1. Consider the following statements in context with the Asian Development Bank:
- Its shareholders are only Asian Countries
- It offers both hard loans and soft loans
- Trade Finance Programme is one of the programmes of Asian Development Bank
Which of the above statements is / are correct?
[A] Only 1 and 2
[B] Only 1 and 3
[C] Only 2 and 3
[D] 1, 2 and 3
Show Answer
Correct Answer: C [Only 2 and 3]
Notes:
Statement 1 is incorrect because the Asian Development Bank (ADB) includes shareholders from non-Asian countries like the USA and European nations. Statement 2 is correct as ADB provides both hard (market-based) and soft (concessional) loans. Statement 3 is also correct since the Trade Finance Program is one of ADB’s prominent programmes supporting trade in Asia.
2. Consider the following organizations:
- Non-aligned Movement
- Southeast Asia Treaty Organization
- Colombo Plan
With reference to India’s international affiliations, which of the above has India been a member of?
[A] 1 and 3 only
[B] 1, 2 and 3
[C] 1 only
[D] 1 and 2 only
Show Answer
Correct Answer: A [1 and 3 only]
Notes:
India has been a founding member of the Non-aligned Movement and is a member of the Colombo Plan. However, India has never been a member of the Southeast Asia Treaty Organization (SEATO), which was a United States-led defense alliance from 1954 to 1977.
3. With reference to India’s borrowing from the Asian Development Bank (ADB), consider the following statements:
- India borrows from the ADB primarily through the Ordinary Capital Resources (OCR) route.
- India is eligible for the Asian Development Fund (ADF) concessional loans but has consciously opted out.
- India opted out of ADF mainly to allow Least Developed Countries (LDCs) to benefit from this facility.
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 1 & 3
[C] Only 2 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:
India borrows from ADB through the OCR route since 1986 and is eligible for ADF concessional loans. However, India has consciously opted out of the ADF, allowing resources to be directed towards LDCs. This reflects India’s status as a rising economy and a contributor to international development, not requiring the concessional ADF financing.
4. Which of the following countries are members of the Commonwealth of Nations despite not being former British colonies?
- Rwanda
- Mozambique
- Namibia
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1
[D] 1, 2 & 3
Show Answer
Correct Answer: A [Only 1 & 2]
Notes:
Rwanda and Mozambique joined the Commonwealth of Nations without being former British colonies; Rwanda was formerly under German and Belgian rule, Mozambique under Portuguese rule. Namibia, by contrast, was a British Trust Territory after World War I and thus has historic links with Britain. Therefore, only Rwanda and Mozambique are exceptions.
5. Which of the following statements regarding the International Thermonuclear Experimental Reactor (ITER) project are correct?
- It is being built in Japan.
- It is based on generating electricity with the help of nuclear fusion.
- India is one of its participating members.
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: B [Only 2 & 3]
Notes:
The ITER project is located in southern France, not Japan. It aims to produce electricity through nuclear fusion technology. India is among its execution members along with the EU, Japan, China, Russia, South Korea, and the USA.
6. Consider the following diseases in the context of India's health achievements as recognized by the World Health Organization (WHO):
- Maternal and neonatal tetanus
- YAWS
- Polio
- Small Pox
Which of the above diseases has/have been officially declared eliminated from India by the WHO?
[A] 1, 2, 3 & 4
[B] 2, 3 & 4 Only
[C] 3 & 4 Only
[D] 1, 3 & 4 Only
Show Answer
Correct Answer: A [1, 2, 3 & 4]
Notes:
India achieved official WHO elimination status for maternal and neonatal tetanus in 2015, for polio in 2014, and for YAWS also in 2016. Smallpox was eradicated globally, with India being declared free in 1977. Thus, all four diseases listed have been declared eliminated from India by the WHO.
7. At the International Monetary Fund (IMF), which of the following functions are performed by the Quota System?
- It determines the amount of financial resources each member is required to commit to the IMF.
- It determines how much a country can borrow from the IMF.
- It determines a country's voting power at the IMF.
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:
The IMF quota system determines the financial commitment each member makes to the IMF, a member's access to IMF financing, and its voting power. Quotas are based on a country’s relative position in the world economy and are periodically reviewed to reflect changes. Thus, all three statements regarding the functions of the quota system are correct.
8. Consider the following statements regarding Special Drawing Rights (SDRs):
- SDRs are interest bearing reserve assets.
- SDRs cannot be used directly to purchase goods and services.
- An increase in a country's holdings of SDRs increases its voting power in the IMF.
Which of the above statements is / are correct?
[A] Only 1 and 2
[B] 1, 2 and 3
[C] Only 1 and 3
[D] Only 2 and 3
Show Answer
Correct Answer: B [1, 2 and 3]
Notes:
Statement 1 is correct as SDRs are interest bearing reserve assets allocated by the IMF. Statement 2 is correct; SDRs are not a currency and cannot be used directly for purchases, but can be exchanged among governments. Statement 3 is also correct: increases in SDR allocations may affect a member's quota and voting power in the IMF.
9. Consider the following statements regarding the Base Erosion and Profit Shifting (BEPS) project:
- The BEPS project is headed by the International Finance Corporation (IFC).
- The primary aim of BEPS is to tackle tax avoidance by multinational corporations.
Which of the above statements is/are correct?
[A] Only 1
[B] Both 1 and 2
[C] Only 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [Only 2]
Notes:
The BEPS project is coordinated by the Organisation for Economic Co-operation and Development (OECD), not the International Finance Corporation (IFC), making statement 1 incorrect. Statement 2 is correct as BEPS primarily seeks to reduce tax avoidance by multinational corporations through changing international tax rules to prevent shifting of profits to low-tax jurisdictions.
10. Consider the following statements about the World Trade Organization (WTO):
- The topmost decision-making body of WTO is the Ministerial Conference.
- The Ministerial Conference meets at least once in every two years.
- The headquarters of WTO are located at Geneva, Switzerland.
Which of the above statements is/are correct?
[A] Only 1 and 2
[B] 1, 2 and 3
[C] Only 3
[D] Only 2 and 3
Show Answer
Correct Answer: B [1, 2 and 3]
Notes:
All given statements are correct: The WTO's top decision-making body is the Ministerial Conference, which must meet at least once every two years. Additionally, the headquarters of the WTO are in Geneva, Switzerland, as recognized by all member countries and official WTO documentation.
