30. The agricultural-support categories called amber box, blue box and green box are used in which negotiations?
[UPSC CSE Prelims, GS Paper I — 2016]
(A) WTO affairs
(B) SAARC affairs
(C) UN climate negotiations
(D) India–EU free-trade talks
Answer: (A) WTO affairs
Explanation: The WTO Agreement on Agriculture groups domestic support measures by trade-distorting effects. Amber box support is generally subject to limits, blue box measures are tied to production-limiting conditions, and green box measures are minimally trade-distorting.
29. For the International Monetary and Financial Committee:
(1) it advises IMF work on global economic concerns;
(2) the World Bank participates as an observer.
Which is correct?
[UPSC CSE Prelims, GS Paper I — 2016]
(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2
Answer: (C) Both 1 and 2
Explanation: The IMFC is a ministerial-level body providing strategic advice to the IMF on the international monetary system. World Bank participation as an observer helps coordination between global macroeconomic surveillance and development-finance institutions.
28. The Agreement on Agriculture, Sanitary and Phytosanitary Measures and Peace Clause are associated with which organisation?
[UPSC CSE Prelims, GS Paper I — 2015]
(A) Food and Agriculture Organization
(B) UN Framework Convention on Climate Change
(C) World Trade Organization
(D) UN Environment Programme
Answer: (C) World Trade Organization
Explanation: These agreements and provisions form part of international trade governance under the WTO. Agricultural trade rules address market access, domestic support and export competition, while sanitary and phytosanitary measures concern protections for human, animal and plant health.
27. Among Kerala, West Bengal, Uttar Pradesh and Jharkhand, which had the highest population density in Census 2011?
[WBCS Executive Preliminary Examination — 2015]
(A) Kerala
(B) West Bengal
(C) Uttar Pradesh
(D) Jharkhand
Answer: (B) West Bengal
Explanation: West Bengal recorded a greater population density than the other listed states in Census 2011. Bihar, not offered among the choices, recorded the highest density among Indian states overall. Reading the qualifying phrase “among the following” is essential.
26. What is meant by convertibility of the Indian rupee?
[UPSC CSE Prelims, GS Paper I — 2015]
(A) Converting rupee notes into gold
(B) A rupee value fixed only by the market
(C) Exchange of rupees for foreign currencies and back
(D) Creation of an international money market in India
Answer: (C) Exchange of rupees for foreign currencies and back
Explanation: Currency convertibility concerns the freedom to exchange domestic and foreign currencies for permitted transactions. It differs from choosing a floating exchange-rate regime. India adopted current-account convertibility but maintained controls on several capital-account transactions.
25. The problem of international liquidity arises primarily from insufficient availability of what?
[UPSC CSE Prelims, GS Paper I — 2015]
(A) Goods and services
(B) Gold and silver only
(C) Dollars and other hard currencies
(D) Exportable goods
Answer: (C) Dollars and other hard currencies
Explanation: International liquidity refers to assets and currencies usable for settling international obligations. A shortage of widely accepted reserve currencies can impede import payments and debt servicing. Gold and IMF Special Drawing Rights can supplement liquidity but are not its sole modern basis.
24. Which institution publishes the World Economic Outlook report?
[UPSC CSE Prelims, GS Paper I — 2014]
(A) International Monetary Fund
(B) United Nations Development Programme
(C) World Economic Forum
(D) World Bank
Answer: (A) International Monetary Fund
Explanation: The IMF publishes its World Economic Outlook to assess world growth, inflation, risks and economic prospects. The World Bank publishes separate global-economic analyses, and the World Economic Forum focuses on collaboration and competitiveness rather than this IMF flagship report.
23. Which belong to the current account of the balance of payments:
(1) balance of trade,
(2) foreign assets,
(3) balance of invisibles,
(4) Special Drawing Rights?
[UPSC CSE Prelims, GS Paper I — 2014]
(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 4 only
Answer: (C) 1 and 3 only
Explanation: The current account covers goods, services, primary income and transfers. Merchandise balance and invisibles are therefore included. Cross-border ownership of foreign assets belongs to the financial account, while SDRs are international reserve assets.
22. Which of these enter India’s capital account:
(1) foreign loans,
(2) foreign direct investment,
(3) private remittances,
(4) portfolio investment?
[UPSC CSE Prelims, GS Paper I — 2013]
(A) 1, 2 and 3 only
(B) 1, 2 and 4 only
(C) 2, 3 and 4 only
(D) 1, 3 and 4 only
Answer: (B) 1, 2 and 4 only
Explanation: Foreign loans, direct investment and portfolio investment are financial-account transactions involving claims on assets or liabilities. Remittances received from individuals abroad normally belong to the current account as secondary income, not to capital or financial inflows.
21. Which set correctly identifies components of India’s official foreign-exchange reserves?
[UPSC CSE Prelims, GS Paper I — 2013]
(A) Foreign-currency assets, SDRs and foreign loans
(B) Foreign-currency assets, RBI gold and SDRs
(C) Foreign-currency assets, World Bank loans and SDRs
(D) Foreign-currency assets, RBI gold and World Bank loans
Answer: (B) Foreign-currency assets, RBI gold and SDRs
Explanation: Official foreign-exchange reserves consist of foreign-currency assets, monetary gold, IMF Special Drawing Rights and reserve position in the IMF. Loans from external institutions create liabilities; they are not themselves reserve assets held by the central bank.
