Explanation : 

Correct Answer: a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.

Central Banks’ Post-Pandemic Strategy: Interest Rate Hikes as a Tool to Tackle Inflation

In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes to counteract the rising consumer prices and inflation. This is because Central Banks generally assume that they have the ability to control inflation and stabilize the economy through monetary policy means, such as adjusting interest rates.

When consumer prices are rising, Central Banks often increase interest rates to slow down inflation. Higher interest rates make borrowing more expensive, which in turn reduces consumer spending and business investment. This helps to cool down the economy and bring inflation back under control.

So, in this case, Statement-II is the correct explanation for Statement-I, as Central Banks’ belief in their ability to counteract rising consumer prices through monetary policy means is the reason behind their decision to carry out interest rate hikes in the post-pandemic period.

Explanation : 

Correct Answer – d

Statement 1 Source (Check Tax Part) – Infrastructure Investment Trusts (InvITs) – Structure, Types, Taxation (etmoney.com)

Statement 2 Source – Budget_2021_Implications_of_the_Finance_Bill_on_INVITS_AND_REITS_Cyril_Amarchand_Mangaldas.pdf (aprea.asia)

Explanation : 

d. None

1. East-West Corridor under the Golden Quadrilateral Project:

The East-West Corridor is a part of the National Highways Development Project (NHDP) of India, which aims to improve road connectivity across the country. The corridor connects Silchar in Assam to Porbandar in Gujarat, covering a total length of 3,300 km. It passes through several states, including Assam, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, West Bengal, Bihar, Jharkhand, Odisha, Chhattisgarh, and Gujarat. The project is aimed at improving transportation, trade, and economic development in these regions.

2. Trilateral Highway:

The Trilateral Highway, also known as the India-Myanmar-Thailand (IMT) Highway, is a 1,360 km-long road project that aims to connect Moreh in Manipur, India, with Mae Sot in Thailand, via Myanmar. The project is part of a larger plan to enhance regional connectivity and promote economic cooperation among the three countries. The highway is expected to boost trade, tourism, and people-to-people exchanges in the region. The project is currently under construction, and once completed, it will be a significant milestone in fostering regional integration and cooperation in South and Southeast Asia.

3. Bangladesh – China – India – Myanmar (BCIM) Economic Corridor:

The BCIM Economic Corridor is a proposed multi-modal connectivity project that aims to link Kolkata in West Bengal, India, with Kunming in Yunnan Province, China, via Bangladesh and Myanmar. The corridor is intended to facilitate trade, investment, and economic cooperation among the four countries. The proposed route covers a total distance of approximately 2,800 km and passes through key cities such as Dhaka (Bangladesh), Mandalay (Myanmar), and Kunming (China).

The BCIM Economic Corridor is one of the several economic corridors proposed under China’s Belt and Road Initiative (BRI), which seeks to enhance regional connectivity and promote economic development across Asia, Europe, and Africa. The corridor is expected to boost economic growth, create new employment opportunities, and improve infrastructure in the participating countries. However, the project’s progress has been slow due to various challenges, including political, economic, and security concerns among the involved countries.

Explanation : 

a. Cameroon

Congo Basin

Congo Basin is a vast area in Central Africa that spans across six countries: Cameroon, Central African Republic, Democratic Republic of the Congo, Republic of the Congo, Gabon, and Equatorial Guinea. It is the world’s second-largest river basin, covering an area of about 3.7 million square kilometers. The Congo Basin is home to the Congo River, which is the second-longest river in Africa, and it contains the world’s second-largest tropical rainforest. The basin plays a crucial role in regulating climate, supporting biodiversity, and providing resources for millions of people living in the region.

Explanation :

Correct Answer – C

Top Cobalt Producing Countries

The Democratic Republic of the Congo (DRC) is the world’s largest producer of cobalt, accounting for about three-fourths (approximately 75%) of the global supply. Cobalt is a crucial metal used in the manufacture of batteries for electric motor vehicles, as well as other electronic devices and aerospace applications. The DRC has vast mineral resources, including significant deposits of cobalt, which is primarily extracted as a byproduct of copper and nickel mining. The country’s vast cobalt reserves and its dominant position in the global cobalt market make it a critical player in the transition to electric vehicles and clean energy technologies.

Apart from the Democratic Republic of the Congo, other countries with significant cobalt production and reserves include:

1. Russia

Russia is one of the world’s leading cobalt producers, with the metal being primarily extracted as a byproduct of nickel mining operations. The Norilsk Nickel Company is a major player in the country’s cobalt production.

2. Australia

Australia has substantial cobalt reserves and production, with the metal being extracted mainly as a byproduct of copper and nickel mining. Key cobalt-producing regions in Australia include Western Australia, Queensland, and New South Wales.

3. Canada

Canada has considerable cobalt resources, primarily located in the province of Ontario. The metal is extracted as a byproduct of copper and nickel mining operations. The Canadian company First Cobalt is focused on developing cobalt projects in the country.

4. Cuba

Cobalt production in Cuba is primarily associated with the country’s nickel mining industry. The Moa region in eastern Cuba is particularly rich in cobalt and nickel resources.

5. Zambia

Zambia is another African country with significant cobalt production, which is mainly extracted as a byproduct of copper mining. The country’s Copperbelt region hosts large cobalt reserves.

Explanation : 

d. Titanium

Ilmenite and Rutile: Rich Sources of Titanium

Ilmenite and rutile are both rich sources of titanium. Ilmenite is an iron titanium oxide (FeTiO3), and rutile is a titanium dioxide mineral (TiO2). They are abundantly available in certain coastal tracts of India, particularly in the states of Tamil Nadu, Kerala, and Andhra Pradesh.

Titanium is a strong, lightweight, and corrosion-resistant metal, making it ideal for use in various industries, such as aerospace, automotive, and construction. It is also used in the production of pigments, coatings, and other applications.

Explanation : 

d. Rann of Kutch

Rann of Kutch

is an exemplary illustration of the impact of repeated falls in sea level, leading to the formation of the present-day extensive marshland. This unique geographic feature is prominently situated in the Thar Desert, spanning across the Kutch District of Gujarat, India, and extending into the Sindh province of Pakistan.

Geographical Composition

The Rann of Kutch is broadly segmented into two principal areas: the Great Rann of Kutch and the Little Rann of Kutch. This division marks not just a geographical distinction but also highlights the diverse characteristics of each section.
Throughout history, the region has witnessed multiple fluctuations in sea level. These significant changes have been instrumental in shaping the extensive marshlands that characterize the area today.

Unique Ecosystem

These marshlands boast a unique ecosystem, providing a habitat for a variety of species. The flora and fauna here have remarkably adapted to the saline and arid conditions prevalent in the region, making it a subject of interest for both ecological and geographical studies.

Explanation : 

b. Only two

Understanding Different Tree Types

• Jackfruit (Artocarpus heterophyllus): Jackfruit is an evergreen tree, meaning it retains its leaves throughout the year and does not shed them seasonally. Therefore, it is not a deciduous tree.
• Mahua (Madhuca indica): Mahua is a deciduous tree, meaning it sheds its leaves seasonally, usually during the dry season or winter months.
• Teak (Tectona grandis): Teak is also a deciduous tree, shedding its leaves seasonally.

So, out of the three trees mentioned, two of them (Mahua and Teak) are deciduous trees.

Explanation : 

b. Only two pairs

Kamarajar Port – First Major Port in India Registered as a Company

• Kamarajar Port, formerly known as Ennore Port, is located in Tamil Nadu and is the first major port in India that was registered as a company.

Mundra Port – Largest Privately Owned Port in India

• Mundra Port, located in Gujarat, is the largest privately owned port in India. It is owned by the Adani Group.

Visakhapatnam Port – Not the Largest Container Port in India

• This pair is incorrectly matched. Visakhapatnam Port, located in Andhra Pradesh, is not the largest container port in India. The largest container port in India is Jawaharlal Nehru Port, also known as Nhava Sheva, which is located in Maharashtra.

Explanation : 

c. Both 1 and 2

G-20: An Overview

Established in 1999, the G-20 (Group of Twenty) serves as a key international platform for Finance Ministers and Central Bank Governors. It focuses on critical issues surrounding global economic growth, international trade, and the regulation of financial markets. Over time, the G-20 has expanded to include heads of government and other high-ranking officials from its member countries.

India’s Priorities in the G-20

India has placed a significant emphasis on digital public infrastructure as a cornerstone of its agenda within the G-20 framework. This involves initiatives aimed at:

• Promoting digital financial inclusion to ensure broader access to financial services.
• Fostering innovation in digital technology to drive economic growth and development.
• Ensuring a safe and secure digital environment for all users.