UPSC Current Affairs Quiz : 20 May 2025

The Current Affairs Quiz 2024 is a daily quiz based on the DAILY CURRENT AFFAIRS AND PIB SUMMARY from the previous day, as posted on our website. It covers all relevant news sources and is designed to test your knowledge of current events. Solving these questions will help you retain both concepts and facts relevant to the UPSC IAS civil services exam.

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• Question 1 of 10 1. Question 1 points Consider the following statements about the Asian Development Bank (ADB): ADB admits non-regional developed countries as members. The voting power in ADB is equally distributed among all members. Japan and the USA are the largest shareholders in ADB. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: b) Statement 1 is correct: Non-regional developed countries like the USA and Japan are members. Statement 2 is incorrect: ADB uses a weighted voting system, not equal distribution, based on capital subscriptions. Statement 3 is correct: Japan and the USA are the largest shareholders, each holding 15.57% of the total shares. About Asian Development Bank (ADB): Headquarters:Mandaluyong, Metro Manila, Philippines. Established In: December 19, 1966. Members:69 countries, including regional (e.g., India, China) and non-regional (e.g., USA, Japan) members. The bank admits the members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries. Functions: Promotes social and economic development in Asia and the Pacific. Provides loans, grants, and technical assistance for development projects. Features: Weighted voting system based on capital subscriptions. Major shareholders: Japan (15.57%), USA (15.57%), India (6.32%), China (6.43%), and Australia (5.77%). Incorrect Solution: b) Statement 1 is correct: Non-regional developed countries like the USA and Japan are members. Statement 2 is incorrect: ADB uses a weighted voting system, not equal distribution, based on capital subscriptions. Statement 3 is correct: Japan and the USA are the largest shareholders, each holding 15.57% of the total shares. About Asian Development Bank (ADB): Headquarters:Mandaluyong, Metro Manila, Philippines. Established In: December 19, 1966. Members:69 countries, including regional (e.g., India, China) and non-regional (e.g., USA, Japan) members. The bank admits the members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries. Functions: Promotes social and economic development in Asia and the Pacific. Provides loans, grants, and technical assistance for development projects. Features: Weighted voting system based on capital subscriptions. Major shareholders: Japan (15.57%), USA (15.57%), India (6.32%), China (6.43%), and Australia (5.77%).

#### 1. Question

Consider the following statements about the Asian Development Bank (ADB):

• ADB admits non-regional developed countries as members.

• The voting power in ADB is equally distributed among all members.

• Japan and the USA are the largest shareholders in ADB.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: b)

Statement 1 is correct: Non-regional developed countries like the USA and Japan are members.

Statement 2 is incorrect: ADB uses a weighted voting system, not equal distribution, based on capital subscriptions.

Statement 3 is correct: Japan and the USA are the largest shareholders, each holding 15.57% of the total shares.

About Asian Development Bank (ADB):

• Headquarters:Mandaluyong, Metro Manila, Philippines.

• Established In: December 19, 1966.

• Members:69 countries, including regional (e.g., India, China) and non-regional (e.g., USA, Japan) members.

• The bank admits the members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.

Functions:

• Promotes social and economic development in Asia and the Pacific.

• Provides loans, grants, and technical assistance for development projects.

• Weighted voting system based on capital subscriptions.

• Major shareholders: Japan (15.57%), USA (15.57%), India (6.32%), China (6.43%), and Australia (5.77%).

Solution: b)

Statement 1 is correct: Non-regional developed countries like the USA and Japan are members.

Statement 2 is incorrect: ADB uses a weighted voting system, not equal distribution, based on capital subscriptions.

Statement 3 is correct: Japan and the USA are the largest shareholders, each holding 15.57% of the total shares.

About Asian Development Bank (ADB):

• Headquarters:Mandaluyong, Metro Manila, Philippines.

• Established In: December 19, 1966.

• Members:69 countries, including regional (e.g., India, China) and non-regional (e.g., USA, Japan) members.

• The bank admits the members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.

Functions:

• Promotes social and economic development in Asia and the Pacific.

• Provides loans, grants, and technical assistance for development projects.

• Weighted voting system based on capital subscriptions.

• Major shareholders: Japan (15.57%), USA (15.57%), India (6.32%), China (6.43%), and Australia (5.77%).

• Question 2 of 10 2. Question 1 points Consider the following statements about undersea cables: They are buried under the seabed near shorelines to avoid damage. Fiber-optic technology in undersea cables transmits data using electrical signals. It is protected by layers of insulation, plastic, and steel wires. How many of the above statements is/are incorrect? (a) Only one (b) Only two c) All three d) None Correct Solution: a) Statement 1 is correct: Cables are buried under the seabed near shores to protect them from damage. Statement 2 is incorrect: Fiber-optic cables transmit data using light signals, not electrical signals. Statement 3 is correct: Undersea cables are protected by insulation, plastic, and steel layers. How they work: Fiber-optic technologytransmits data using laser beams through thin glass fibres. Protected by layers of insulation, plastic, and steel wires. Buried under seabed near shores; laid directly on the ocean floor in deep sea. Incorrect Solution: a) Statement 1 is correct: Cables are buried under the seabed near shores to protect them from damage. Statement 2 is incorrect: Fiber-optic cables transmit data using light signals, not electrical signals. Statement 3 is correct: Undersea cables are protected by insulation, plastic, and steel layers. How they work: Fiber-optic technologytransmits data using laser beams through thin glass fibres. Protected by layers of insulation, plastic, and steel wires. Buried under seabed near shores; laid directly on the ocean floor in deep sea.

#### 2. Question

Consider the following statements about undersea cables:

• They are buried under the seabed near shorelines to avoid damage.

• Fiber-optic technology in undersea cables transmits data using electrical signals.

• It is protected by layers of insulation, plastic, and steel wires.

How many of the above statements is/are incorrect?

• (a) Only one

• (b) Only two

• c) All three

Solution: a)

Statement 1 is correct: Cables are buried under the seabed near shores to protect them from damage.

Statement 2 is incorrect: Fiber-optic cables transmit data using light signals, not electrical signals.

Statement 3 is correct: Undersea cables are protected by insulation, plastic, and steel layers.

How they work:

• Fiber-optic technologytransmits data using laser beams through thin glass fibres.

• Protected by layers of insulation, plastic, and steel wires.

• Buried under seabed near shores; laid directly on the ocean floor in deep sea.

Solution: a)

Statement 1 is correct: Cables are buried under the seabed near shores to protect them from damage.

Statement 2 is incorrect: Fiber-optic cables transmit data using light signals, not electrical signals.

Statement 3 is correct: Undersea cables are protected by insulation, plastic, and steel layers.

How they work:

• Fiber-optic technologytransmits data using laser beams through thin glass fibres.

• Protected by layers of insulation, plastic, and steel wires.

• Buried under seabed near shores; laid directly on the ocean floor in deep sea.

• Question 3 of 10 3. Question 1 points Which of the following Indian states is known to have the largest deposit of graphite? a) Andhra Pradesh b) Rajasthan c) Arunachal Pradesh d) Jharkhand Correct Solution: c) Arunachal Pradesh has the largest deposit of graphite in India, making it a key state for strategic mineral extraction in the country. Lithium: Found in Jammu & Kashmir (5.9 million tonnes). Rare Earth Elements (REE): Andhra Pradesh, Odisha, and Rajasthan. Graphite: Arunachal Pradesh (largest deposit in India). Cobalt: Found in Odisha and Jharkhand. Tungsten: Deposits in Rajasthan and Karnataka. Incorrect Solution: c) Arunachal Pradesh has the largest deposit of graphite in India, making it a key state for strategic mineral extraction in the country. Lithium: Found in Jammu & Kashmir (5.9 million tonnes). Rare Earth Elements (REE): Andhra Pradesh, Odisha, and Rajasthan. Graphite: Arunachal Pradesh (largest deposit in India). Cobalt: Found in Odisha and Jharkhand. Tungsten: Deposits in Rajasthan and Karnataka.

#### 3. Question

Which of the following Indian states is known to have the largest deposit of graphite?

• a) Andhra Pradesh

• b) Rajasthan

• c) Arunachal Pradesh

• d) Jharkhand

Solution: c)

Arunachal Pradesh has the largest deposit of graphite in India, making it a key state for strategic mineral extraction in the country.

• Lithium: Found in Jammu & Kashmir (5.9 million tonnes).

• Rare Earth Elements (REE): Andhra Pradesh, Odisha, and Rajasthan.

• Graphite: Arunachal Pradesh (largest deposit in India).

• Cobalt: Found in Odisha and Jharkhand.

• Tungsten: Deposits in Rajasthan and Karnataka.

Solution: c)

Arunachal Pradesh has the largest deposit of graphite in India, making it a key state for strategic mineral extraction in the country.

• Lithium: Found in Jammu & Kashmir (5.9 million tonnes).

• Rare Earth Elements (REE): Andhra Pradesh, Odisha, and Rajasthan.

• Graphite: Arunachal Pradesh (largest deposit in India).

• Cobalt: Found in Odisha and Jharkhand.

• Tungsten: Deposits in Rajasthan and Karnataka.

• Question 4 of 10 4. Question 1 points Consider the following statements about the functions of the National Human Rights Commission (NHRC): It can recommend changes to existing laws and policies to align them with human rights standards. It has the power to prosecute individuals directly for human rights violations. It cannot inspect jails or detention centers as part of its mandate. Which of the above statements is/are correct? (a) 1 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 Correct Solution: a) Statement 1 is correct as the NHRC can recommend changes to laws, treaties, and policies to promote and protect human rights. Statement 2 is incorrect because the NHRC does not have prosecutorial powers; it can only make recommendations to authorities. Statement 3 is incorrect as the NHRC can inspect jails and detention centers to review the conditions and protect the rights of detainees. Functions and Powers: Inquiry into Human RightsViolations: By public servants or negligence thereof. Recommendations:On protection, promotion, and effective implementation of human rights. Review of Laws:Assess treaties and international instruments for human rights. Research and Awareness:Promote research, publications, and awareness of human rights safeguards. Visit Institutions:Inspect jails and other places of detention. Incorrect Solution: a) Statement 1 is correct as the NHRC can recommend changes to laws, treaties, and policies to promote and protect human rights. Statement 2 is incorrect because the NHRC does not have prosecutorial powers; it can only make recommendations to authorities. Statement 3 is incorrect as the NHRC can inspect jails and detention centers to review the conditions and protect the rights of detainees. Functions and Powers: Inquiry into Human RightsViolations: By public servants or negligence thereof. Recommendations:On protection, promotion, and effective implementation of human rights. Review of Laws:Assess treaties and international instruments for human rights. Research and Awareness:Promote research, publications, and awareness of human rights safeguards. Visit Institutions:Inspect jails and other places of detention.

#### 4. Question

Consider the following statements about the functions of the National Human Rights Commission (NHRC):

• It can recommend changes to existing laws and policies to align them with human rights standards.

• It has the power to prosecute individuals directly for human rights violations.

• It cannot inspect jails or detention centers as part of its mandate.

Which of the above statements is/are correct?

• (a) 1 only

• (b) 1 and 3 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Solution: a)

Statement 1 is correct as the NHRC can recommend changes to laws, treaties, and policies to promote and protect human rights.

Statement 2 is incorrect because the NHRC does not have prosecutorial powers; it can only make recommendations to authorities.

Statement 3 is incorrect as the NHRC can inspect jails and detention centers to review the conditions and protect the rights of detainees.

Functions and Powers:

• Inquiry into Human RightsViolations: By public servants or negligence thereof.

• Recommendations:On protection, promotion, and effective implementation of human rights.

• Review of Laws:Assess treaties and international instruments for human rights.

• Research and Awareness:Promote research, publications, and awareness of human rights safeguards.

• Visit Institutions:Inspect jails and other places of detention.

Solution: a)

Statement 1 is correct as the NHRC can recommend changes to laws, treaties, and policies to promote and protect human rights.

Statement 2 is incorrect because the NHRC does not have prosecutorial powers; it can only make recommendations to authorities.

Statement 3 is incorrect as the NHRC can inspect jails and detention centers to review the conditions and protect the rights of detainees.

Functions and Powers:

• Inquiry into Human RightsViolations: By public servants or negligence thereof.

• Recommendations:On protection, promotion, and effective implementation of human rights.

• Review of Laws:Assess treaties and international instruments for human rights.

• Research and Awareness:Promote research, publications, and awareness of human rights safeguards.

• Visit Institutions:Inspect jails and other places of detention.

• Question 5 of 10 5. Question 1 points Consider the following statements about Akbar’s contributions to art and architecture: Mughal paintings emphasized realism and naturalism. Agra Fort was entirely constructed by Akbar. The Panch Mahal at Fatehpur Sikri only reflects Indian architectural influences. Buland Darwaza was built to commemorate Akbar’s victory over Gujarat. How many of the above statements is/are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: b) Statement 1 is correct; Mughal paintings under Akbar emphasized naturalism and depicted court scenes, historical events, and nature. Statement 2 is incorrect; Agra Fort was renovated by Akbar but not entirely constructed by him. Statement 3 is incorrect; while the Panch Mahal reflects Indian influences, it is not the only style evident. Statement 4 is correct; Buland Darwaza commemorates Akbar’s victory over Gujarat. Art and Architecture: Fatehpur Sikri:Built iconic structures like Buland Darwaza, Panch Mahal, and Jama Masjid, reflecting Persian, Islamic, and Indian styles. Agra Fort:Renovated with structures like Jahangir Mahal. Mughal Paintings:Emphasized naturalism and realism in miniature paintings, showcasing court scenes, historical events, and nature. Incorrect Solution: b) Statement 1 is correct; Mughal paintings under Akbar emphasized naturalism and depicted court scenes, historical events, and nature. Statement 2 is incorrect; Agra Fort was renovated by Akbar but not entirely constructed by him. Statement 3 is incorrect; while the Panch Mahal reflects Indian influences, it is not the only style evident. Statement 4 is correct; Buland Darwaza commemorates Akbar’s victory over Gujarat. Art and Architecture: Fatehpur Sikri:Built iconic structures like Buland Darwaza, Panch Mahal, and Jama Masjid, reflecting Persian, Islamic, and Indian styles. Agra Fort:Renovated with structures like Jahangir Mahal. Mughal Paintings:Emphasized naturalism and realism in miniature paintings, showcasing court scenes, historical events, and nature.

#### 5. Question

Consider the following statements about Akbar’s contributions to art and architecture:

• Mughal paintings emphasized realism and naturalism.

• Agra Fort was entirely constructed by Akbar.

• The Panch Mahal at Fatehpur Sikri only reflects Indian architectural influences.

• Buland Darwaza was built to commemorate Akbar’s victory over Gujarat.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: b)

Statement 1 is correct; Mughal paintings under Akbar emphasized naturalism and depicted court scenes, historical events, and nature.

Statement 2 is incorrect; Agra Fort was renovated by Akbar but not entirely constructed by him.

Statement 3 is incorrect; while the Panch Mahal reflects Indian influences, it is not the only style evident.

Statement 4 is correct; Buland Darwaza commemorates Akbar’s victory over Gujarat.

Art and Architecture:

• Fatehpur Sikri:Built iconic structures like Buland Darwaza, Panch Mahal, and Jama Masjid, reflecting Persian, Islamic, and Indian styles.

• Agra Fort:Renovated with structures like Jahangir Mahal.

• Mughal Paintings:Emphasized naturalism and realism in miniature paintings, showcasing court scenes, historical events, and nature.

Solution: b)

Statement 1 is correct; Mughal paintings under Akbar emphasized naturalism and depicted court scenes, historical events, and nature.

Statement 2 is incorrect; Agra Fort was renovated by Akbar but not entirely constructed by him.

Statement 3 is incorrect; while the Panch Mahal reflects Indian influences, it is not the only style evident.

Statement 4 is correct; Buland Darwaza commemorates Akbar’s victory over Gujarat.

Art and Architecture:

• Fatehpur Sikri:Built iconic structures like Buland Darwaza, Panch Mahal, and Jama Masjid, reflecting Persian, Islamic, and Indian styles.

• Agra Fort:Renovated with structures like Jahangir Mahal.

• Mughal Paintings:Emphasized naturalism and realism in miniature paintings, showcasing court scenes, historical events, and nature.

• Question 6 of 10 6. Question 1 points Which of the following processes directly leads to the enhanced greenhouse effect in global warming? a) Absorption of CO₂ by oceans b) Trapping of infrared radiation by greenhouse gases c) Reflection of sunlight by polar ice caps d) Increased absorption of solar radiation by Earth's surface Correct Solution: b) The enhanced greenhouse effect primarily results from the trapping of infrared radiation by greenhouse gases such as carbon dioxide (CO₂), methane (CH₄), and water vapor. These gases act like a thermal blanket around the Earth. When solar radiation reaches the Earth’s surface, it is absorbed and re-emitted as infrared radiation. Instead of escaping into space, a significant portion of this infrared radiation is absorbed by greenhouse gases and re-radiated back towards the Earth’s surface, leading to an increase in atmospheric and surface temperatures. This process is different from the natural greenhouse effect, which maintains Earth’s habitable climate. Human activities, such as burning fossil fuels, deforestation, and industrial processes, have elevated the concentration of greenhouse gases, intensifying this effect. Incorrect Solution: b) The enhanced greenhouse effect primarily results from the trapping of infrared radiation by greenhouse gases such as carbon dioxide (CO₂), methane (CH₄), and water vapor. These gases act like a thermal blanket around the Earth. When solar radiation reaches the Earth’s surface, it is absorbed and re-emitted as infrared radiation. Instead of escaping into space, a significant portion of this infrared radiation is absorbed by greenhouse gases and re-radiated back towards the Earth’s surface, leading to an increase in atmospheric and surface temperatures. This process is different from the natural greenhouse effect, which maintains Earth’s habitable climate. Human activities, such as burning fossil fuels, deforestation, and industrial processes, have elevated the concentration of greenhouse gases, intensifying this effect.

#### 6. Question

Which of the following processes directly leads to the enhanced greenhouse effect in global warming?

• a) Absorption of CO₂ by oceans

• b) Trapping of infrared radiation by greenhouse gases

• c) Reflection of sunlight by polar ice caps

• d) Increased absorption of solar radiation by Earth's surface

Solution: b)

The enhanced greenhouse effect primarily results from the trapping of infrared radiation by greenhouse gases such as carbon dioxide (CO₂), methane (CH₄), and water vapor. These gases act like a thermal blanket around the Earth. When solar radiation reaches the Earth’s surface, it is absorbed and re-emitted as infrared radiation. Instead of escaping into space, a significant portion of this infrared radiation is absorbed by greenhouse gases and re-radiated back towards the Earth’s surface, leading to an increase in atmospheric and surface temperatures.

This process is different from the natural greenhouse effect, which maintains Earth’s habitable climate. Human activities, such as burning fossil fuels, deforestation, and industrial processes, have elevated the concentration of greenhouse gases, intensifying this effect.

Solution: b)

• Question 7 of 10 7. Question 1 points How does a speed gun utilize the Doppler Effect? a) By detecting interference patterns in wave propagation b) By analyzing the frequency shift in reflected waves c) By comparing the wavelengths of two stationary objects d) By measuring the amplitude of reflected waves Correct Solution: b) Speed guns leverage the Doppler Effect to measure the speed of moving objects. When the gun emits electromagnetic waves, these waves reflect off a moving object (e.g., a vehicle). If the object is moving towards the speed gun, the reflected waves have a higher frequency than the emitted waves; if moving away, the reflected waves have a lower frequency. This frequency shift is directly proportional to the speed of the object relative to the speed gun. The speed gun’s receiver detects the frequency shift in the reflected waves and uses it to calculate the speed of the moving object. The formula used incorporates the known speed of the emitted waves (speed of light for radar-based speed guns) and the measured frequency difference. Incorrect Solution: b) Speed guns leverage the Doppler Effect to measure the speed of moving objects. When the gun emits electromagnetic waves, these waves reflect off a moving object (e.g., a vehicle). If the object is moving towards the speed gun, the reflected waves have a higher frequency than the emitted waves; if moving away, the reflected waves have a lower frequency. This frequency shift is directly proportional to the speed of the object relative to the speed gun. The speed gun’s receiver detects the frequency shift in the reflected waves and uses it to calculate the speed of the moving object. The formula used incorporates the known speed of the emitted waves (speed of light for radar-based speed guns) and the measured frequency difference.

#### 7. Question

How does a speed gun utilize the Doppler Effect?

• a) By detecting interference patterns in wave propagation

• b) By analyzing the frequency shift in reflected waves

• c) By comparing the wavelengths of two stationary objects

• d) By measuring the amplitude of reflected waves

Solution: b)

Speed guns leverage the Doppler Effect to measure the speed of moving objects. When the gun emits electromagnetic waves, these waves reflect off a moving object (e.g., a vehicle). If the object is moving towards the speed gun, the reflected waves have a higher frequency than the emitted waves; if moving away, the reflected waves have a lower frequency. This frequency shift is directly proportional to the speed of the object relative to the speed gun.

The speed gun’s receiver detects the frequency shift in the reflected waves and uses it to calculate the speed of the moving object. The formula used incorporates the known speed of the emitted waves (speed of light for radar-based speed guns) and the measured frequency difference.

Solution: b)

• Question 8 of 10 8. Question 1 points The ‘Lithium Triangle’ is located in which of the following regions? a) Central Asia b) Eastern Europe c) South America d) Central Africa Correct Solution: c) China: Dominates lithium, graphite, and REE processing (controls 87% of rare earth processing). Australia: Major producer of lithium and REE. DRC: Largest cobalt reserves (60% of global output). USA: Significant REE mining but lacks refining capabilities. South America: Lithium Triangle (Chile, Argentina, Bolivia). Incorrect Solution: c) China: Dominates lithium, graphite, and REE processing (controls 87% of rare earth processing). Australia: Major producer of lithium and REE. DRC: Largest cobalt reserves (60% of global output). USA: Significant REE mining but lacks refining capabilities. South America: Lithium Triangle (Chile, Argentina, Bolivia).

#### 8. Question

The ‘Lithium Triangle’ is located in which of the following regions?

• a) Central Asia

• b) Eastern Europe

• c) South America

• d) Central Africa

Solution: c)

• China: Dominates lithium, graphite, and REE processing (controls 87% of rare earth processing).

• Australia: Major producer of lithium and REE.

• DRC: Largest cobalt reserves (60% of global output).

• USA: Significant REE mining but lacks refining capabilities.

• South America: Lithium Triangle (Chile, Argentina, Bolivia).

Solution: c)

• China: Dominates lithium, graphite, and REE processing (controls 87% of rare earth processing).

• Australia: Major producer of lithium and REE.

• DRC: Largest cobalt reserves (60% of global output).

• USA: Significant REE mining but lacks refining capabilities.

• South America: Lithium Triangle (Chile, Argentina, Bolivia).

• Question 9 of 10 9. Question 1 points Which of the following is a key feedback loop contributing to global warming? a) Reduced methane emissions from wetlands b) Increased plant growth due to higher CO₂ levels c) Higher reflectivity of the Earth's surface d) Reduction in albedo from melting ice Correct Solution: d) The reduction in albedo due to melting ice is a key feedback loop that contributes to global warming. Albedo refers to the reflectivity of the Earth’s surface, where ice and snow reflect a significant portion of solar radiation back into space. When ice melts, it exposes darker surfaces such as oceans or land, which absorb more solar energy instead of reflecting it. This absorbed heat further accelerates the melting of ice, creating a positive feedback loop that exacerbates global warming. Incorrect Solution: d) The reduction in albedo due to melting ice is a key feedback loop that contributes to global warming. Albedo refers to the reflectivity of the Earth’s surface, where ice and snow reflect a significant portion of solar radiation back into space. When ice melts, it exposes darker surfaces such as oceans or land, which absorb more solar energy instead of reflecting it. This absorbed heat further accelerates the melting of ice, creating a positive feedback loop that exacerbates global warming.

#### 9. Question

Which of the following is a key feedback loop contributing to global warming?

• a) Reduced methane emissions from wetlands

• b) Increased plant growth due to higher CO₂ levels

• c) Higher reflectivity of the Earth's surface

• d) Reduction in albedo from melting ice

Solution: d)

The reduction in albedo due to melting ice is a key feedback loop that contributes to global warming. Albedo refers to the reflectivity of the Earth’s surface, where ice and snow reflect a significant portion of solar radiation back into space. When ice melts, it exposes darker surfaces such as oceans or land, which absorb more solar energy instead of reflecting it. This absorbed heat further accelerates the melting of ice, creating a positive feedback loop that exacerbates global warming.

Solution: d)

• Question 10 of 10 10. Question 1 points Which of the following factors is NOT directly used in the calculation of Real Effective Exchange Rate (REER)? a) Inflation differentials b) Trade weights of trading partners c) Bilateral nominal exchange rates d) Domestic interest rates Correct Solution: d) Real Effective Exchange Rate (REER) is a weighted average of a country’s currency value relative to the currencies of its major trading partners, adjusted for inflation. Its calculation involves the following components: Bilateral nominal exchange rates: These measure the value of a country’s currency relative to each trading partner’s currency. Trade weights of trading partners: These represent the relative importance of each trading partner in the country’s overall trade, influencing the weight assigned to each exchange rate. Inflation differentials: Adjustments for differences in inflation rates between the country and its trading partners ensure that the REER reflects real competitiveness. Domestic interest rates are not directly used in the calculation of REER. While interest rates can influence exchange rates through capital flows, they do not factor directly into the formula for REER. Incorrect Solution: d) Real Effective Exchange Rate (REER) is a weighted average of a country’s currency value relative to the currencies of its major trading partners, adjusted for inflation. Its calculation involves the following components: Bilateral nominal exchange rates: These measure the value of a country’s currency relative to each trading partner’s currency. Trade weights of trading partners: These represent the relative importance of each trading partner in the country’s overall trade, influencing the weight assigned to each exchange rate. Inflation differentials: Adjustments for differences in inflation rates between the country and its trading partners ensure that the REER reflects real competitiveness. Domestic interest rates are not directly used in the calculation of REER. While interest rates can influence exchange rates through capital flows, they do not factor directly into the formula for REER.

#### 10. Question

Which of the following factors is NOT directly used in the calculation of Real Effective Exchange Rate (REER)?

• a) Inflation differentials

• b) Trade weights of trading partners

• c) Bilateral nominal exchange rates

• d) Domestic interest rates

Solution: d)

Real Effective Exchange Rate (REER) is a weighted average of a country’s currency value relative to the currencies of its major trading partners, adjusted for inflation. Its calculation involves the following components:

• Bilateral nominal exchange rates: These measure the value of a country’s currency relative to each trading partner’s currency.

• Trade weights of trading partners: These represent the relative importance of each trading partner in the country’s overall trade, influencing the weight assigned to each exchange rate.

• Inflation differentials: Adjustments for differences in inflation rates between the country and its trading partners ensure that the REER reflects real competitiveness.

Domestic interest rates are not directly used in the calculation of REER. While interest rates can influence exchange rates through capital flows, they do not factor directly into the formula for REER.

Solution: d)

• Bilateral nominal exchange rates: These measure the value of a country’s currency relative to each trading partner’s currency.

• Trade weights of trading partners: These represent the relative importance of each trading partner in the country’s overall trade, influencing the weight assigned to each exchange rate.

• Inflation differentials: Adjustments for differences in inflation rates between the country and its trading partners ensure that the REER reflects real competitiveness.

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