Q1. In the context of India’s external sector, consider the following statements:
- A global spike in crude oil prices leads to an expansion of the Current Account Deficit (CAD).
- It causes “imported inflation” through the wholesale price channel.
- It strengthens the value of the Indian Rupee due to higher demand for petroleum products.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Q1. (b) 1 and 2 only
Explanation:
- Statement 1 is correct: India imports ~85% of its crude oil; higher global prices increase import bills, widening the trade deficit and CAD.
- Statement 2 is correct: Higher crude prices raise input costs (fuel, transport, chemicals), causing cost-push or imported inflation, especially visible in WPI.
- Statement 3 is incorrect: Higher oil imports increase demand for US dollars, leading to rupee depreciation, not appreciation.
Q2. Who released the Ease of Doing Business (EoDB) rankings globally?
(a) International Monetary Fund
(b) World Bank
(c) World Economic Forum
(d) United Nations Development Programme
Q2. (b) World Bank
Explanation:
- The World Bank published the Ease of Doing Business (EoDB) rankings annually.
- The report was discontinued in 2020 due to concerns regarding data irregularities and methodology issues.
- It evaluated countries on regulatory ease for businesses (starting business, contracts, taxes, etc.).
Q3. Consider the following pairs:
| Concept | Description |
| 1. Superposition | Ability of qubit to exist in multiple states simultaneously |
| 2. Entanglement | Independent behaviour of qubits |
| 3. Quantum Advantage | Faster computation for specific problems |
Which of the pairs given above are correctly matched?
(a) 1 and 3 only
(b) 1 only
(c) 2 and 3 only
(d) 1, 2 and 3
Q3. (a) 1 and 3 only
Explanation:
- Pair 1 is correct: Superposition allows a qubit to be in multiple states simultaneously, enabling parallel computation.
- Pair 2 is incorrect: Entanglement implies interdependence between qubits, not independence.
- Pair 3 is correct: Quantum advantage refers to superior performance over classical systems for specific problems, not all computations.
Q4. Which organization serves as the secretariat for the Borrowers’ Platform?
(a) International Monetary Fund
(b) World Bank
(c) United Nations Conference on Trade and Development
(d) World Trade Organization
Q4. (c) UNCTAD
Explanation:
- UNCTAD acts as the secretariat, providing technical expertise, coordination, and capacity building support.
- The platform aims to enhance the collective voice of borrowing countries, not replace IMF/World Bank.
Q5. Consider the following statements regarding the Andaman Sea:
- The Andaman Sea is connected to the South China Sea through the Malacca Strait.
- It is bordered by Myanmar and Thailand on its eastern side.
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
Q5. (c) Both 1 and 2
Explanation:
- Statement 1 is correct: The Andaman Sea connects to the South China Sea via the Malacca Strait, a crucial global shipping route.
- Statement 2 is correct: It is geographically bordered by Myanmar (north) and Thailand (east), making it strategically important in Southeast Asia.
