Economy

Correct answer: (C) Money market

Collateralised Borrowing and Lending Obligation (CBLO) is a short-term, collateral-backed money market instrument developed by CCIL and used by banks and financial institutions for short-tenure borrowing and lending. As it deals in short-term funds, it belongs to the money market, making option (c) correct.

Correct answer: (D) the average number of live births a woman would have by the end of her child-bearing age.

The Total Fertility Rate (TFR) is defined as the average number of live births a woman would have by the end of her child-bearing years (roughly 15 to 49), assuming prevailing age-specific fertility rates. It is not the crude birth rate (births per 1000 people), nor the natural growth rate (birth minus death rate), so option (d) is the correct definition.

Correct answer: (C) 1, 2 and 3

All three statements are accepted as correct per the official key. NBFCs (specifically certain categories) can access the RBI's liquidity facilities/LAF window (statement 1), Foreign Institutional/Portfolio Investors are permitted to hold Government Securities within prescribed limits (statement 2), and stock exchanges operate separate/dedicated debt trading platforms (statement 3). Hence option (c), 1, 2 and 3.

Correct answer: (D) 1, 2 and 3

Insurance companies and pension funds are major institutional participants in the corporate bond and government securities markets, and retail investors can also trade in G-Secs (through avenues like the RBI Retail Direct scheme) and corporate bonds. Since all three categories can participate, option (d), 1, 2 and 3, is correct.

Correct answer: (D) 1 and 3 only

A financial instrument is a tradable asset representing a monetary contract. Exchange-Traded Funds (units representing a basket of securities) and currency swaps (derivative contracts) are financial instruments, whereas motor vehicles are physical/real assets, not financial instruments. Therefore only 1 and 3 qualify, making option (d) correct.

Correct answer: (B) Only two

Checking each pair: storage of agricultural produce is a service and belongs to the tertiary sector, not secondary (wrong); a dairy farm is a primary-sector activity (correct); mineral exploration/extraction is a primary-sector activity, not tertiary (wrong); and weaving cloth is manufacturing, hence secondary (correct). Two pairs are correctly matched, so option (b) is correct.

Correct answer: (B) Only two

Fixed capital is used repeatedly over years (tools, machines, buildings), while working capital is used up in a single production cycle (raw materials, money, fuel). A farmer's plough is a durable tool, so it is fixed capital, not working capital (wrong); a computer is fixed capital (correct); yarn is a raw material consumed in weaving, so it is working capital, not fixed capital (wrong); petrol is consumed in one use, so it is working capital (correct). Two pairs match, giving option (b).

Correct answer: (D) Neither 1 nor 2

Both statements are incorrect. Statement 1 is false because RBI does prescribe a minimum capital requirement (initial minimum paid-up capital of Rs 500 crore) for wholly owned banking subsidiaries of foreign banks in India. Statement 2 is false because RBI requires that not less than 50% of the directors be Indian nationals, but the correctly stated norm concerns majority/independent-director composition, and the specific figure/framing given is not the rule as worded. Hence neither is correct, option (d).

Correct answer: (A) 1 only

Statement 1 is correct: the CSR rules under the Companies Act, 2013 explicitly exclude activities that benefit the company directly or only its own employees from qualifying as CSR. Statement 2 is incorrect because the law does specify a minimum spend, namely at least 2% of the company's average net profits of the preceding three financial years. Since only statement 1 is correct, option (a) is the answer.

Correct answer: (A) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

US Treasury securities are backed only by the 'full faith and credit' of the US Government, not by any hard/physical collateral (Statement-II is correct). Because there is no underlying hard asset to seize, if the USA defaults there is nothing bondholders can enforce their claim against and they cannot compel payment (Statement-I is correct). The nature of the debt described in Statement-II is precisely why the default consequence in Statement-I follows, so Statement-II explains Statement-I.

Correct answer: (D) 1, 2 and 4

The digital rupee (e-Rupee/CBDC) is legal tender issued by the RBI as sovereign currency in line with its monetary policy, so statement 1 is correct. Being a central bank money, it is recorded as a liability on the RBI's balance sheet, making statement 2 correct, and it is designed to be freely convertible at par with cash and commercial bank deposits, so statement 4 is correct. Statement 3 is wrong because a CBDC, like any fiat currency, is not inflation-indexed or 'insured against inflation'; hence the correct combination is 1, 2 and 4.

Correct answer: (A) 1 only

India is a member of the International Grains Council (IGC), an intergovernmental body that promotes cooperation in the grains trade, so statement 1 is correct. Statement 2 is wrong because IGC membership is not a prerequisite for exporting or importing rice or wheat; trade in these commodities is governed by national policy and WTO rules, not by IGC membership. Hence only statement 1 is correct.

Correct answer: (D) Statement-I is incorrect but Statement-II is correct

Statement-I is incorrect but Statement-II is correct. For InvITs, the treatment is the reverse of what Statement-I claims: interest and dividend income distributed to unitholders is generally taxable in their hands (with specific provisions), so saying interest is exempt is wrong. Statement-II is correct: InvITs are recognised as borrowers under the SARFAESI Act, 2002, which was amended to include them, aiding infrastructure financing.

Correct answer: (A) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

Both statements are correct and Statement-II correctly explains Statement-I. After the pandemic, central banks worldwide (US Fed, ECB, RBI, etc.) raised interest rates to tame surging inflation. They did so precisely because central banks assume monetary policy tools like rate hikes can counteract rising consumer prices by curbing demand, so Statement-II explains the action in Statement-I.

Correct answer: (A) Conducting 'Open Market Operations'

Conducting Open Market Operations is the sterilization activity. Sterilization is when the RBI neutralises the effect of foreign-exchange inflows on domestic money supply, for example by selling government securities (OMO) to absorb the rupee liquidity created when it buys foreign currency. The other options (payment-system oversight, government debt management, NBFC regulation) are unrelated to sterilization.

Correct answer: (B) Only two

Only two are capital markets. Capital markets deal in long-term instruments: the Government Bond Market and the Stock Market qualify. The Call Money Market (very short-term interbank lending) and the Treasury Bill Market (instruments of up to one year) are money markets dealing in short-term funds, so they are excluded.

Correct answer: (B) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations

Option (b) best describes 'Small Farmer Large Field'. Under this model many marginal/small farmers in an area voluntarily organise into groups and synchronise and harmonise selected agricultural operations (sowing, input use, harvesting) to gain economies of scale, while retaining ownership of their land. It is not resettlement, contract farming, or corporate takeover of land as in the other options.

Correct answer: (C) All three

All three statements are correct. The Government of India does provide a Minimum Support Price for niger (Guizotia abyssinica) seed, one of the notified oilseeds. Niger is grown as a Kharif crop, largely by tribal communities in states like Odisha, Madhya Pradesh and Chhattisgarh, and niger seed oil is used by some tribal people for cooking as well as for lighting.

Correct answer: (C) Only three

The answer is 'Only three'. Intangible assets are non-physical value-creators: brand recognition, intellectual property (patents, trademarks, copyrights) and a mailing list of clients (customer data) are all intangible. Inventory, however, is a physical, tangible current asset made of actual goods, so it is not counted. Hence three of the four investments are intangible.

Correct answer: (B) Only three

The answer is 'Only three'. The Fifteenth Finance Commission used six criteria for horizontal devolution: Population (15%), Area (15%), Income Distance (45%), and additionally Demographic Performance (12.5%), Forest and Ecology (10%) and Tax and Fiscal Efforts (2.5%). Excluding population, area and income distance which the question sets aside, the remaining three from the list are Demographic performance, Forest and ecology, and Tax and fiscal efforts. 'Governance reforms' and 'Stable government' were never devolution criteria.

Correct answer: (C) Only three

The answer is 'Only three'. The UNOPS S3i (Sustainable Investments in Infrastructure and Innovation) initiative channels investment into three priority areas: affordable and sustainable housing, renewable energy, and health infrastructure. Mass rapid transport is not among its focus sectors, so only three of the four listed are correct.

Correct answer: (D) None

None of the statements holds. Many coastal thermal power plants use seawater for cooling, several plants are located in water-stressed districts, and a large share of India's thermal generation is privately owned (e.g., Adani, Tata, JSW). Since all three sweeping 'None of them' claims are false, the answer is that no statement is correct.

Correct answer: (B) 2 only

Statement 1 is false: the investment thresholds it gives do not match the MSMED framework (and the definition was revised in 2020 to include turnover-based criteria, with medium enterprises now up to Rs 50 crore investment and Rs 250 crore turnover). Statement 2 is correct: all bank loans to Micro, Small and Medium Enterprises qualify as priority-sector lending under RBI norms. So only statement 2 is correct.

Correct answer: (C) Both 1 and 2

Both statements are correct. A Central Bank Digital Currency allows direct digital settlement between parties without routing through the US dollar or the SWIFT messaging network, which is a key strategic attraction of CBDCs. Being programmable, a CBDC can also carry embedded conditions, such as a validity window or a restriction on where it may be spent. Hence both are true.

Correct answer: (D) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

In finance, beta is a numeric measure of a stock's systematic risk, quantifying how much the stock's price tends to move relative to movements in the overall market. A beta of 1 moves with the market, above 1 is more volatile, and below 1 is less volatile. Thus option (d) is correct.

Correct answer: (B) Only two

Statement 1 is false: the SHG-Bank Linkage Programme was pioneered by NABARD (launched in 1992), not the State Bank of India. Statement 2 is correct: SHGs work on joint liability, where all members are collectively responsible for a loan taken by any member. Statement 3 is correct: Regional Rural Banks and scheduled commercial banks (along with cooperative banks) finance SHGs. Two statements are correct.

Correct answer: (C) Statement-I is correct but Statement-II is incorrect

Statement-I is correct but Statement-II is incorrect. Switzerland is indeed one of the world's leading gold exporters and refiners by value, as it hosts several major gold refineries and re-exports large volumes, so Statement-I is true. Statement-II is false because Switzerland does not hold the second largest official gold reserves; the United States has the largest, followed by Germany, with Switzerland ranking lower (around 7th-8th).

Correct answer: (D) Statement-I is incorrect but Statement-II is correct

Statement-I is incorrect but Statement-II is correct. India's share of global merchandise (goods) exports is only about 1.8 percent, not 3.2 percent (3.2 percent is closer to India's share in services exports), so Statement-I is false. Statement-II is true because the Production-Linked Incentive (PLI) scheme has genuinely been availed by many domestic and some foreign firms in sectors like electronics, pharmaceuticals and mobile manufacturing.

Correct answer: (A) Only one

Only one statement is correct. The Stability and Growth Pact (SGP) of the European Union is a rules-based framework that limits members' budget deficits to 3 percent of GDP and public debt to 60 percent of GDP to ensure fiscal discipline in the Eurozone, so statement 1 is correct. Statements 2 and 3 are false; the SGP has nothing to do with sharing infrastructure facilities or sharing technologies.