Explanation : 

Statement I: “Capital receipts create a liability or cause a reduction in the assets of the Government.”

This statement is correct. Capital receipts are those receipts of the government which either create liabilities (e.g., borrowings) or reduce assets (e.g., disinvestment).

Statement II: “Borrowings and disinvestment are capital receipts.”

This statement is correct. Borrowings create liabilities, and disinvestment reduces government assets. Both are classified as capital receipts.

Statement III: “Interest received on loans creates a liability of the Government.”

This statement is incorrect. Interest received on loans is a revenue receipt, not a capital receipt. Revenue receipts neither create liabilities nor reduce assets. Instead, they are regular income for the government.

Thus, statements I and II are correct, while statement III is incorrect. Hence, the correct answer is option (a).

Explanation :

Circular Economy (CE):

A circular economy is an economic system designed to be restorative and regenerative by intention. Its core principles are:

• Design out waste and pollution.
• Keep products and materials in use at their highest utility and value.
• Regenerate natural systems rather than simply extracting resources.

From this definition we derive two fundamental outcomes:
• A significant reduction in the input of virgin raw materials, since products and materials are reused, remanufactured, or recycled (Principle 2).
• A drastic minimization of waste and by-products in production processes through improved design, closed-loop material flows, and resource-efficient manufacturing (Principles 1 & 2).

Examination of the statements:

Statement II: “Circular economy reduces the use of raw materials as inputs.”
– Directly follows from Principle 2: Keeping materials in use replaces the need for virgin resource extraction.
– Therefore, Statement II is correct.

Statement III: “Circular economy reduces wastage in the production process.”
– Follows from Principles 1 and 2: Designing out waste and implementing closed-loop systems curtails production losses and by-products.
– Therefore, Statement III is correct.

Statement I: “Circular economy reduces the emissions of greenhouse gases.”
– By avoiding energy-intensive extraction, refining, manufacturing, and disposal of virgin materials and waste, a circular economy lowers CO₂ and other GHG emissions across the life cycle.

Do Statements II and III explain Statement I?
• Reduced virgin‐material inputs (II) avoid the large energy consumption and associated emissions of mining and processing.
• Reduced production waste (III) eliminates waste-incineration or landfill methane emissions and improves energy efficiency per unit of output.

Hence both II and III are not only correct but also jointly explain how a circular economy achieves the GHG-emission reductions asserted in Statement I.

Conclusion: Option (a) is the correct choice.

Explanation : 

Statement I: India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom.

This statement is correct. Indian exchanges accounted for approximately 78% of the 108 billion equity options contracts traded worldwide in 2023. In the first quarter of 2024, over 84% of all equity options traded globally were on Indian exchanges. India has rapidly transformed from a minor participant to the world’s largest equity derivatives market in just five years.

Statement II: India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point of time.

This statement is correct. India’s stock market overtook Hong Kong’s in January 2024, becoming the fourth-largest equity market globally by market capitalization. The combined value of shares listed on Indian exchanges reached $4.33 trillion, surpassing Hong Kong’s $4.29 trillion.

Statement III: There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard.

This statement is incorrect. The Securities and Exchange Board of India (SEBI) is the regulatory authority for financial markets in India. SEBI has actively warned investors about the risks of options trading, highlighting that a significant majority of investors lose money in this segment. SEBI has also introduced new regulations to address these risks, such as increased margins and stricter position limits for options trading. Regarding unregistered financial advisors, SEBI prohibits entities from associating with them and has directed registered entities to terminate contracts with such advisors. SEBI also takes action against unregistered advisors, including issuing warnings and directing refunds for illegal advisory services.

Conclusion: Only statements I and II are correct. Statement III is incorrect.

Explanation : 

1. Statement I asserts that bondholders bear lower risk than stockholders in respect of returns. – This is true because bondholders receive fixed interest payments and have a contractual claim on the company’s assets, whereas stockholders’ dividends are variable and depend on the company’s profitability.

2. Statement II states that bondholders are lenders to a company, whereas stockholders are its owners. – This is correct. By purchasing bonds, an investor extends credit to the issuer. In contrast, purchasing shares confers an ownership stake in the firm.

3. Statement III claims that for repayment purposes, bondholders are prioritized over stockholders. – This is also correct. In the event of liquidation or bankruptcy, secured and unsecured creditors (including bondholders) are paid before any residual distribution to equity holders.

Since both Statement II and Statement III are true and together explain why bondholders face relatively lower risk (as stated in Statement I), option (a) is the correct choice.

Explanation : 

Statement I: India has joined the Minerals Security Partnership as a member.

This statement is correct. India officially joined the US-led Minerals Security Partnership (MSP) in June 2023. The MSP is a coalition of countries that aims to secure and diversify global supply chains for critical minerals.

Statement II: India is a resource-rich country in all the 30 critical minerals that it has identified.

This statement is incorrect. Although India has identified 30 critical minerals that are essential for its economic development and national security, it is not resource-rich in all of them. India relies heavily on imports for many of these minerals, such as lithium, cobalt, and rare earth elements. For example, India imports 100% of its germanium requirements.

Statement III: The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.

This statement is correct. The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, was passed by the Indian Parliament in 2023. This amendment empowers the Central Government to exclusively auction mining leases and composite licenses for specified critical and strategic minerals, including those previously classified as atomic minerals.

Conclusion: Statements I and III are correct. Statement II is incorrect.

Explanation : 

Based on Income Tax Bill 2025

Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.

This statement is incorrect. Under the Income-tax Act, 1961, “agricultural income” is exempt from tax under Section 10(1). However, the Act defines agricultural income as income derived from land used for agricultural purposes, such as rent or revenue from such land, and income from agricultural operations like cultivation and processing of agricultural produce. Allied agricultural activities such as poultry farming, wool rearing, dairy farming, and bee-keeping are generally not considered agricultural income because they do not involve the direct cultivation of land. As a result, income from these activities is usually taxable as business income. The central government can levy tax on income from such allied activities. Additionally, the Income Tax Bill 2025 has clarified that income from dairy, poultry, and fisheries is fully taxable and not treated as agricultural income.

Statement II: In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.

This statement is correct. According to Section 45 of the Income-tax Act, 1961, rural agricultural land in India is not considered a capital asset. Therefore, any gains arising from the sale of such land are not taxable under the head ‘Capital Gains’. The Act specifies criteria for what qualifies as rural agricultural land, based on its location, the population of the nearest municipality or cantonment board, and the aerial distance from its limits.

Conclusion:
Statement I is not correct, but Statement II is correct.

Explanation : 

The full form of BRSR is Businеss Rеsponsibility and Sustainability Rеporting, which is a rеporting framеwork notified by thе SEBI for listеd companiеs in Indiа.

Business Responsibility and Sustainability Reporting (BRSR) is an integrated reporting framework. Its purpose is to increase the level of reporting on environmental, social, and governance (ESG) performance. BRSR requires enterprises to report ESG performance indicators to ensure that they practise responsible business and achieve sustainable development.

Objectives of BRSR Implementation

Thе primary objеctivеs of BRSR implementation are:

1. To encouragе companiеs to adopt sustainablе businеss practicеs and intеgratе ESG considеrations into thеir opеrations. 
2. To encourage the comparability and quality of non-financial information disclosed in the reports. 
3. To ensure that Indian companiеs complу with the internationаl standards and frаmeworks of sustainаbility reporting. 
4. To improve stakeholder engagement and establish trust by ensuring that comprehensive ESG disclosures arе made. 

Explanation : 

I. Directorate of Enforcement (ED)

• Function: “Enforcement of the Fugitive Economic Offenders Act, 2018”. This is correct. The ED is indeed responsible for enforcing this Act, along with the Prevention of Money Laundering Act (PMLA), Foreign Exchange Management Act (FEMA), etc.

• Works under: “Internal Security Division-I, Ministry of Home Affairs”. This is incorrect. The Directorate of Enforcement functions under the Department of Revenue, Ministry of Finance.

II. Directorate of Revenue Intelligence (DRI)

• Function: “Enforces the Provisions of the Customs Act, 1962”. This is correct. The DRI is the primary intelligence agency responsible for combating smuggling and enforcing customs laws in India.

• Works under: “Department of Revenue, Ministry of Finance”. This is correct. The DRI is an arm of the Central Board of Indirect Taxes and Customs (CBIC), which falls under the Department of Revenue, Ministry of Finance.

III. Directorate General of Systems and Data Management

• Function: “Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders”. This is correct. This Directorate General is responsible for managing IT systems, data analytics, and providing technological support for tax administration, including identifying tax evasion and assisting in policy formulation.

• Works under: “Department of Revenue, Ministry of Finance”. This is correct. This Directorate General is part of the Central Board of Indirect Taxes and Customs (CBIC), which operates under the Department of Revenue, Ministry of Finance.

Explanation : 

The Reserve Bank of India (RBI) generates income primarily through the following activities:

I. Buying and selling Government bonds: The RBI conducts open market operations (OMOs), which involve buying and selling government securities. Through these transactions, RBI earns income in the form of interest and capital gains.

II. Buying and selling foreign currency: RBI actively manages India’s foreign exchange reserves. It earns income through trading foreign currencies, interest earned on foreign securities, and gains from currency valuation changes.

V. Printing and distributing currency notes: The RBI has the sole authority to issue currency notes in India. The difference between the cost of printing currency notes and their face value (known as seigniorage) constitutes a significant source of income for the RBI.

Activities not considered as RBI’s sources of income:

• III. Pension fund management: RBI does not manage pension funds as a source of income.
• IV. Lending to private companies: RBI generally does not lend directly to private companies for profit-making purposes. Its lending activities are primarily directed towards banks and financial institutions for monetary policy purposes rather than commercial profit.

Thus, the correct answer is option (d): I, II and V.

Explanation : 

Alternative Investment Funds (AIFs) refer to investment vehicles that differ from traditional investment avenues such as stocks, bonds, and cash. Typically, AIFs include hedge funds, venture capital funds, private equity funds, real estate funds, infrastructure funds, and other similar investment vehicles.

I. Bonds: Bonds are traditional fixed-income securities and are not considered alternative investments.

II. Hedge Funds: Hedge funds are pooled investment vehicles employing diverse strategies to achieve returns. They are considered alternative investments.

III. Stocks: Stocks (equities) represent ownership in publicly traded companies and are traditional investments, not alternative investments.

IV. Venture Capital: Venture capital funds invest in early-stage companies and startups. They are classified as alternative investments.

Thus, among the given options, only Hedge Funds (II) and Venture Capital (IV) are treated as Alternative Investment Funds.

Hence, the correct answer is option (b): Only two.