UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Advanced Traffic Management System, Foreign Portfolio Investors and more (Week 139)

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The Rupee continued its fall, breaching the 90-mark against the US dollar for the first time, weighed down by persistent equity selling by foreign portfolio investors (FPIs), uncertainty around the India-US trade deal and higher importer demand for the American currency.

— Foreign Portfolio Investors (FPIs) in India are governed under a framework developed by the government in collaboration with regulatory authorities such as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI).

— SEBI is the major regulator of FPIs, overseeing their registration, operational rules, and market compliance.

— FPIs must register with SEBI through an authorised Designated Depository Participant (DDP), such as the National Securities Depository Limited (NSDL). Hence, statement 1 is correct.

— An FPI may own up to 10% of the paid-up equity capital of a listed Indian firm. Hence, statement 3 is not correct.

— The Open Government Data (OGD) Platform India makes available public information about FDI, FPI and market developments in India. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

(Other Source: http://www.investopedia.com)

QUESTION 2

With reference to the current account deficits (CAD), consider the following statements:

1. The CAD always enhances the productive capacity and thus overall GDP growth.

2. A current account deficit happens when a country’s imports exceed its exports in terms of goods and services.

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 country’s current account deficit moderated to $12.3 billion, or 1.3 per cent of the gross domestic product (GDP) in July-September 2025 from $20.8 billion, or 2.2 per cent of GDP, in the year-ago period, the Reserve Bank of India (RBI) data showed.

— In the April-June 2025 period, the current account balance recorded a deficit of $2.4 billion, or 0.2 per cent of GDP. The current account deficit is the difference between exports and imports of goods and services. It is a key indicator of the country’s external sector.

— A current account deficit happens when a country’s imports exceed its exports in terms of goods and services. This deficit reflects a nation’s foreign transactions and can influence economic stability. Hence, statement 2 is correct.

— CAD can be beneficial only if imports are productive (capital goods, tech, machinery). But, it can also arise due to high consumption imports, oil price spikes, weak exports, etc. Hence, statement 1 is not correct.

Therefore, option (b) is the correct answer.

(Other Source: http://www.investopedia.com)

QUESTION 3

The term ‘bull run’ with reference to the stock market refers to:

(a) a prolonged rise in stock prices driven by strong investor confidence

(b) a sudden collapse in stock prices due to panic selling

(c) a period of extremely low trading activity in the market

(d) a temporary suspension of trading due to excessive volatility

Explanation

— Market participants have been in a cheery mood thanks to the stock market trading near record high levels over the past few days. However, the bull run has been dominated by banking, financial services, and a few other big-name stocks. This has skewed the overall picture of the benchmark Nifty 50 and Sensex indices.

— Many big private sector bank stocks are considered heavyweights, or among the most influential, in the indices. This means that if these stocks outperform significantly, it can paint a rosy overall picture even if other sectors underperform.

— The term ‘bull run’ refers to a prolonged rise in stock prices driven by strong investor confidence. In the financial markets, such as stocks, when prices have generally been increasing or are expected to increase, a bull market exists. Bull markets commonly refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.

Therefore, option (a) is the correct answer.

(Other Source: http://www.investopedia.com)

QUESTION 4

With reference to the Advanced Traffic Management System (ATMS), consider the following statements:

1. It has provisions for various electronic enforcement devices which help in speedy identification of incidents.

2. Presently, the ATMS is not installed on any of the highways or expressways in India.

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 Ministry of Road Transport & Highways is expecting to introduce Advanced Traffic Management System (ATMS) across all the National Highways (NHs) in the country. Presently, the ATMS is installed in high traffic density National Highways and National Expressways such as Delhi-Meerut Expressway, Trans-Haryana, Eastern Peripheral Expressway etc. Hence, statement 2 is not correct.

— The Advanced Traffic Management System has provisions for various electronic enforcement devices which help in speedy identification of incidents on the highway stretches and effectively monitor the highways, thereby improving the response time of the on-site assistance. Hence, statement 1 is correct.

— The Government seeks to roll out Advanced Traffic Management System, based on an array of tower- and gantry mounted incident-detecting and speed-monitoring cameras with central monitoring locations, across all National Highways of 4-lane configuration and above.

— The Union Minister also stated that the government is also initiating barrier-less tolling based on Multi-Lane Free Flow (MLFF) Electronic Toll Collection system utilizing integrated technologies, notably Automatic Number Plate Recognition (ANPR) with AI analytics, combined with the existing RFID-based Electronic Toll Collection (FASTag).

Therefore, option (a) is the correct answer.

QUESTION 5

With reference to Nuclear Energy in India, consider the following statements:

1. India currently has more than 20 operational nuclear reactors.

2. Small Modulator Reactors technologies are aimed at supplying clean electricity to remote regions with limited grid infrastructure.

3. The Kudankulam nuclear power project (KKNPP) in Tamil Nadu is the largest nuclear power station in India.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— Russian nuclear company Rosatom State Corporation is likely to make a strong pitch for deploying its small modular reactors (SMR) for targeted applications in India, alongside efforts to position its large new-generation atomic power reactor-based projects as the cornerstone of the bilateral cooperation between the two countries in the field of nuclear energy.

— Russia has a lead in the nascent field of SMRs, which are advanced nuclear reactors that have about a third of the generating capacity of most traditional nuclear power reactors but can produce a large amount of low-carbon electricity.

— Currently, two SMR projects have reached the operational stage globally, with an SMR named the ‘Akademik Lomonosov floating power unit’ that has two-modules of 35 MWe (megawatt electric) and started commercial operation in May 2020. The Lomonosov is a non-self-propelled power barge that doubles up as a floating nuclear power station and is docked in the Pevek harbour, providing heating for the Arctic port town of Pevek and supplying electricity to the regional Chaun-Bilibino power system. It is designated as the world’s northernmost nuclear power plant.

— During the November meeting, the two sides reviewed the progress of the Kudankulam nuclear power project (KKNPP) in Tamil Nadu — the largest nuclear power station in India and the flagship project of the Russian–Indian energy cooperation. Hence, statement 3 is correct.

(file image)

— SMR technologies are aimed at supplying clean electricity to remote regions with limited grid infrastructure, as well as to individual industrial enterprises. India is looking at SMRs as a solution for localised applications, such as energy-hungry data centres, and quick scaling up of base load capacity. Hence, statement 2 is correct.

— India currently has 24 operational nuclear reactors totalling 7,943 MWe of capacity, with six reactors – 4,768 MWe – under construction. Another 10 units – some 7 GWe of capacity – are in pre-project stages. The Centre has a target to expand its nuclear energy capacity to 100 GWe by 2047, for which it plans to pursue a two-pronged approach: the deployment of large-capacity reactors as well as the use of SMRs to ensure faster deployment of units. Hence, statement 1 is correct.

Therefore, option (c) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 134)

Daily subject-wise quiz — Polity and Governance (Week 139)

Daily subject-wise quiz —  Science and Technology (Week 139)

Daily subject-wise quiz — Economy (Week 138)

Daily subject-wise quiz — Environment and Geography (Week 138)

Daily subject-wise quiz – International Relations (Week 138)

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