• (d) A scenario where inflation fluctuates frequently due to volatile market conditions.

Solution: B

Sticky Inflation:

• Sticky inflation refers to a situation where inflation rates remain persistently high or stable despite changes in economic conditions or monetary policy measures.

• It is characterized by a slow decline in inflation, even when central banks attempt to control it using tools like interest rate hikes or liquidity adjustments.

Key Features of Sticky Inflation

• Resistant to Monetary Policy – Inflation remains elevated despite central bank interventions like interest rate hikes.

• Slow Adjustment – Inflation does not decrease quickly, even in response to economic slowdowns.

• Long-Term Impact – Prolonged high inflation can affect purchasing power, investment decisions, and economic growth.

Solution: B

Sticky Inflation:

• Sticky inflation refers to a situation where inflation rates remain persistently high or stable despite changes in economic conditions or monetary policy measures.

• It is characterized by a slow decline in inflation, even when central banks attempt to control it using tools like interest rate hikes or liquidity adjustments.

Key Features of Sticky Inflation

• Resistant to Monetary Policy – Inflation remains elevated despite central bank interventions like interest rate hikes.

• Slow Adjustment – Inflation does not decrease quickly, even in response to economic slowdowns.

• Long-Term Impact – Prolonged high inflation can affect purchasing power, investment decisions, and economic growth.

• Question 26 of 30 26. Question 1 points It was over 50 years ago when the administration of President Lyndon Baines Johnson declared that “firearms are a primary instrument of death in American crime” and that it was “primarily the result of our culture’s casual attitude towards firearms and its heritage of the armed, self-reliant citizen”. A new research shows, guns overtook car crashes to become the leading cause of death for US children and teenagers in 2020. Recently, nineteen young children and two adults died in a shooting at a primary school in South Texas. Despite such horrific incidents, there is no common consensus on its solution. Issue of ‘gun control’ is a highly political one, pitting gun control advocates against sectors of the population fiercely protective of their constitutionally-enshrined right to bear arms. With reference to the above passage, the following assumptions have been made: Gun has remained the leading cause of death for US children and teenagers for the last 50 years. There is no consensus on ‘gun control’, as Americans believe in the heritage of the armed, self-reliant citizen which is also reflected in their constitution. Which of the above assumption is/are valid? a. 1 only b. 2 only c. Both 1 & 2 d. Neither 1 nor 2 Correct Correct Option: B Justification: Statement 1 is incorrect: Passage shows, “guns overtook car crashes to become the leading cause of death for US children and teenagers in 2020”. This doesn’t mean guns have remained the leading cause of death for the last 50 years. Statement 2 is correct: There is no agreement on ‘gun control’ as America has a heritage of ‘armed, self-reliant citizens’ and therefore, the ‘right to bear arms’ has been made a constitutional right. Incorrect Correct Option: B Justification: Statement 1 is incorrect: Passage shows, “guns overtook car crashes to become the leading cause of death for US children and teenagers in 2020”. This doesn’t mean guns have remained the leading cause of death for the last 50 years. Statement 2 is correct: There is no agreement on ‘gun control’ as America has a heritage of ‘armed, self-reliant citizens’ and therefore, the ‘right to bear arms’ has been made a constitutional right.

#### 26. Question

It was over 50 years ago when the administration of President Lyndon Baines Johnson declared that “firearms are a primary instrument of death in American crime” and that it was “primarily the result of our culture’s casual attitude towards firearms and its heritage of the armed, self-reliant citizen”.

A new research shows, guns overtook car crashes to become the leading cause of death for US children and teenagers in 2020. Recently, nineteen young children and two adults died in a shooting at a primary school in South Texas. Despite such horrific incidents, there is no common consensus on its solution. Issue of ‘gun control’ is a highly political one, pitting gun control advocates against sectors of the population fiercely protective of their constitutionally-enshrined right to bear arms.

With reference to the above passage, the following assumptions have been made:

• Gun has remained the leading cause of death for US children and teenagers for the last 50 years.

• There is no consensus on ‘gun control’, as Americans believe in the heritage of the armed, self-reliant citizen which is also reflected in their constitution.

Which of the above assumption is/are valid?

• c. Both 1 & 2

• d. Neither 1 nor 2

Correct Option: B

Justification:

Statement 1 is incorrect: Passage shows, “guns overtook car crashes to become the leading cause of death for US children and teenagers in 2020”. This doesn’t mean guns have remained the leading cause of death for the last 50 years.

Statement 2 is correct: There is no agreement on ‘gun control’ as America has a heritage of ‘armed, self-reliant citizens’ and therefore, the ‘right to bear arms’ has been made a constitutional right.

Correct Option: B

Justification:

• Question 27 of 30 27. Question 1 points A tank is fitted with pipes, some filling it and the rest draining it. All filling pipes fill at the same rate, and all draining pipes drain at the same rate. The empty tank get completely filled in 6 hours when 6 filling and 5 draining pipes are on, but this time becomes 60 hours when 5 filling and 6 draining pipes are on. In how many hours will the empty tank get completely filled when one draining and two filling pipes are on? a. 8 hours b. 10 hours c. 12 hours d. 14 hours Correct Correct Option : B Justification : Let a filling pipe fills the tank at ‘a’ litres per hour and a draining pipe drains at ‘b’ litres per hour. 6(6a – 5b) = 60(5a – 6b) .: 6a – 5b = 50a – 60b :. 44a = 55b :. a = 5b/4 Let the tank gets filled completely in ‘m’ hours when one draining pipe and two filling pipes are on. m(2a – b) = 6(6a – 5b) m (2.5/4 b – b)= = 6(6. 5/4 b – 5b) m(6b/4) = 6 (10b/4) m = 10 Incorrect Correct Option : B Justification : Let a filling pipe fills the tank at ‘a’ litres per hour and a draining pipe drains at ‘b’ litres per hour. 6(6a – 5b) = 60(5a – 6b) .: 6a – 5b = 50a – 60b :. 44a = 55b :. a = 5b/4 Let the tank gets filled completely in ‘m’ hours when one draining pipe and two filling pipes are on. m(2a – b) = 6(6a – 5b) m (2.5/4 b – b)= = 6(6. 5/4 b – 5b) m(6b/4) = 6 (10b/4) m = 10

#### 27. Question

A tank is fitted with pipes, some filling it and the rest draining it. All filling pipes fill at the same rate, and all draining pipes drain at the same rate. The empty tank get completely filled in 6 hours when 6 filling and 5 draining pipes are on, but this time becomes 60 hours when 5 filling and 6 draining pipes are on. In how many hours will the empty tank get completely filled when one draining and two filling pipes are on?

• a. 8 hours

• b. 10 hours

• c. 12 hours

• d. 14 hours

Correct Option : B

Justification :

Let a filling pipe fills the tank at ‘a’ litres per hour and a draining pipe drains at ‘b’ litres per hour.

6(6a – 5b) = 60(5a – 6b)

.: 6a – 5b = 50a – 60b

:. 44a = 55b

:. a = 5b/4

Let the tank gets filled completely in ‘m’ hours when one draining pipe and two filling pipes are on.

m(2a – b) = 6(6a – 5b)

m (2.5/4 b – b)= = 6(6. 5/4 b – 5b)

m(6b/4) = 6 (10b/4)

Correct Option : B

Justification :

Let a filling pipe fills the tank at ‘a’ litres per hour and a draining pipe drains at ‘b’ litres per hour.

6(6a – 5b) = 60(5a – 6b)

.: 6a – 5b = 50a – 60b

:. 44a = 55b

:. a = 5b/4

Let the tank gets filled completely in ‘m’ hours when one draining pipe and two filling pipes are on.

m(2a – b) = 6(6a – 5b)

m (2.5/4 b – b)= = 6(6. 5/4 b – 5b)

m(6b/4) = 6 (10b/4)

• Question 28 of 30 28. Question 1 points If there is a leakage also which is capable of draining out the liquid from the tank at half of the rate of outlet pipe, then what is the time taken to fill the empty tank when both the pipes are opened? a. 3 hours b. 3 (2/3) c. 4 hours d. None of the these Correct Correct Option : C Justification : Rate of leakage = 8.33% per hour Net efficiency = 50 − (16.66 + 8.33) = 25% Time required = 100/25 = 4 hours Question Level: Moderate Incorrect Correct Option : C Justification : Rate of leakage = 8.33% per hour Net efficiency = 50 − (16.66 + 8.33) = 25% Time required = 100/25 = 4 hours Question Level: Moderate

#### 28. Question

If there is a leakage also which is capable of draining out the liquid from the tank at half of the rate of outlet pipe, then what is the time taken to fill the empty tank when both the pipes are opened?

• a. 3 hours

• b. 3 (2/3)

• c. 4 hours

• d. None of the these

Correct Option : C

Justification :

Rate of leakage = 8.33% per hour

Net efficiency = 50 − (16.66 + 8.33) = 25%

Time required = 100/25 = 4 hours

Question Level: Moderate

Correct Option : C

Justification :

Rate of leakage = 8.33% per hour

Net efficiency = 50 − (16.66 + 8.33) = 25%

Time required = 100/25 = 4 hours

Question Level: Moderate

• Question 29 of 30 29. Question 1 points Profits of a business are distributed among three partners A, B and C in such a way that 4 times the amount received by A is equal to 6 times the amount received by B and 11 times the amount received by C. The ratio in which the three received the amount is a. 4 : 6 : 11 b. 11 : 6 : 4 c. 1/4) : (1/6) : (1/11) d. 66 : 44 : 24 Correct Correct Option : D Justification : Explanation: Given that 4 times the amount received by A is equal to 6 times the amount received by B and 11 times the amount received by C. This can be written as, 4A = 6B or A : B = 3 : 2 ….(1) and 4A = 11C or A : C = 11 : 4 ….(2) Multiply equation (1) with 11 and equation (2) with 3 we get, A :B = 33 : 22 and A : C = 33 : 12 (or) A : B : C = 33 : 22 : 12 (or) 66 : 44 : 24 Hence, option D is the correct answer. Incorrect Correct Option : D Justification : Explanation: Given that 4 times the amount received by A is equal to 6 times the amount received by B and 11 times the amount received by C. This can be written as, 4A = 6B or A : B = 3 : 2 ….(1) and 4A = 11C or A : C = 11 : 4 ….(2) Multiply equation (1) with 11 and equation (2) with 3 we get, A :B = 33 : 22 and A : C = 33 : 12 (or) A : B : C = 33 : 22 : 12 (or) 66 : 44 : 24 Hence, option D is the correct answer.

#### 29. Question

Profits of a business are distributed among three partners A, B and C in such a way that 4 times the amount received by A is equal to 6 times the amount received by B and 11 times the amount received by C. The ratio in which the three received the amount is

• a. 4 : 6 : 11

• b. 11 : 6 : 4

• c. 1/4) : (1/6) : (1/11)

• d. 66 : 44 : 24

Correct Option : D

Justification :

Explanation:

Given that 4 times the amount received by A is equal to 6 times the amount received by B and 11 times the amount received by C.

This can be written as,

4A = 6B or A : B = 3 : 2 ….(1) and

4A = 11C or A : C = 11 : 4 ….(2)

Multiply equation (1) with 11 and equation (2) with 3 we get,

A :B = 33 : 22 and A : C = 33 : 12 (or)

A : B : C = 33 : 22 : 12 (or) 66 : 44 : 24

Hence, option D is the correct answer.

Correct Option : D

Justification :

Explanation:

Given that 4 times the amount received by A is equal to 6 times the amount received by B and 11 times the amount received by C.

This can be written as,

4A = 6B or A : B = 3 : 2 ….(1) and

4A = 11C or A : C = 11 : 4 ….(2)

Multiply equation (1) with 11 and equation (2) with 3 we get,

A :B = 33 : 22 and A : C = 33 : 12 (or)

A : B : C = 33 : 22 : 12 (or) 66 : 44 : 24

Hence, option D is the correct answer.

• Question 30 of 30 30. Question 1 points Two men X and Y started working for a certain company at similar jobs on January 1, 1950. X asked for an initial monthly salary of Rs. 300 with an annual increment of Rs. 30. Y asked for an initial monthly salary of Rs. 200 with a rise of Rs. 15 every 6 months. Assume that the arrangements remained unaltered till December 31, 1959. Salary is paid on the last day of the month. What is the total amount paid to them as salary during the period? a. Rs. 93,300 b. Rs. 93,200 c. Rs. 93,100 d. None of these Correct Correct Option : A Justification : Answer: A) Rs. 93,300 Explanation: January 1, 1950 to December 31, 1959 is a period of 10 years or 20 half years. The person X after 1st year gets Rs. 300 in next year he gets Rs. 330 and so on. So his earning is in AP with 10 300+330+360+… Similarly earning of Y is in AP with 20 terms 200+215+230+245…. . So, the total earnings of X equals 12(300+330+….10 terms) = 52200 The total earnings of Y equals 6(200+215+230+…20 terms) = 41100 So, the total earnings of the two equals 52200+41100 = 93300 Incorrect Correct Option : A Justification : Answer: A) Rs. 93,300 Explanation: January 1, 1950 to December 31, 1959 is a period of 10 years or 20 half years. The person X after 1st year gets Rs. 300 in next year he gets Rs. 330 and so on. So his earning is in AP with 10 300+330+360+… Similarly earning of Y is in AP with 20 terms 200+215+230+245…. . So, the total earnings of X equals 12(300+330+….10 terms) = 52200 The total earnings of Y equals 6(200+215+230+…20 terms) = 41100 So, the total earnings of the two equals 52200+41100 = 93300

#### 30. Question

Two men X and Y started working for a certain company at similar jobs on January 1, 1950. X asked for an initial monthly salary of Rs. 300 with an annual increment of Rs. 30. Y asked for an initial monthly salary of Rs. 200 with a rise of Rs. 15 every 6 months. Assume that the arrangements remained unaltered till December 31, 1959. Salary is paid on the last day of the month. What is the total amount paid to them as salary during the period?

• a. Rs. 93,300

• b. Rs. 93,200

• c. Rs. 93,100

• d. None of these

Correct Option : A

Justification :

Answer: A) Rs. 93,300

Explanation:

January 1, 1950 to December 31, 1959 is a period of 10 years or 20 half years.

The person X after 1st year gets Rs. 300 in next year he gets Rs. 330 and so on.

So his earning is in AP with 10 300+330+360+…

Similarly earning of Y is in AP with 20 terms 200+215+230+245…. .

So, the total earnings of X equals 12*(300+330+….10 terms) = 52200

The total earnings of Y equals 6*(200+215+230+…20 terms) = 41100

So, the total earnings of the two equals 52200+41100 = 93300

Correct Option : A

Justification :

Answer: A) Rs. 93,300

Explanation:

January 1, 1950 to December 31, 1959 is a period of 10 years or 20 half years.

The person X after 1st year gets Rs. 300 in next year he gets Rs. 330 and so on.

So his earning is in AP with 10 300+330+360+…

Similarly earning of Y is in AP with 20 terms 200+215+230+245…. .

So, the total earnings of X equals 12*(300+330+….10 terms) = 52200

The total earnings of Y equals 6*(200+215+230+…20 terms) = 41100

So, the total earnings of the two equals 52200+41100 = 93300

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