UPSC Essentials | Daily subject-wise quiz : Economy MCQs on New Development Bank, report ‘Trade Watch’ and more (Week 87)

1. The top three positions in the Index are held by all Asian countries.

2. India has ranked 63rd out of 120 countries.

3. It is released by the International Atomic Energy Agency (IAEA).

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The global energy transition has been slowing down, much slower than is necessary in the past three years, with a 6% increase in global average ETI scores since 2015, owing to the increasing global uncertainty.

— However, global energy systems are beginning to transform, driven by more clean energy investments, strengthened regulatory frameworks, a greater urgency to address climate crises, and an acceleration of the transition to a low-carbon economy.

— The World Economic Forum’s Energy Transition Index (ETI) achieved its highest global average ratings in 2024, with a slight 0.2% gain in system performance and a substantial 2% increase in transition readiness. Hence, statement 3 is not correct.

— The World Economic Forum released the Energy Transition Index (ETI) 2024 earlier this year, ranking 120 nations according to their progress towards a sustainable, cheap, and secure energy future.

— Northern Europe’s advanced economies, led by Sweden, Denmark, and Finland, have achieved great progress towards sustainable energy systems, with high scores in renewable energy deployment, energy efficiency, and environmental sustainability. Hence, statement 1 is not correct.

— India scored 63rd out of 120 nations in the 2024 Global Energy Transition Index, up from 67th in 2023. Hence, statement 2 is correct.

— India has made progress in energy equity, security, and sustainability, particularly in the renewable energy industry, where renewables and biomass account for 42% of total power generation capacity.

— India is leading the way in developing outcomes that can be reproduced elsewhere, while also making progress in energy equity, security, and sustainability.

Therefore, option (a) is the correct answer.

QUESTION 2

The report ‘Trade Watch’ has been released by:

(a) Directorate General of Foreign Trade (DGFT)

(b) Department of Commerce

(c) NITI Aayog

(d) India Trade Promotion Organisation

Explanation

— Even though a new NITI Aayog report, the ‘Trade Watch’, released on Wednesday, states that India has had “limited success so far” in capturing the ‘China Plus One’ strategy adopted by multinational corporations looking to de-risk their supply chains, NITI Aayog CEO BVR Subrahmanyam has suggested that trade policies under US President-elect Donald Trump could result in a potential economic boom for India, driven by significant trade diversion in global trade.

— The United States and China have begun a new trade war, putting reciprocal trade restrictions on each other. After the United States imposed export limits on computer chip-making equipment, software, and high-bandwidth memory chips, China responded on Tuesday by prohibiting exports of gallium, germanium, antimony, and other critical high-tech components to the United States.

— The renewed trade battle is noteworthy because “connecting economies” viewed as neutral and not allied with either the US or China, such as India, have benefited from the two countries’ geopolitical conflicts since Trump’s first term.

Therefore, option (c) is the correct answer.

QUESTION 3

With reference to the New Development Bank (NDB), consider the following statements:

1. It was established to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries.

2. Membership of the Bank is limited to the BRICS members.

3. India’s contribution to the BRICS New Development Bank (NDB) stands at $2 billion from 2015-16 to 2021-22.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 only

(c) 2 and 3 only

(d) 1 and 3 only

Explanation

— India has contributed nearly $2 billion to the BRICS New Development Bank (NDB), and 20 externally aided projects, totalling $4,867 million in loans, are currently underway in the country, according to Union Minister of State for Finance Pankaj Chaudhary.

— India’s contribution to the BRICS New Development Bank (NDB) is $2 billion, paid in seven installments from fiscal year 2015-16 to 2021-22. In India, 20 externally financed projects totalling $4.867 million in loan funding from the NDB are under underway. Hence, statement 3 is correct.

— The New Development Bank (NDB) is a multilateral development bank founded by Brazil, Russia, India, China, and South Africa (BRICS) to raise funds for infrastructure and sustainable development projects in rising markets and developing countries. Hence, statement 1 is correct.

— NDB has an initial authorised capital of USD 100 billion, which is divided into one million shares with a par value of $100,000 each.

— The Bank’s membership is open to United Nations members. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

(Other Source: http://www.ndb.int)

QUESTION 4

With reference to the Minimum Support Price (MSP), consider the following statements:

1. The Government of India announces the minimum support prices at the beginning of the harvest season for certain crops.

2. Nigerseed is not covered under the MSP.

3. The MSP is announced on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

4. MSPs are guaranteed a price for their produce from the Government.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Explanation

— From seeking implementation of non-price recommendations, a five-year plan for oilseeds, to supply-side bottlenecks in procurement, two key financial departments, a top government think tank, and a department responsible for most of the procurement in the country wrote to the Ministry of Agriculture and Farmers Welfare, expressing concerns before the Cabinet meeting this June to clear the proposal to raise the minimum support price (MSP) of Kharif crops for marketing season.

— The purchase of kharif crops began on October 1 in accordance with a Cabinet decision dated June 19 that enhanced the MSP for 14 kharif crops, including paddy, jowar, bajra, ragi, maize, tur/arhar, moong, urad, groundnut, sunflower seed, soyabean, sesamum, nigerseed, and cotton.

— The highest growth from the previous year was 12.70% for nigerseed in oilseeds, 11.50% for ragi in cereals, and 7.90% for tur in pulses. Hence, statement 2 is not correct.

— The Minimum Support Price (MSP) is a type of market intervention used by the Government of India to protect agricultural producers from significant falls in farm prices.

— The Government of India announces minimum support prices for specific crops at the start of the sowing season based on recommendations from the Commission for Agricultural Costs and Prices (CACP). Hence, statement 1 is not correct and statement 3 is correct.

— MSP is a price set by the Government of India to safeguard producers (farmers) against severe price drops during bumper output years. The minimum support prices are government-guaranteed prices for their produce. Hence, statement 4 is correct.

Therefore, option (b) is the correct answer.

(Other Source: en.vikaspedia.in)

QUESTION 5

Consider the following statements about the World Green Economy Organisation:

1. It emerged in response to the priorities and concerns identified by the Rio+20 United Nations Conference on Sustainable Development in 2012.

2. It seeks to promote the widespread acceptance and increased importance of the green economy.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— The World Green Economy Organisation (WGEO) was founded in 2012 in response to the priorities and concerns identified at the Rio+20 United Nations Conference on Sustainable Development. Its mission is to support emerging global actions towards a green, low-carbon, climate-resilient development model. Hence, statement 1 is correct.

— WGEO aims to expand the acceptance and importance of the green economy in the framework of sustainable development and poverty eradication by integrating financing, technology, and capacity-building. Hence, statement 2 is correct.

— The World Green Economy Organisation (WGEO) is a comprehensive response to the international community’s appeal for a holistic strategy to accelerate progress on how and why a green economy is the greatest path to a safe and prosperous future.

Therefore, option (c) is the correct answer.

(Other Source: worldgreeneconomy.org)

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 87)

Daily subject-wise quiz — Polity and Governance (Week 87)

Daily subject-wise quiz —  Science and Technology (Week 87)

Daily subject-wise quiz — Environment and Geography (Week 87)

Daily subject-wise quiz — Economy (Week 86)

Daily subject-wise quiz – International Relations (Week 86)

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