UPSC Editorials Quiz : 23 February 2026
Kartavya Desk Staff
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 regarding the Price Deficit Payment Scheme (PDPS) under PM-AASHA? Farmers are compensated when market prices fall below the MSP. It involves procurement of crops by the government to stabilize market prices. The scheme applies to non-MSP crops as well. How many of the above statements is/are incorrect? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The Price Deficit Payment Scheme (PDPS), under the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), compensates farmers when the market price of their produce falls below the Minimum Support Price (MSP). This ensures that farmers receive financial assistance to make up for the difference between the MSP and the market price, making statement 1 correct. However, unlike other schemes such as the Price Support Scheme (PSS), PDPS does not involve the procurement of crops by the government to stabilize market prices. Instead, the focus is on compensating farmers for price shortfalls, making statement 2 incorrect. The PDPS is limited to crops covered under the MSP, meaning it does not apply to non-MSP crops, making statement 3 incorrect. Incorrect Solution: B The Price Deficit Payment Scheme (PDPS), under the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), compensates farmers when the market price of their produce falls below the Minimum Support Price (MSP). This ensures that farmers receive financial assistance to make up for the difference between the MSP and the market price, making statement 1 correct. However, unlike other schemes such as the Price Support Scheme (PSS), PDPS does not involve the procurement of crops by the government to stabilize market prices. Instead, the focus is on compensating farmers for price shortfalls, making statement 2 incorrect. The PDPS is limited to crops covered under the MSP, meaning it does not apply to non-MSP crops, making statement 3 incorrect.
#### 1. Question
Consider the following statements regarding regarding the Price Deficit Payment Scheme (PDPS) under PM-AASHA?
• Farmers are compensated when market prices fall below the MSP.
• It involves procurement of crops by the government to stabilize market prices.
• The scheme applies to non-MSP crops as well.
How many of the above statements is/are incorrect?
• (a) Only one
• (b) Only two
• (c) All three
Solution: B
The Price Deficit Payment Scheme (PDPS), under the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), compensates farmers when the market price of their produce falls below the Minimum Support Price (MSP). This ensures that farmers receive financial assistance to make up for the difference between the MSP and the market price, making statement 1 correct.
However, unlike other schemes such as the Price Support Scheme (PSS), PDPS does not involve the procurement of crops by the government to stabilize market prices. Instead, the focus is on compensating farmers for price shortfalls, making statement 2 incorrect.
The PDPS is limited to crops covered under the MSP, meaning it does not apply to non-MSP crops, making statement 3 incorrect.
Solution: B
The Price Deficit Payment Scheme (PDPS), under the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), compensates farmers when the market price of their produce falls below the Minimum Support Price (MSP). This ensures that farmers receive financial assistance to make up for the difference between the MSP and the market price, making statement 1 correct.
However, unlike other schemes such as the Price Support Scheme (PSS), PDPS does not involve the procurement of crops by the government to stabilize market prices. Instead, the focus is on compensating farmers for price shortfalls, making statement 2 incorrect.
The PDPS is limited to crops covered under the MSP, meaning it does not apply to non-MSP crops, making statement 3 incorrect.
• Question 2 of 5 2. Question Consider the following statements regarding volcanic gases: Carbon dioxide emissions from volcanic eruptions are the primary cause of global warming. Volcanic gases such as sulfur dioxide can cause acid rain and atmospheric cooling. Water vapor is the least abundant gas emitted during volcanic eruptions. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 2 is correct as sulfur dioxide from volcanoes can cause acid rain and reflect sunlight, leading to temporary global cooling. Statement 1 is incorrect because anthropogenic CO₂ emissions contribute far more to global warming than volcanic CO₂. Statement 3 is incorrect because water vapor is the most abundant volcanic gas. Incorrect Solution: A Statement 2 is correct as sulfur dioxide from volcanoes can cause acid rain and reflect sunlight, leading to temporary global cooling. Statement 1 is incorrect because anthropogenic CO₂ emissions contribute far more to global warming than volcanic CO₂. Statement 3 is incorrect because water vapor is the most abundant volcanic gas.
#### 2. Question
Consider the following statements regarding volcanic gases:
• Carbon dioxide emissions from volcanic eruptions are the primary cause of global warming.
• Volcanic gases such as sulfur dioxide can cause acid rain and atmospheric cooling.
• Water vapor is the least abundant gas emitted during volcanic eruptions.
How many of the above statements is/are correct?
• (a) Only one
• (b) Only two
• (c) All three
Solution: A
Statement 2 is correct as sulfur dioxide from volcanoes can cause acid rain and reflect sunlight, leading to temporary global cooling.
Statement 1 is incorrect because anthropogenic CO₂ emissions contribute far more to global warming than volcanic CO₂.
Statement 3 is incorrect because water vapor is the most abundant volcanic gas.
Solution: A
Statement 2 is correct as sulfur dioxide from volcanoes can cause acid rain and reflect sunlight, leading to temporary global cooling.
Statement 1 is incorrect because anthropogenic CO₂ emissions contribute far more to global warming than volcanic CO₂.
Statement 3 is incorrect because water vapor is the most abundant volcanic gas.
• Question 3 of 5 3. Question Consider the following statements regarding the impact of Rupee-Dollar Swap Auctions on the Indian economy: These swaps improve banking system liquidity by injecting or absorbing rupees. They help stabilize the exchange rate by reducing currency volatility. Swap auctions are directly used by the RBI to control inflation. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three d) None Correct Solution: B Statements 1 and 2 are correct as swaps affect liquidity, stabilize exchange rates, and can increase forex reserves. Statement 3 is incorrect because while swap auctions can influence liquidity and exchange rates, they are not a direct inflation control tool. About Rupee & Dollar Swap Auctions: It is a tool used by RBI to manage liquidity in the economy and stabilize currency volatility. Banks sell US dollars to RBI in exchange for rupees in the first leg and agree to repurchase dollars at a future date. Who Conducts It? The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions. How It Works? First Leg (Buy Phase): Banks sell USD to RBI and receive Indian Rupees (INR). Reverse Leg (Sell Phase): Banks buy back USD from RBI at a pre-determined price at the end of the swap period. Key Features of the Swap: Tenor: Can be short-term (6 months) or long-term (3 years or more). Liquidity Management: Used to infuse or absorb rupee liquidity in the system. Forex Reserve Utilization: RBI uses its forex reserves to regulate currency flows. Impact on Exchange Rate: Helps stabilize rupee fluctuations against the dollar. Impact on the Indian Economy: Improves Banking Liquidity: Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore. Enhances Monetary Policy Transmission: Ensures that interest rates in money markets align with RBI’s policy stance. Strengthens the Rupee: Reduces depreciation pressure on INR due to forex market fluctuations. Supports Economic Growth: Enables banks to lend more to businesses and industries, promoting investment and consumption. Controls Inflation Risks: Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations. Incorrect Solution: B Statements 1 and 2 are correct as swaps affect liquidity, stabilize exchange rates, and can increase forex reserves. Statement 3 is incorrect because while swap auctions can influence liquidity and exchange rates, they are not a direct inflation control tool. About Rupee & Dollar Swap Auctions: It is a tool used by RBI to manage liquidity in the economy and stabilize currency volatility. Banks sell US dollars to RBI in exchange for rupees in the first leg and agree to repurchase dollars at a future date. Who Conducts It? The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions. How It Works? First Leg (Buy Phase): Banks sell USD to RBI and receive Indian Rupees (INR). Reverse Leg (Sell Phase): Banks buy back USD from RBI at a pre-determined price at the end of the swap period. Key Features of the Swap: Tenor: Can be short-term (6 months) or long-term (3 years or more). Liquidity Management: Used to infuse or absorb rupee liquidity in the system. Forex Reserve Utilization: RBI uses its forex reserves to regulate currency flows. Impact on Exchange Rate: Helps stabilize rupee fluctuations against the dollar. Impact on the Indian Economy: Improves Banking Liquidity: Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore. Enhances Monetary Policy Transmission: Ensures that interest rates in money markets align with RBI’s policy stance. Strengthens the Rupee: Reduces depreciation pressure on INR due to forex market fluctuations. Supports Economic Growth: Enables banks to lend more to businesses and industries, promoting investment and consumption. Controls Inflation Risks: Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations.
#### 3. Question
Consider the following statements regarding the impact of Rupee-Dollar Swap Auctions on the Indian economy:
• These swaps improve banking system liquidity by injecting or absorbing rupees.
• They help stabilize the exchange rate by reducing currency volatility.
• Swap auctions are directly used by the RBI to control inflation.
How many of the above statements is/are correct?
• (a) Only one
• (b) Only two
• (c) All three
Solution: B
Statements 1 and 2 are correct as swaps affect liquidity, stabilize exchange rates, and can increase forex reserves.
Statement 3 is incorrect because while swap auctions can influence liquidity and exchange rates, they are not a direct inflation control tool.
About Rupee & Dollar Swap Auctions:
• It is a tool used by RBI to manage liquidity in the economy and stabilize currency volatility.
• Banks sell US dollars to RBI in exchange for rupees in the first leg and agree to repurchase dollars at a future date.
• Who Conducts It?
• The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions.
• The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions.
• How It Works?
• First Leg (Buy Phase): Banks sell USD to RBI and receive Indian Rupees (INR). Reverse Leg (Sell Phase): Banks buy back USD from RBI at a pre-determined price at the end of the swap period.
• First Leg (Buy Phase): Banks sell USD to RBI and receive Indian Rupees (INR).
• Reverse Leg (Sell Phase): Banks buy back USD from RBI at a pre-determined price at the end of the swap period.
• Key Features of the Swap:
• Tenor: Can be short-term (6 months) or long-term (3 years or more). Liquidity Management: Used to infuse or absorb rupee liquidity in the system. Forex Reserve Utilization: RBI uses its forex reserves to regulate currency flows. Impact on Exchange Rate: Helps stabilize rupee fluctuations against the dollar.
• Tenor: Can be short-term (6 months) or long-term (3 years or more).
• Liquidity Management: Used to infuse or absorb rupee liquidity in the system.
• Forex Reserve Utilization: RBI uses its forex reserves to regulate currency flows.
• Impact on Exchange Rate: Helps stabilize rupee fluctuations against the dollar.
• Impact on the Indian Economy: Improves Banking Liquidity: Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore. Enhances Monetary Policy Transmission: Ensures that interest rates in money markets align with RBI’s policy stance. Strengthens the Rupee: Reduces depreciation pressure on INR due to forex market fluctuations. Supports Economic Growth: Enables banks to lend more to businesses and industries, promoting investment and consumption. Controls Inflation Risks: Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations.
• Improves Banking Liquidity: Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore.
• Enhances Monetary Policy Transmission: Ensures that interest rates in money markets align with RBI’s policy stance.
• Strengthens the Rupee: Reduces depreciation pressure on INR due to forex market fluctuations.
• Supports Economic Growth: Enables banks to lend more to businesses and industries, promoting investment and consumption.
• Controls Inflation Risks: Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations.
Solution: B
Statements 1 and 2 are correct as swaps affect liquidity, stabilize exchange rates, and can increase forex reserves.
Statement 3 is incorrect because while swap auctions can influence liquidity and exchange rates, they are not a direct inflation control tool.
About Rupee & Dollar Swap Auctions:
• It is a tool used by RBI to manage liquidity in the economy and stabilize currency volatility.
• Banks sell US dollars to RBI in exchange for rupees in the first leg and agree to repurchase dollars at a future date.
• Who Conducts It?
• The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions.
• The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions.
• How It Works?
• First Leg (Buy Phase): Banks sell USD to RBI and receive Indian Rupees (INR). Reverse Leg (Sell Phase): Banks buy back USD from RBI at a pre-determined price at the end of the swap period.
• First Leg (Buy Phase): Banks sell USD to RBI and receive Indian Rupees (INR).
• Reverse Leg (Sell Phase): Banks buy back USD from RBI at a pre-determined price at the end of the swap period.
• Key Features of the Swap:
• Tenor: Can be short-term (6 months) or long-term (3 years or more). Liquidity Management: Used to infuse or absorb rupee liquidity in the system. Forex Reserve Utilization: RBI uses its forex reserves to regulate currency flows. Impact on Exchange Rate: Helps stabilize rupee fluctuations against the dollar.
• Tenor: Can be short-term (6 months) or long-term (3 years or more).
• Liquidity Management: Used to infuse or absorb rupee liquidity in the system.
• Forex Reserve Utilization: RBI uses its forex reserves to regulate currency flows.
• Impact on Exchange Rate: Helps stabilize rupee fluctuations against the dollar.
• Impact on the Indian Economy: Improves Banking Liquidity: Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore. Enhances Monetary Policy Transmission: Ensures that interest rates in money markets align with RBI’s policy stance. Strengthens the Rupee: Reduces depreciation pressure on INR due to forex market fluctuations. Supports Economic Growth: Enables banks to lend more to businesses and industries, promoting investment and consumption. Controls Inflation Risks: Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations.
• Improves Banking Liquidity: Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore.
• Enhances Monetary Policy Transmission: Ensures that interest rates in money markets align with RBI’s policy stance.
• Strengthens the Rupee: Reduces depreciation pressure on INR due to forex market fluctuations.
• Supports Economic Growth: Enables banks to lend more to businesses and industries, promoting investment and consumption.
• Controls Inflation Risks: Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations.
• Question 4 of 5 4. Question Consider the following statements regarding Purchasing Managers’ Index (PMI’s) significance for economic analysis: PMI is a leading indicator, providing early signals about business cycle changes. Central banks use PMI to make monetary policy decisions. PMI is highly correlated with GDP growth and stock market performance. PMI measures inflation trends directly by analyzing consumer price movements. How many of the above statements is/are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: C Statements 1, 2, and 3 are correct as PMI acts as a leading indicator, influences monetary policy decisions, and correlates with GDP and markets. Statement 4 is incorrect because PMI does not directly measure inflation; it tracks business activity and supply chain conditions, which may have an indirect inflationary effect. About Purchasing Managers’ Index (PMI): What is PMI? PMI (Purchasing Managers’ Index) is an economic indicator derived from monthly business surveys. It measures activity at the purchasing/input stage, unlike IIP (Index of Industrial Production), which tracks actual output. There are two types: Manufacturing PMI – Tracks industrial and factory activity. Services PMI – Assesses the growth in the services sector. PMI above 50 indicates economic expansion, while below 50 signals contraction. Who Releases PMI in India? S&P Global (earlier released by IHS Markit) conducts PMI surveys in India. Based on a survey of 500 manufacturing companies for the Manufacturing PMI. PMI Calculation Methodology: Derived from qualitative responses of purchasing managers. Five key indicators with assigned weights: Incorrect Solution: C Statements 1, 2, and 3 are correct as PMI acts as a leading indicator, influences monetary policy decisions, and correlates with GDP and markets. Statement 4 is incorrect because PMI does not directly measure inflation; it tracks business activity and supply chain conditions, which may have an indirect inflationary effect. About Purchasing Managers’ Index (PMI): What is PMI? PMI (Purchasing Managers’ Index) is an economic indicator derived from monthly business surveys. It measures activity at the purchasing/input stage, unlike IIP (Index of Industrial Production), which tracks actual output. There are two types: Manufacturing PMI – Tracks industrial and factory activity. Services PMI – Assesses the growth in the services sector. PMI above 50 indicates economic expansion, while below 50 signals contraction. Who Releases PMI in India? S&P Global (earlier released by IHS Markit) conducts PMI surveys in India. Based on a survey of 500 manufacturing companies for the Manufacturing PMI. PMI Calculation Methodology: Derived from qualitative responses of purchasing managers. Five key indicators with assigned weights:
#### 4. Question
Consider the following statements regarding Purchasing Managers’ Index (PMI’s) significance for economic analysis:
• PMI is a leading indicator, providing early signals about business cycle changes.
• Central banks use PMI to make monetary policy decisions.
• PMI is highly correlated with GDP growth and stock market performance.
• PMI measures inflation trends directly by analyzing consumer price movements.
How many of the above statements is/are correct?
• (a) Only one
• (b) Only two
• (c) Only three
• (d) All four
Solution: C
Statements 1, 2, and 3 are correct as PMI acts as a leading indicator, influences monetary policy decisions, and correlates with GDP and markets.
Statement 4 is incorrect because PMI does not directly measure inflation; it tracks business activity and supply chain conditions, which may have an indirect inflationary effect.
About Purchasing Managers’ Index (PMI):
• What is PMI?
• PMI (Purchasing Managers’ Index) is an economic indicator derived from monthly business surveys. It measures activity at the purchasing/input stage, unlike IIP (Index of Industrial Production), which tracks actual output. There are two types: Manufacturing PMI – Tracks industrial and factory activity. Services PMI – Assesses the growth in the services sector. PMI above 50 indicates economic expansion, while below 50 signals contraction.
• PMI (Purchasing Managers’ Index) is an economic indicator derived from monthly business surveys.
• It measures activity at the purchasing/input stage, unlike IIP (Index of Industrial Production), which tracks actual output.
• There are two types: Manufacturing PMI – Tracks industrial and factory activity. Services PMI – Assesses the growth in the services sector.
• Manufacturing PMI – Tracks industrial and factory activity.
• Services PMI – Assesses the growth in the services sector.
• PMI above 50 indicates economic expansion, while below 50 signals contraction.
• Who Releases PMI in India?
• S&P Global (earlier released by IHS Markit) conducts PMI surveys in India. Based on a survey of 500 manufacturing companies for the Manufacturing PMI.
• S&P Global (earlier released by IHS Markit) conducts PMI surveys in India.
• Based on a survey of 500 manufacturing companies for the Manufacturing PMI.
• PMI Calculation Methodology:
• Derived from qualitative responses of purchasing managers. Five key indicators with assigned weights:
• Derived from qualitative responses of purchasing managers.
• Five key indicators with assigned weights:
Solution: C
Statements 1, 2, and 3 are correct as PMI acts as a leading indicator, influences monetary policy decisions, and correlates with GDP and markets.
Statement 4 is incorrect because PMI does not directly measure inflation; it tracks business activity and supply chain conditions, which may have an indirect inflationary effect.
About Purchasing Managers’ Index (PMI):
• What is PMI?
• PMI (Purchasing Managers’ Index) is an economic indicator derived from monthly business surveys. It measures activity at the purchasing/input stage, unlike IIP (Index of Industrial Production), which tracks actual output. There are two types: Manufacturing PMI – Tracks industrial and factory activity. Services PMI – Assesses the growth in the services sector. PMI above 50 indicates economic expansion, while below 50 signals contraction.
• PMI (Purchasing Managers’ Index) is an economic indicator derived from monthly business surveys.
• It measures activity at the purchasing/input stage, unlike IIP (Index of Industrial Production), which tracks actual output.
• There are two types: Manufacturing PMI – Tracks industrial and factory activity. Services PMI – Assesses the growth in the services sector.
• Manufacturing PMI – Tracks industrial and factory activity.
• Services PMI – Assesses the growth in the services sector.
• PMI above 50 indicates economic expansion, while below 50 signals contraction.
• Who Releases PMI in India?
• S&P Global (earlier released by IHS Markit) conducts PMI surveys in India. Based on a survey of 500 manufacturing companies for the Manufacturing PMI.
• S&P Global (earlier released by IHS Markit) conducts PMI surveys in India.
• Based on a survey of 500 manufacturing companies for the Manufacturing PMI.
• PMI Calculation Methodology:
• Derived from qualitative responses of purchasing managers. Five key indicators with assigned weights:
• Derived from qualitative responses of purchasing managers.
• Five key indicators with assigned weights:
• Question 5 of 5 5. Question The Pir Panjal Range is significant for which of the following reasons? (a) It is an extension of the Eastern Himalayas into Himachal Pradesh and Uttarakhand. (b) It is part of the Shivalik Hills, forming the outermost range of the Himalayas. (c) It separates the Kashmir Valley from the outer Himalayas and plains. (d) It forms the main water divide between the Ganges and Indus river systems. Correct Solution: C The Pir Panjal Range separates the Kashmir Valley from the outer Himalayas and extends across Himachal Pradesh and Jammu & Kashmir. Option a is incorrect as the Pir Panjal Range is part of the Western Himalayas, not the Eastern Himalayas. Option b is incorrect because it belongs to the Lesser Himalayas, not the Shivaliks. Option d is incorrect because it does not form the water divide between the Ganges and Indus. Incorrect Solution: C The Pir Panjal Range separates the Kashmir Valley from the outer Himalayas and extends across Himachal Pradesh and Jammu & Kashmir. Option a is incorrect as the Pir Panjal Range is part of the Western Himalayas, not the Eastern Himalayas. Option b is incorrect because it belongs to the Lesser Himalayas, not the Shivaliks. Option d is incorrect because it does not form the water divide between the Ganges and Indus.
#### 5. Question
The Pir Panjal Range is significant for which of the following reasons?
• (a) It is an extension of the Eastern Himalayas into Himachal Pradesh and Uttarakhand.
• (b) It is part of the Shivalik Hills, forming the outermost range of the Himalayas.
• (c) It separates the Kashmir Valley from the outer Himalayas and plains.
• (d) It forms the main water divide between the Ganges and Indus river systems.
Solution: C
The Pir Panjal Range separates the Kashmir Valley from the outer Himalayas and extends across Himachal Pradesh and Jammu & Kashmir.
Option a is incorrect as the Pir Panjal Range is part of the Western Himalayas, not the Eastern Himalayas.
Option b is incorrect because it belongs to the Lesser Himalayas, not the Shivaliks.
Option d is incorrect because it does not form the water divide between the Ganges and Indus.
Solution: C
The Pir Panjal Range separates the Kashmir Valley from the outer Himalayas and extends across Himachal Pradesh and Jammu & Kashmir.
Option a is incorrect as the Pir Panjal Range is part of the Western Himalayas, not the Eastern Himalayas.
Option b is incorrect because it belongs to the Lesser Himalayas, not the Shivaliks.
Option d is incorrect because it does not form the water divide between the Ganges and Indus.
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