UPSC Current Affairs Quiz : 4 October 2025

The Current Affairs Quiz 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 regarding the Sir Creek dispute: Statement-I: The dispute over Sir Creek primarily revolves around the interpretation of a boundary resolution made during the British colonial period. Statement-II: India’s position is based on the thalweg principle, which suggests that the boundary should lie in the middle of the main navigable channel. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: A Both statements are correct, and Statement-II directly explains the core of the disagreement mentioned in Statement-I. The dispute originates from the 1914 resolution between the Government of Bombay and the Ruler of Sindh. Pakistan argues that the resolution placed the boundary on the eastern bank, giving it full control of the creek. India, conversely, invokes the thalweg principle, a standard in international maritime law for river boundaries, which was implicit in the 1914 map’s cartography. This principle dictates that a boundary should follow the middle of the principal navigable channel. Therefore, the differing interpretations of the 1914 resolution, specifically concerning the application of the thalweg doctrine, form the central reason for the continuing dispute. The resolution of this issue is critical as it affects the demarcation of the Exclusive Economic Zones (EEZs) for both nations in the Arabian Sea. Incorrect Solution: A Both statements are correct, and Statement-II directly explains the core of the disagreement mentioned in Statement-I. The dispute originates from the 1914 resolution between the Government of Bombay and the Ruler of Sindh. Pakistan argues that the resolution placed the boundary on the eastern bank, giving it full control of the creek. India, conversely, invokes the thalweg principle, a standard in international maritime law for river boundaries, which was implicit in the 1914 map’s cartography. This principle dictates that a boundary should follow the middle of the principal navigable channel. Therefore, the differing interpretations of the 1914 resolution, specifically concerning the application of the thalweg doctrine, form the central reason for the continuing dispute. The resolution of this issue is critical as it affects the demarcation of the Exclusive Economic Zones (EEZs) for both nations in the Arabian Sea.

#### 1. Question

Consider the following statements regarding the Sir Creek dispute:

Statement-I: The dispute over Sir Creek primarily revolves around the interpretation of a boundary resolution made during the British colonial period.

Statement-II: India’s position is based on the thalweg principle, which suggests that the boundary should lie in the middle of the main navigable channel.

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

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

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

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

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

Solution: A

• Both statements are correct, and Statement-II directly explains the core of the disagreement mentioned in Statement-I.

• The dispute originates from the 1914 resolution between the Government of Bombay and the Ruler of Sindh. Pakistan argues that the resolution placed the boundary on the eastern bank, giving it full control of the creek.

• India, conversely, invokes the thalweg principle, a standard in international maritime law for river boundaries, which was implicit in the 1914 map’s cartography. This principle dictates that a boundary should follow the middle of the principal navigable channel.

• Therefore, the differing interpretations of the 1914 resolution, specifically concerning the application of the thalweg doctrine, form the central reason for the continuing dispute. The resolution of this issue is critical as it affects the demarcation of the Exclusive Economic Zones (EEZs) for both nations in the Arabian Sea.

Solution: A

• Both statements are correct, and Statement-II directly explains the core of the disagreement mentioned in Statement-I.

• Question 2 of 10 2. Question 1 points With reference to External Commercial Borrowings (ECBs) in India, consider the following statements: ECBs can be raised by eligible Indian entities from recognized non-resident entities only in foreign currency. Funds raised through ECBs are permitted to be used for investment in the capital market or real estate business. The framework for ECBs is regulated by the Reserve Bank of India under the provisions of the Foreign Exchange Management Act (FEMA), 1999. How many of the above statements are incorrect? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Only the third statement is correct. The regulatory framework for External Commercial Borrowings (ECBs) is governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999. Statement 1 is incorrect because ECBs can be raised in both foreign currency and Indian Rupees (INR), subject to specific conditions. Statement 2 is incorrect as there are strict end-use restrictions on ECB funds. They are explicitly not allowed for speculative activities, which includes investment in the capital market (share market) or the real estate business. The primary aim of ECBs is to facilitate access to foreign capital for productive purposes like funding capital expenditure, infrastructure projects, and refinancing existing loans, thereby diversifying funding sources beyond domestic markets. Incorrect Solution: B Only the third statement is correct. The regulatory framework for External Commercial Borrowings (ECBs) is governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999. Statement 1 is incorrect because ECBs can be raised in both foreign currency and Indian Rupees (INR), subject to specific conditions. Statement 2 is incorrect as there are strict end-use restrictions on ECB funds. They are explicitly not allowed for speculative activities, which includes investment in the capital market (share market) or the real estate business. The primary aim of ECBs is to facilitate access to foreign capital for productive purposes like funding capital expenditure, infrastructure projects, and refinancing existing loans, thereby diversifying funding sources beyond domestic markets.

#### 2. Question

With reference to External Commercial Borrowings (ECBs) in India, consider the following statements:

• ECBs can be raised by eligible Indian entities from recognized non-resident entities only in foreign currency.

• Funds raised through ECBs are permitted to be used for investment in the capital market or real estate business.

• The framework for ECBs is regulated by the Reserve Bank of India under the provisions of the Foreign Exchange Management Act (FEMA), 1999.

How many of the above statements are incorrect?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

Only the third statement is correct.

• The regulatory framework for External Commercial Borrowings (ECBs) is governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999.

• Statement 1 is incorrect because ECBs can be raised in both foreign currency and Indian Rupees (INR), subject to specific conditions.

Statement 2 is incorrect as there are strict end-use restrictions on ECB funds. They are explicitly not allowed for speculative activities, which includes investment in the capital market (share market) or the real estate business. The primary aim of ECBs is to facilitate access to foreign capital for productive purposes like funding capital expenditure, infrastructure projects, and refinancing existing loans, thereby diversifying funding sources beyond domestic markets.

Solution: B

Only the third statement is correct.

• The regulatory framework for External Commercial Borrowings (ECBs) is governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999.

• Statement 1 is incorrect because ECBs can be raised in both foreign currency and Indian Rupees (INR), subject to specific conditions.

• Question 3 of 10 3. Question 1 points Consider the following statements regarding the SARAL tool: It is an Artificial Intelligence-based tool launched by the Ministry of Science and Technology to translate research papers into multiple Indian languages. The primary objective of the tool is to enable policymakers and industry to directly apply research outputs without expert interpretation. The tool is linked to the creation of an AI Science and Engineering Open India Stack. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Statement 1 is incorrect regarding the launching body and a key function. The SARAL (Simplified and Automated Research Amplification and Learning) tool was launched by the Anusandhan National Research Foundation (ANRF), not the Ministry of Science and Technology directly. While its purpose is to simplify, it creates easy-to-understand summaries, videos, podcasts, and posters, not necessarily direct translation into multiple Indian languages. Statement 2 is correct as SARAL aims to bridge the science-society gap by making complex research understandable for non-specialists, thereby facilitating its application by citizens, policymakers, and industry. Statement 3 is also correct; the tool is associated with the development of an AI Science and Engineering Open India Stack, which will support applications in critical sectors like drug discovery and climate science. Incorrect Solution: B Statement 1 is incorrect regarding the launching body and a key function. The SARAL (Simplified and Automated Research Amplification and Learning) tool was launched by the Anusandhan National Research Foundation (ANRF), not the Ministry of Science and Technology directly. While its purpose is to simplify, it creates easy-to-understand summaries, videos, podcasts, and posters, not necessarily direct translation into multiple Indian languages. Statement 2 is correct as SARAL aims to bridge the science-society gap by making complex research understandable for non-specialists, thereby facilitating its application by citizens, policymakers, and industry. Statement 3 is also correct; the tool is associated with the development of an AI Science and Engineering Open India Stack, which will support applications in critical sectors like drug discovery and climate science.

#### 3. Question

Consider the following statements regarding the SARAL tool:

• It is an Artificial Intelligence-based tool launched by the Ministry of Science and Technology to translate research papers into multiple Indian languages.

• The primary objective of the tool is to enable policymakers and industry to directly apply research outputs without expert interpretation.

• The tool is linked to the creation of an AI Science and Engineering Open India Stack.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• Statement 1 is incorrect regarding the launching body and a key function. The SARAL (Simplified and Automated Research Amplification and Learning) tool was launched by the Anusandhan National Research Foundation (ANRF), not the Ministry of Science and Technology directly. While its purpose is to simplify, it creates easy-to-understand summaries, videos, podcasts, and posters, not necessarily direct translation into multiple Indian languages.

• Statement 2 is correct as SARAL aims to bridge the science-society gap by making complex research understandable for non-specialists, thereby facilitating its application by citizens, policymakers, and industry.

• Statement 3 is also correct; the tool is associated with the development of an AI Science and Engineering Open India Stack, which will support applications in critical sectors like drug discovery and climate science.

Solution: B

• Question 4 of 10 4. Question 1 points Which of the following terms correctly identifies a tropical cyclone occurring in the Northwest Pacific Ocean? (a) Hurricane (b) Cyclone (c) Willy-willy (d) Typhoon Correct Solution: D The term ‘Typhoon’ is used to refer to tropical cyclones that form in the Northwest Pacific Ocean, the region affecting East and Southeast Asia, including countries like the Philippines, Vietnam, and Japan. While the meteorological phenomenon is the same, the terminology varies by geographical location. ‘Hurricane’ is the term used for tropical cyclones in the North Atlantic, Central, and Eastern North Pacific. The term ‘Cyclone’ is used in the South Pacific and the Indian Ocean. ‘Willy-willy’ is a more colloquial term, sometimes used in Australia for a dust devil or a small cyclone. Therefore, Typhoon Bualoi, which impacted the Philippines and Vietnam, is correctly named according to its region of occurrence. This regional nomenclature helps in geographical identification and regional warning systems. Incorrect Solution: D The term ‘Typhoon’ is used to refer to tropical cyclones that form in the Northwest Pacific Ocean, the region affecting East and Southeast Asia, including countries like the Philippines, Vietnam, and Japan. While the meteorological phenomenon is the same, the terminology varies by geographical location. ‘Hurricane’ is the term used for tropical cyclones in the North Atlantic, Central, and Eastern North Pacific. The term ‘Cyclone’ is used in the South Pacific and the Indian Ocean. ‘Willy-willy’ is a more colloquial term, sometimes used in Australia for a dust devil or a small cyclone. Therefore, Typhoon Bualoi, which impacted the Philippines and Vietnam, is correctly named according to its region of occurrence. This regional nomenclature helps in geographical identification and regional warning systems.

#### 4. Question

Which of the following terms correctly identifies a tropical cyclone occurring in the Northwest Pacific Ocean?

• (a) Hurricane

• (b) Cyclone

• (c) Willy-willy

• (d) Typhoon

Solution: D

• The term ‘Typhoon’ is used to refer to tropical cyclones that form in the Northwest Pacific Ocean, the region affecting East and Southeast Asia, including countries like the Philippines, Vietnam, and Japan. While the meteorological phenomenon is the same, the terminology varies by geographical location.

• ‘Hurricane’ is the term used for tropical cyclones in the North Atlantic, Central, and Eastern North Pacific.

• The term ‘Cyclone’ is used in the South Pacific and the Indian Ocean.

• ‘Willy-willy’ is a more colloquial term, sometimes used in Australia for a dust devil or a small cyclone.

• Therefore, Typhoon Bualoi, which impacted the Philippines and Vietnam, is correctly named according to its region of occurrence. This regional nomenclature helps in geographical identification and regional warning systems.

Solution: D

• ‘Hurricane’ is the term used for tropical cyclones in the North Atlantic, Central, and Eastern North Pacific.

• The term ‘Cyclone’ is used in the South Pacific and the Indian Ocean.

• ‘Willy-willy’ is a more colloquial term, sometimes used in Australia for a dust devil or a small cyclone.

• Question 5 of 10 5. Question 1 points Consider the following statements regarding Switzerland: It is a landlocked country bordered by Germany, France, Italy, and Belgium. The administrative capital is Bern, while the judicial capital is Geneva. The river Rhône originates in Switzerland and flows into the Mediterranean Sea. The country has a long-standing tradition of military neutrality and is not a member of the United Nations. How many of the above statements are incorrect? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: C Statement 1 is incorrect. Switzerland is bordered by Germany, France, Italy, Austria, and Liechtenstein, not Belgium. Statement 2 is incorrect. The administrative capital is Bern, but the judicial capital (home to the Federal Supreme Court) is Lausanne, not Geneva. Geneva hosts numerous international organizations, including UN bodies. Statement 4 is incorrect. While Switzerland has a tradition of neutrality, it became a full member of the United Nations (UN) in 2002. Statement 3 is correct. The river Rhône does originate in the Swiss Alps and flows through southeastern France to eventually drain into the Mediterranean Sea. Incorrect Solution: C Statement 1 is incorrect. Switzerland is bordered by Germany, France, Italy, Austria, and Liechtenstein, not Belgium. Statement 2 is incorrect. The administrative capital is Bern, but the judicial capital (home to the Federal Supreme Court) is Lausanne, not Geneva. Geneva hosts numerous international organizations, including UN bodies. Statement 4 is incorrect. While Switzerland has a tradition of neutrality, it became a full member of the United Nations (UN) in 2002. Statement 3 is correct. The river Rhône does originate in the Swiss Alps and flows through southeastern France to eventually drain into the Mediterranean Sea.

#### 5. Question

Consider the following statements regarding Switzerland:

• It is a landlocked country bordered by Germany, France, Italy, and Belgium.

• The administrative capital is Bern, while the judicial capital is Geneva.

• The river Rhône originates in Switzerland and flows into the Mediterranean Sea.

• The country has a long-standing tradition of military neutrality and is not a member of the United Nations.

How many of the above statements are incorrect?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: C

• Statement 1 is incorrect. Switzerland is bordered by Germany, France, Italy, Austria, and Liechtenstein, not Belgium.

• Statement 2 is incorrect. The administrative capital is Bern, but the judicial capital (home to the Federal Supreme Court) is Lausanne, not Geneva. Geneva hosts numerous international organizations, including UN bodies.

• Statement 4 is incorrect. While Switzerland has a tradition of neutrality, it became a full member of the United Nations (UN) in 2002.

• Statement 3 is correct. The river Rhône does originate in the Swiss Alps and flows through southeastern France to eventually drain into the Mediterranean Sea.

Solution: C

• Statement 1 is incorrect. Switzerland is bordered by Germany, France, Italy, Austria, and Liechtenstein, not Belgium.

• Statement 4 is incorrect. While Switzerland has a tradition of neutrality, it became a full member of the United Nations (UN) in 2002.

• Statement 3 is correct. The river Rhône does originate in the Swiss Alps and flows through southeastern France to eventually drain into the Mediterranean Sea.

• Question 6 of 10 6. Question 1 points Consider the following statements regarding External Commercial Borrowings (ECBs): The borrowing costs associated with ECBs, including interest and other charges, are subject to a cap imposed by the RBI. Proceeds from ECBs can be used for refinancing existing trade credits and Rupee loans. Which of the above statements are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C Statement 1 is correct. To prevent Indian companies from taking on excessively expensive foreign debt, the RBI imposes a cap on the all-in-cost ceiling for ECBs. This cost includes the rate of interest, other fees, and expenses, ensuring that borrowing remains within prudent limits. Statement 2 is correct. Refinancing of existing loans is a permitted end-use for ECB proceeds. This includes refinancing of existing ECBs, Rupee loans, and trade credits, subject to certain conditions laid down in the regulatory framework. Incorrect Solution: C Statement 1 is correct. To prevent Indian companies from taking on excessively expensive foreign debt, the RBI imposes a cap on the all-in-cost ceiling for ECBs. This cost includes the rate of interest, other fees, and expenses, ensuring that borrowing remains within prudent limits. Statement 2 is correct. Refinancing of existing loans is a permitted end-use for ECB proceeds. This includes refinancing of existing ECBs, Rupee loans, and trade credits, subject to certain conditions laid down in the regulatory framework.

#### 6. Question

Consider the following statements regarding External Commercial Borrowings (ECBs):

• The borrowing costs associated with ECBs, including interest and other charges, are subject to a cap imposed by the RBI.

• Proceeds from ECBs can be used for refinancing existing trade credits and Rupee loans.

Which of the above statements are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• Statement 1 is correct. To prevent Indian companies from taking on excessively expensive foreign debt, the RBI imposes a cap on the all-in-cost ceiling for ECBs. This cost includes the rate of interest, other fees, and expenses, ensuring that borrowing remains within prudent limits.

• Statement 2 is correct. Refinancing of existing loans is a permitted end-use for ECB proceeds. This includes refinancing of existing ECBs, Rupee loans, and trade credits, subject to certain conditions laid down in the regulatory framework.

Solution: C

• Question 7 of 10 7. Question 1 points Consider the following statements: Statement-I: The resolution of the Sir Creek dispute is of significant strategic importance to both India and Pakistan. Statement-II: The demarcation of the creek’s boundary directly impacts the delimitation of the Exclusive Economic Zone (EEZ) and continental shelf in the Arabian Sea, which are rich in resources. Which one of the following is correct in respect of the above statements? a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I c) Statement-I is correct but Statement-II is incorrect d) Statement-I is incorrect but Statement-II is correct Correct Solution: A Both statements are correct, and Statement-II provides the precise reason for the strategic importance mentioned in Statement-I. The Sir Creek dispute is not merely about a 96-km stretch of marshland; its strategic importance (Statement-I) stems from its implications for maritime boundaries. According to the UN Convention on the Law of the Sea (UNCLOS), the way a coastal boundary is defined determines the starting point for mapping a country’s Exclusive Economic Zone (EEZ) and continental shelf. These zones grant a nation sovereign rights over living and non-living resources, including fishing, oil, and natural gas. As Statement-II correctly points out, the demarcation of Sir Creek will determine the extent of these resource-rich maritime zones for both India and Pakistan in the Arabian Sea, making its resolution a high-stakes strategic issue. Incorrect Solution: A Both statements are correct, and Statement-II provides the precise reason for the strategic importance mentioned in Statement-I. The Sir Creek dispute is not merely about a 96-km stretch of marshland; its strategic importance (Statement-I) stems from its implications for maritime boundaries. According to the UN Convention on the Law of the Sea (UNCLOS), the way a coastal boundary is defined determines the starting point for mapping a country’s Exclusive Economic Zone (EEZ) and continental shelf. These zones grant a nation sovereign rights over living and non-living resources, including fishing, oil, and natural gas. As Statement-II correctly points out, the demarcation of Sir Creek will determine the extent of these resource-rich maritime zones for both India and Pakistan in the Arabian Sea, making its resolution a high-stakes strategic issue.

#### 7. Question

Consider the following statements:

Statement-I: The resolution of the Sir Creek dispute is of significant strategic importance to both India and Pakistan.

Statement-II: The demarcation of the creek’s boundary directly impacts the delimitation of the Exclusive Economic Zone (EEZ) and continental shelf in the Arabian Sea, which are rich in resources.

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

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

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

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

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

Solution: A

• Both statements are correct, and Statement-II provides the precise reason for the strategic importance mentioned in Statement-I. The Sir Creek dispute is not merely about a 96-km stretch of marshland; its strategic importance (Statement-I) stems from its implications for maritime boundaries.

• According to the UN Convention on the Law of the Sea (UNCLOS), the way a coastal boundary is defined determines the starting point for mapping a country’s Exclusive Economic Zone (EEZ) and continental shelf. These zones grant a nation sovereign rights over living and non-living resources, including fishing, oil, and natural gas.

• As Statement-II correctly points out, the demarcation of Sir Creek will determine the extent of these resource-rich maritime zones for both India and Pakistan in the Arabian Sea, making its resolution a high-stakes strategic issue.

Solution: A

• Question 8 of 10 8. Question 1 points Consider the following statements regarding India’s framework for External Commercial Borrowings (ECBs): Statement I: India’s framework for External Commercial Borrowings (ECBs) includes both an ‘Automatic Route’ and an ‘Approval Route’. Statement II: The dual-route system is designed to provide operational flexibility for most standard transactions while allowing regulatory oversight for complex or non-standard proposals to ensure alignment with macroeconomic stability. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: A Both statements are correct, and Statement-II provides the policy rationale behind the structure mentioned in Statement-I. Statement-I correctly states the existence of two channels for processing ECB applications: the Automatic Route and the Approval Route. Statement-II explains why this dual structure exists. The Automatic Route offers efficiency and flexibility for borrowers whose proposals meet all the standard, pre-defined criteria (e.g., regarding amount, maturity, all-in-cost). This reduces procedural delays. The Approval Route is reserved for cases that deviate from these norms, requiring specific scrutiny by the RBI. This allows the central bank to exercise regulatory oversight, ensuring that large or unusual foreign borrowings do not pose a risk to the country’s financial and macroeconomic stability. Incorrect Solution: A Both statements are correct, and Statement-II provides the policy rationale behind the structure mentioned in Statement-I. Statement-I correctly states the existence of two channels for processing ECB applications: the Automatic Route and the Approval Route. Statement-II explains why this dual structure exists. The Automatic Route offers efficiency and flexibility for borrowers whose proposals meet all the standard, pre-defined criteria (e.g., regarding amount, maturity, all-in-cost). This reduces procedural delays. The Approval Route is reserved for cases that deviate from these norms, requiring specific scrutiny by the RBI. This allows the central bank to exercise regulatory oversight, ensuring that large or unusual foreign borrowings do not pose a risk to the country’s financial and macroeconomic stability.

#### 8. Question

Consider the following statements regarding India’s framework for External Commercial Borrowings (ECBs):

Statement I: India’s framework for External Commercial Borrowings (ECBs) includes both an ‘Automatic Route’ and an ‘Approval Route’.

Statement II: The dual-route system is designed to provide operational flexibility for most standard transactions while allowing regulatory oversight for complex or non-standard proposals to ensure alignment with macroeconomic stability.

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

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

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

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

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

Solution: A

• Both statements are correct, and Statement-II provides the policy rationale behind the structure mentioned in Statement-I.

• Statement-I correctly states the existence of two channels for processing ECB applications: the Automatic Route and the Approval Route.

• Statement-II explains why this dual structure exists. The Automatic Route offers efficiency and flexibility for borrowers whose proposals meet all the standard, pre-defined criteria (e.g., regarding amount, maturity, all-in-cost). This reduces procedural delays.

• The Approval Route is reserved for cases that deviate from these norms, requiring specific scrutiny by the RBI. This allows the central bank to exercise regulatory oversight, ensuring that large or unusual foreign borrowings do not pose a risk to the country’s financial and macroeconomic stability.

Solution: A

• Both statements are correct, and Statement-II provides the policy rationale behind the structure mentioned in Statement-I.

• Statement-I correctly states the existence of two channels for processing ECB applications: the Automatic Route and the Approval Route.

• Question 9 of 10 9. Question 1 points How many of the following entities are explicitly prohibited from receiving foreign contributions under the Foreign Contribution (Regulation) Act (FCRA)? Candidates for elections Journalists and media companies Members of the Legislature Non-Governmental Organizations (NGOs) Select the correct answer using the code given below: (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: C Statement 1 is correct. Candidates for elections are explicitly barred from receiving foreign funds to prevent foreign influence on the electoral process and maintain the integrity of democratic institutions. Statement 2 is correct. Journalists and media companies are also prohibited from receiving foreign contributions to ensure the independence and impartiality of the media, which is considered the fourth pillar of democracy. Statement 3 is correct. Members of the Legislature are on the prohibited list to prevent them from being influenced by foreign entities in their legislative and policy-making functions. Statement 4 is incorrect. Non-Governmental Organizations (NGOs) are not prohibited from receiving foreign contributions. However, they are required to be registered under the FCRA and obtain a valid license, which is valid for five years. The Act is designed to regulate, not prohibit, the flow of foreign funds to NGOs, ensuring that they are used for legitimate purposes. Incorrect Solution: C Statement 1 is correct. Candidates for elections are explicitly barred from receiving foreign funds to prevent foreign influence on the electoral process and maintain the integrity of democratic institutions. Statement 2 is correct. Journalists and media companies are also prohibited from receiving foreign contributions to ensure the independence and impartiality of the media, which is considered the fourth pillar of democracy. Statement 3 is correct. Members of the Legislature are on the prohibited list to prevent them from being influenced by foreign entities in their legislative and policy-making functions. Statement 4 is incorrect. Non-Governmental Organizations (NGOs) are not prohibited from receiving foreign contributions. However, they are required to be registered under the FCRA and obtain a valid license, which is valid for five years. The Act is designed to regulate, not prohibit, the flow of foreign funds to NGOs, ensuring that they are used for legitimate purposes.

#### 9. Question

How many of the following entities are explicitly prohibited from receiving foreign contributions under the Foreign Contribution (Regulation) Act (FCRA)?

• Candidates for elections

• Journalists and media companies

• Members of the Legislature

• Non-Governmental Organizations (NGOs)

Select the correct answer using the code given below:

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: C

• Statement 1 is correct. Candidates for elections are explicitly barred from receiving foreign funds to prevent foreign influence on the electoral process and maintain the integrity of democratic institutions.

• Statement 2 is correct. Journalists and media companies are also prohibited from receiving foreign contributions to ensure the independence and impartiality of the media, which is considered the fourth pillar of democracy.

• Statement 3 is correct. Members of the Legislature are on the prohibited list to prevent them from being influenced by foreign entities in their legislative and policy-making functions.

• Statement 4 is incorrect. Non-Governmental Organizations (NGOs) are not prohibited from receiving foreign contributions. However, they are required to be registered under the FCRA and obtain a valid license, which is valid for five years. The Act is designed to regulate, not prohibit, the flow of foreign funds to NGOs, ensuring that they are used for legitimate purposes.

Solution: C

• Statement 3 is correct. Members of the Legislature are on the prohibited list to prevent them from being influenced by foreign entities in their legislative and policy-making functions.

• Question 10 of 10 10. Question 1 points Consider the following statements about Ishwar Chandra Vidyasagar: He was a key figure in the Bengal Renaissance and is known as the “Father of Modern Bengali Prose”. He was a strong advocate for women’s rights and played a crucial role in the enactment of the Hindu Widow Remarriage Act, 1856. Which of the above statements are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: D Statement 1 is correct. Ishwar Chandra Vidyasagar was a prominent figure of the Bengal Renaissance and is widely revered as the “Father of Modern Bengali Prose”. His book ‘Borno Porichoy’ modernized the Bengali language and is a testament to his contributions to literature and education. Statement 2 is correct. Vidyasagar was a passionate advocate for women’s rights. He led the campaign for the Hindu Widow Remarriage Act, 1856, which legalized the remarriage of Hindu widows, a practice that was socially forbidden at the time. He also championed the cause of women’s education and founded several schools for girls. Incorrect Solution: D Statement 1 is correct. Ishwar Chandra Vidyasagar was a prominent figure of the Bengal Renaissance and is widely revered as the “Father of Modern Bengali Prose”. His book ‘Borno Porichoy’ modernized the Bengali language and is a testament to his contributions to literature and education. Statement 2 is correct. Vidyasagar was a passionate advocate for women’s rights. He led the campaign for the Hindu Widow Remarriage Act, 1856, which legalized the remarriage of Hindu widows, a practice that was socially forbidden at the time. He also championed the cause of women’s education and founded several schools for girls.

#### 10. Question

Consider the following statements about Ishwar Chandra Vidyasagar:

• He was a key figure in the Bengal Renaissance and is known as the “Father of Modern Bengali Prose”.

• He was a strong advocate for women’s rights and played a crucial role in the enactment of the Hindu Widow Remarriage Act, 1856.

Which of the above statements are incorrect?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: D

• Statement 1 is correct. Ishwar Chandra Vidyasagar was a prominent figure of the Bengal Renaissance and is widely revered as the “Father of Modern Bengali Prose”. His book ‘Borno Porichoy’ modernized the Bengali language and is a testament to his contributions to literature and education.

• Statement 2 is correct. Vidyasagar was a passionate advocate for women’s rights. He led the campaign for the Hindu Widow Remarriage Act, 1856, which legalized the remarriage of Hindu widows, a practice that was socially forbidden at the time. He also championed the cause of women’s education and founded several schools for girls.

Solution: D

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