UPSC Essentials | Daily subject-wise quiz : Attempt Economy MCQs with answers on imports of non-fuel ethanol, electric vehicle adoption and more (Week 122)

QUESTION 1

With reference to the electric vehicle (EV) adoption, consider the following statements:

1. In the adoption of EVs, India leads among China, the US, and the EU.

2. India has a target of 30 per cent EV sales by 2040.

3. India has the highest EV penetration rate in two-wheelers, followed by cars.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— India will need “soft” mandates – that could become more stringent over time – to accelerate electric vehicle (EV) adoption, the Centre’s apex public policy think tank NITI Aayog has said in a new report.

— Noting India’s progress in EV adoption over the years, largely on the back of government incentives, NITI Aayog Member Rajiv Gauba said, “It’s alright to pat oneself on one’s back, but we also have to acknowledge the fact that the adoption of EVs in India is at a slower pace than not only China, but also the US and the EU. Global penetration is about 17 per cent now, whereas we are at 7.6 per cent.” Hence, statement 1 is not correct.

— To meet the national target of 30 per cent EV sales by 2030, mandates on the sale of certain segments of vehicles such as public buses, freight fleets, and government vehicles could give the market the right signal, according to the report. Hence, statement 2 is not correct.

— According to the report, India has the highest EV penetration rate in three-wheelers (16 per cent), followed by two-wheelers (5 per cent), buses (7 per cent), cars (2 per cent), and trucks (0.07 per cent). Hence, statement 3 is not correct.

Therefore, option (d) is the correct answer.

QUESTION 2

Consider the following statements:

1. Ethanol exports from the US to India are basically for manufacturing alcohol-based chemicals, medicines and other industrial uses.

2. India currently permits imports of non-fuel ethanol and oil, but not whole grain and oilseed.

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

— Even though agriculture, along with the purchase of Russian oil, has emerged as a major sticking point in India-US trade discussions.

— Tree nuts, primarily almonds and pistachios, have been the leading exports from the United States to India, valued at $1.1 billion or more in 2024 and growing at a 42.8% annual rate in the first half of this year.

— Ethanol exports from the US to India, worth over $420 million last year, are basically for manufacturing alcohol-based chemicals, medicines and other industrial uses. The US wants India to open up imports of ethanol also for fuel use, i.e. blending with petrol and diesel. India has been resisting that, just as much as it is not allowing imports of genetically modified (GM) maize and soyabean. Hence, statement 1 is correct.

— US farmers mostly grow only GM maize (corn) and soyabean. India currently permits imports of non-fuel ethanol and oil, produced from GM corn and soyabean respectively, but not the whole grain and oilseed as such. Hence, statement 2 is correct.

Therefore, option (c) is the correct answer.

QUESTION 3

With reference to the Merchant Discount Rate (MDR), consider the following statements:

1. The MDR is levied on merchants by banks that process debit and credit card payments.

2. Since January 2020, there has been no MDR on RuPay debit cards and UPI transactions to promote the adoption of digital payments across the country.

3. It ranges from 5% to 8% of the transaction amount.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— Speculation has been rife that UPI payments may be slapped with a per transaction fee called the Merchant Discount Rate (MDR).

— The MDR is levied on merchants by banks that process debit and credit card payments. Hence, statement 1 is correct.

— It is usually in the range of 1-3 per cent. Hence, statement 3 is not correct.

— Since January 2020, there has been no MDR on RuPay debit cards and UPI transactions to promote the adoption of digital payments across the country. Hence, statement 2 is correct.

Therefore, option (b) is the correct answer.

QUESTION 4

With reference to the PM Jan Dhan Yojana (PMJDY), consider the following statements:

1. It is the government’s flagship financial inclusion programme launched in 2018.

2. It has helped in direct benefit transfers (DBTs).

3. Under the PMJDY, there are account opening charges and account maintenance charges.

4. Its beneficiaries have access to an overdraft facility of up to Rs 10,000.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1, 2, and 4

(c) 2 and 3 only

(d) 2 and 4 only

Explanation

— RBI Governor Malhotra announced that bank accounts opened under the PM Jan Dhan Yojana will be up for an update of accountholders’ KYC (know-your-customer norms).

About PMJDY

— The government’s flagship financial inclusion programme Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched by Prime Minister Narendra Modi ten years ago on August 28, 2014. Hence, statement 1 is not correct.

— It is a National Mission for Financial Inclusion to ensure access to financial services, namely, basic savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner.

— Under the PMJDY, there are no account opening charges, no account maintenance charges, and no minimum balance charges. Free RuPay debit card, with in-built accident insurance cover of Rs 2 lakh, and access to overdraft facility of up to Rs 10,000, are other major features of the scheme. Hence, statement 3 is not correct and statement 4 is correct.

— PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme. Hence, statement 2 is correct.

Therefore, option (d) is the correct answer.

QUESTION 5

The white-backed plant hopper, a pest that spreads the Fiji virus disease, feeds on:

(a) Millet plant

(b) Maize plant

(c) Wheat plant

(d) Rice plant

Explanation

— Crop protection chemicals are commonly known as “pesticides”. These are basically substances sprayed on crops to protect against insects (“pests”) that cause damage, whether directly (by feeding on them) or indirectly (by transmitting disease). They also include fungicides (to control fungal diseases such as blast and sheath blight in rice or powdery mildew and rusts in wheat) and herbicides (to kill or inhibit the growth of weeds).

— Take the white-backed plant hopper, a pest that both feeds on rice plants and also spreads the Fiji virus disease, resulting in their stunted growth. This “dwarfing” disease has been reported by many paddy farmers in Punjab and Haryana during the current kharif growing season. The vector insect here injects the virus while sucking the sap from mostly young plants.

— Farmers generally spray insecticides and fungicides only when they physical observe and assess the pest population or disease incidence to be significant enough to impact crop yield and quality/marketability.

— In recent times, farmers have also been resorting to prophylactic application of “pre-emergent” herbicides around or just after crop sowing. These stop the weeds from coming out, helping keep the field clean from the start. Alternatively, they may use “early post-emergent” herbicides to control weeds at the crop’s initial sensitive growth stage.

Therefore, option (d) is the correct answer.

QUESTION 6

With reference to Scheduled Commercial Bank, consider the following statements:

1.It becomes eligible for debts/loans at the bank rate from the RBI and automatically acquires the membership of a clearing house.

2.It includes Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Scheduled Payments Banks, Scheduled Small Finance Banks and Scheduled Co-operative Banks.

Which of the statements given above is/are true?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

According to financialservice.gov.in

— A Scheduled Commercial Bank (SCB) is a commercial bank which has been included in the Second Schedule of the Reserve Bank of India Act, 1934 (RBI Act). Conditions for inclusion in the Second Schedule of the RBI Act are as stated in section 42(6)(a) of the RBI Act.

— Every Scheduled Commercial Bank enjoys two types of principal facilities: –

(i) It becomes eligible for debts/loans at the bank rate from the RBI

(ii) It automatically acquires the membership of a clearing house. SCBs include Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Scheduled Payments Banks, Scheduled Small Finance Banks and Scheduled Co-operative Banks.

Therefore, option (c) is the correct answer.

QUESTION 7

TRIPS Agreement often seen in news is administered by:

(a) BRICS

(b) UNCTAD

(c) World Trade Organisation

(d) European Union

Explanation

According to wto.org,

— The TRIPS Agreement of WTO, which came into effect on 1 January 1995, is to date the most comprehensive multilateral agreement on intellectual property.

Therefore, option (c) is the correct answer.

QUESTION 8

Consider the following countries:

1. United States

2. China

3. Germany

4. India

5. Japan

6. United Kingdom

Arrange the countries above according to the current GDP rankings, from highest to lowest among the given options.

(a) 1, 2, 6, 4, 3, 5

(b) 1, 6, 2, 3, 4, 5

(c) 1, 2, 3, 5, 4, 6

(d) 1, 2, 3, 4, 5, 6

Explanation

— Below are the top ten largest economies in the world, according to the current GDP (current prices), as of May 2025.

(Source: IMF’s World Economic Outlook | Data as of: May 26, 2025)

Therefore, option (d) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 120)

Daily subject-wise quiz — Polity and Governance (Week 122)

Daily subject-wise quiz —  Science and Technology (Week 122)

Daily subject-wise quiz — Economy (Week 121)

Daily subject-wise quiz — Environment and Geography (Week 121)

Daily subject-wise quiz – International Relations (Week 121)

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