UPSC Editorials Quiz : 1 July 2024

Introducing QUED – Questions from Editorials (UPSC Editorials Quiz) , an innovative initiative from InsightsIAS. Considering the significant number of questions in previous UPSC Prelims from editorials, practicing MCQs from this perspective can provide an extra edge. While we cover important editorials separately in our Editorial Section and SECURE Initiative, adding QUED (UPSC Editorials Quiz) to your daily MCQ practice alongside Static Quiz, Current Affairs Quiz, and InstaDART can be crucial for better performance. We recommend utilizing this initiative to enhance your preparation, with 5 MCQs posted daily at 11 am from Monday to Saturday on our website under the QUIZ menu.

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• Question 1 of 5 1. Question Consider the following statements regarding Renewable energy certificates (REC). The renewable energy certificates (REC) mechanism allows utilities to meet renewable purchase obligations (RPOs) by buying RECs, each representing 1 kWh of renewable electricity. This system benefits states that lack sufficient renewable capacity. Utilities that exceed renewable purchase obligation (RPO) targets can trade extra RECs to allow other utilities to meet their targets. 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 incorrect. The renewable energy certificates (REC) mechanism allows utilities to meet renewable purchase obligations (RPOs) by buying RECs, each representing 1 MWh of renewable electricity. This system benefits states that lack sufficient renewable capacity, and enables them to purchase RECs for green energy generated elsewhere. Utilities that exceed RPO targets can trade extra RECs to allow other utilities to meet their targets. Source Incorrect Solution: b) Statement 1 is incorrect. The renewable energy certificates (REC) mechanism allows utilities to meet renewable purchase obligations (RPOs) by buying RECs, each representing 1 MWh of renewable electricity. This system benefits states that lack sufficient renewable capacity, and enables them to purchase RECs for green energy generated elsewhere. Utilities that exceed RPO targets can trade extra RECs to allow other utilities to meet their targets. Source

#### 1. Question

Consider the following statements regarding Renewable energy certificates (REC).

• The renewable energy certificates (REC) mechanism allows utilities to meet renewable purchase obligations (RPOs) by buying RECs, each representing 1 kWh of renewable electricity.

• This system benefits states that lack sufficient renewable capacity.

• Utilities that exceed renewable purchase obligation (RPO) targets can trade extra RECs to allow other utilities to meet their targets.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: b)

Statement 1 is incorrect.

The renewable energy certificates (REC) mechanism allows utilities to meet renewable purchase obligations (RPOs) by buying RECs, each representing 1 MWh of renewable electricity. This system benefits states that lack sufficient renewable capacity, and enables them to purchase RECs for green energy generated elsewhere.

Utilities that exceed RPO targets can trade extra RECs to allow other utilities to meet their targets.

Solution: b)

Statement 1 is incorrect.

Utilities that exceed RPO targets can trade extra RECs to allow other utilities to meet their targets.

• Question 2 of 5 2. Question Consider the following statements Power exchanges in India. Power exchanges facilitate competitive pricing and greater market liquidity in the power sector. The Electricity Act of 2003 established the framework for exchange operations in India. Indian Energy Exchange Ltd (IEX) is the only power exchange in India, regulated by the Central Electricity Regulatory Commission (CERC). How many of the above statements is/are correct? (a) Only one (b) Only two c) All three d) None Correct Solution: b) Statement 3 is incorrect. Power markets are hosted on a power exchange. Exchanges facilitate competitive pricing, improved resource allocation, and greater market liquidity in the power sector. Power exchanges were first introduced in Europe in 1990-91, and they now operate in about 50 countries around the world. The Electricity Act of 2003 established the framework for exchange operations in India, and exchanges commenced in 2008. The spot market was introduced in 2020, which further enhanced the flexibility and responsiveness of the power trading system. India has three major power exchanges regulated by the Central Electricity Regulatory Commission (CERC), where generators, utilities, and large consumers trade electricity. The Indian Energy Exchange Ltd (IEX) dominates with more than 90% market share, followed by Power Exchange India Limited (PXIL) and Hindustan Power Exchange Ltd (HPX). Source Incorrect Solution: b) Statement 3 is incorrect. Power markets are hosted on a power exchange. Exchanges facilitate competitive pricing, improved resource allocation, and greater market liquidity in the power sector. Power exchanges were first introduced in Europe in 1990-91, and they now operate in about 50 countries around the world. The Electricity Act of 2003 established the framework for exchange operations in India, and exchanges commenced in 2008. The spot market was introduced in 2020, which further enhanced the flexibility and responsiveness of the power trading system. India has three major power exchanges regulated by the Central Electricity Regulatory Commission (CERC), where generators, utilities, and large consumers trade electricity. The Indian Energy Exchange Ltd (IEX) dominates with more than 90% market share, followed by Power Exchange India Limited (PXIL) and Hindustan Power Exchange Ltd (HPX). Source

#### 2. Question

Consider the following statements Power exchanges in India.

• Power exchanges facilitate competitive pricing and greater market liquidity in the power sector.

• The Electricity Act of 2003 established the framework for exchange operations in India.

• Indian Energy Exchange Ltd (IEX) is the only power exchange in India, regulated by the Central Electricity Regulatory Commission (CERC).

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• c) All three

Solution: b)

Statement 3 is incorrect.

Power markets are hosted on a power exchange. Exchanges facilitate competitive pricing, improved resource allocation, and greater market liquidity in the power sector.

Power exchanges were first introduced in Europe in 1990-91, and they now operate in about 50 countries around the world. The Electricity Act of 2003 established the framework for exchange operations in India, and exchanges commenced in 2008.

The spot market was introduced in 2020, which further enhanced the flexibility and responsiveness of the power trading system.

India has three major power exchanges regulated by the Central Electricity Regulatory Commission (CERC), where generators, utilities, and large consumers trade electricity. The Indian Energy Exchange Ltd (IEX) dominates with more than 90% market share, followed by Power Exchange India Limited (PXIL) and Hindustan Power Exchange Ltd (HPX).

Solution: b)

Statement 3 is incorrect.

Power markets are hosted on a power exchange. Exchanges facilitate competitive pricing, improved resource allocation, and greater market liquidity in the power sector.

The spot market was introduced in 2020, which further enhanced the flexibility and responsiveness of the power trading system.

• Question 3 of 5 3. Question Consider the following statements regarding Money Market. The money market provides investment avenues of short-term tenor. The tenor of the transactions for Term money market is from 2 days to 14 days. Call money market is a market for uncollateralized lending and borrowing of funds. How many of the above statements is/are incorrect? a) Only one b) Only two c) All three d) None Correct Solution: a) Statement 2 is incorrect. What is Money Market? While the G-Secs market generally caters to the investors with a long-term investment horizon, the money market provides investment avenues of short-term tenor. Money market transactions are generally used for funding the transactions in other markets including G-Secs market and meeting short term liquidity mismatches. By definition, money market is for a maximum tenor of one year. Within the one year, depending upon the tenors, money market is classified into: Overnight market – The tenor of transactions is one working day. Notice money market – The tenor of the transactions is from 2 days to 14 days. Term money market – The tenor of the transactions is from 15 days to one year. What are the different money market instruments? Money market instruments include call money, repos, T- Bills, Cash Management Bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO). Call money market: Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation to scheduled commercial banks and the primary dealers. Incorrect Solution: a) Statement 2 is incorrect. What is Money Market? While the G-Secs market generally caters to the investors with a long-term investment horizon, the money market provides investment avenues of short-term tenor. Money market transactions are generally used for funding the transactions in other markets including G-Secs market and meeting short term liquidity mismatches. By definition, money market is for a maximum tenor of one year. Within the one year, depending upon the tenors, money market is classified into: Overnight market – The tenor of transactions is one working day. Notice money market – The tenor of the transactions is from 2 days to 14 days. Term money market – The tenor of the transactions is from 15 days to one year. What are the different money market instruments? Money market instruments include call money, repos, T- Bills, Cash Management Bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO). Call money market: Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation to scheduled commercial banks and the primary dealers.

#### 3. Question

Consider the following statements regarding Money Market.

• The money market provides investment avenues of short-term tenor.

• The tenor of the transactions for Term money market is from 2 days to 14 days.

• Call money market is a market for uncollateralized lending and borrowing of funds.

How many of the above statements is/are incorrect?

• a) Only one

• b) Only two

• c) All three

Solution: a)

Statement 2 is incorrect.

What is Money Market?

While the G-Secs market generally caters to the investors with a long-term investment horizon, the money market provides investment avenues of short-term tenor. Money market transactions are generally used for funding the transactions in other markets including G-Secs market and meeting short term liquidity mismatches. By definition, money market is for a maximum tenor of one year. Within the one year, depending upon the tenors, money market is classified into:

Overnight market – The tenor of transactions is one working day.

Notice money market – The tenor of the transactions is from 2 days to 14 days.

Term money market – The tenor of the transactions is from 15 days to one year.

What are the different money market instruments?

Money market instruments include call money, repos, T- Bills, Cash Management Bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO).

Call money market:

Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation to scheduled commercial banks and the primary dealers.

Solution: a)

Statement 2 is incorrect.

What is Money Market?

Overnight market – The tenor of transactions is one working day.

Notice money market – The tenor of the transactions is from 2 days to 14 days.

Term money market – The tenor of the transactions is from 15 days to one year.

What are the different money market instruments?

Money market instruments include call money, repos, T- Bills, Cash Management Bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO).

Call money market:

• Question 4 of 5 4. Question Consider the following statements regarding Nilgiri Tahr. It is endemic to Western Ghats. Project Nilgiri Tahr is an initiative by Wildlife Crime Control Bureau, that aims to restore the fragmented habitat of Shola grasslands where Nilgiri Tahr thrives. It is the State animal of Kerala. How many of the above statements is/are correct? a) Only one b) Only two c) All three d) None Correct Solution: a) Only Statement 1 is correct. Incorrect Solution: a) Only Statement 1 is correct.

#### 4. Question

Consider the following statements regarding Nilgiri Tahr.

• It is endemic to Western Ghats.

• Project Nilgiri Tahr is an initiative by Wildlife Crime Control Bureau, that aims to restore the fragmented habitat of Shola grasslands where Nilgiri Tahr thrives.

• It is the State animal of Kerala.

How many of the above statements is/are correct?

• a) Only one

• b) Only two

• c) All three

Solution: a)

Only Statement 1 is correct.

Solution: a)

Only Statement 1 is correct.

• Question 5 of 5 5. Question Consider the following statements regarding Critical minerals. Critical minerals are those that are essential for economic development and national security, and the lack of availability of these minerals could potentially lead to “supply chain vulnerabilities and even disruption of supplies”. Lithium, graphite, cobalt and titanium are considered as Critical minerals. Only metallic minerals are considered as Critical minerals and not non-metallic minerals. How many of the above statements are incorrect? a) Only one b) Only two c) All three d) None Correct Solution: a) Statement 3 is incorrect. Critical minerals These are minerals that are essential for economic development and national security, and the lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to “supply chain vulnerabilities and even disruption of supplies”. This is true for minerals such as lithium, graphite, cobalt, titanium, and rare earth elements, which are essential for the advancement of many sectors, including hightech electronics, telecommunications, transport, and defence. Australia refers to critical minerals as: “metals, non-metals and minerals that are considered vital for the economic well-being of the world’s major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors”. Incorrect Solution: a) Statement 3 is incorrect. Critical minerals These are minerals that are essential for economic development and national security, and the lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to “supply chain vulnerabilities and even disruption of supplies”. This is true for minerals such as lithium, graphite, cobalt, titanium, and rare earth elements, which are essential for the advancement of many sectors, including hightech electronics, telecommunications, transport, and defence. Australia refers to critical minerals as: “metals, non-metals and minerals that are considered vital for the economic well-being of the world’s major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors”.

#### 5. Question

Consider the following statements regarding Critical minerals.

• Critical minerals are those that are essential for economic development and national security, and the lack of availability of these minerals could potentially lead to “supply chain vulnerabilities and even disruption of supplies”.

• Lithium, graphite, cobalt and titanium are considered as Critical minerals.

• Only metallic minerals are considered as Critical minerals and not non-metallic minerals.

How many of the above statements are incorrect?

• a) Only one

• b) Only two

• c) All three

Solution: a)

Statement 3 is incorrect.

Critical minerals

These are minerals that are essential for economic development and national security, and the lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to “supply chain vulnerabilities and even disruption of supplies”. This is true for minerals such as lithium, graphite, cobalt, titanium, and rare earth elements, which are essential for the advancement of many sectors, including hightech electronics, telecommunications, transport, and defence.

Australia refers to critical minerals as: “metals, non-metals and minerals that are considered vital for the economic well-being of the world’s major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors”.

Solution: a)

Statement 3 is incorrect.

Critical minerals

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