Explanation : 

c. Statement-I is correct Statement-II is incorrect

Energy Sources and Uranium Enrichment

Statement-I : India does have uranium deposits, but it primarily depends on coal for most of its electricity production. Coal is abundant and relatively cheaper in India, making it the dominant source of energy for electricity generation.

Statement-II : Uranium enriched to the extent of at least 60% is not required for the production of electricity. In fact, commercial nuclear power plants typically use uranium enriched to about 3-5% for fuel. Uranium with a higher enrichment level, such as 60%, is not necessary for electricity production and is generally used for other purposes, such as nuclear weapons or research reactors.

Explanation : 

b. Only three

Criteria for Horizontal Tax Devolution

The Fifteenth Finance Commission used several criteria other than population, area, and income distance for horizontal tax devolution. These criteria are:

1. Demographic Performance

This criterion rewards states with lower fertility rates with a higher share of tax revenue, considering their efforts to control population growth.

2. Forest and Ecology

States with a larger forest cover receive a higher share of tax revenue to compensate for the environmental services they provide.

3. Tax and Fiscal Efforts

Efficiency in tax collection and efforts to improve revenue-generating capacity are considered in this criterion. States with better tax collection performance receive a higher share of tax revenue.

The other two factors, governance reforms and stable government, were not used as criteria by the Fifteenth Finance Commission for horizontal tax devolution.

Press Information Bureau (pib.gov.in)

Explanation : 

c. Only three

Intangible Investments

1. Brand recognition is an intangible investment because it represents the value of a company’s reputation, name, and image in the market, which cannot be physically touched or seen.

2. Inventory is not an intangible investment, as it consists of physical goods and materials that a company holds for sale or production.

3. Intellectual property, such as patents, copyrights, and trademarks, is an intangible investment because it represents the legal rights and protections granted to a company’s creations, which cannot be physically touched or seen.

4. Mailing list of clients is an intangible investment because it represents the value of a company’s relationship with its customers, which cannot be physically touched or seen.

Explanation : 

c. All three

1. The Government of India provides Minimum Support Price (MSP) for various agricultural commodities, including niger seeds, to ensure a guaranteed price for farmers and to protect them from price fluctuations in the market.

2. Niger is cultivated as a Kharif crop, which is sown during the monsoon season (June to September) in India.

3. Some tribal people in India use niger seed oil for cooking as it is rich in nutrients and has a unique flavor. The oil is also used in traditional medicine and for making soaps and paints.

Explanation : 

b. Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations

The concept of “Small Farmer Large Field” refers to a situation where many small or marginal farmers in a particular area come together and organize themselves into groups to better manage their agricultural operations. By working together, these farmers can synchronize and harmonize their farming activities, which can lead to increased efficiency, reduced costs, and improved productivity. This approach allows small farmers to take advantage of economies of scale and can help them compete more effectively in the market.

Explanation : 

Correct Answer – a. Conducting ‘Open Market Operations’

Sterilization and Open Market Operations

Sterilization refers to the process of managing the impact of foreign currency inflows on the domestic money supply. The Reserve Bank of India (RBI) achieves this through conducting ‘Open Market Operations’ (OMOs). OMOs involve the buying and selling of government securities in the open market to adjust the money supply in the economy. When the RBI wants to reduce the money supply, it sells government securities, and when it wants to increase the money supply, it buys government securities. This helps in maintaining price stability and controlling inflation.

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.