UPSC Essentials organizes subject-based quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Take today’s economics quiz and check your progress. Come back tomorrow and take the international relations quiz.
Consider the following statement regarding India’s edible oil imports.
1. India’s total edible oil imports increased from 2022-2023 to 2023-24.
2. Palm oil imports have increased consistently over the past decade.
3. Sunflower oil imports decreased from 2022-23 to 2023-24.
How many of the above statements are correct?
(a) Only one
(b) only two
(c) All three.
(d) None
explanation
—The United Nations Food and Agriculture Organization’s Vegetable Oil Price Index (baseline value: 2014-16 = 100) rose from 98.7 points in August 2020 to a peak of 251.8 points in March 2022 after Russia’s invasion of Ukraine. Since then, global prices have fallen, with the index in August 2024 standing at 136 points.
—This led the Indian government to unfairly change its tariff strategy from being pro-consumer to being more pro-producer.
— Economic and political concerns led to an increase in soybean import duties and MSP procurement permits.
— India’s edible oil imports reached a record high of 16.5 million tonnes (tonne) in the financial year ending October 2023. Imports in the first 10 months of this oil year were 13.5 million tonnes, down 3.6% from the 14 million tonnes recorded from November. From 2022 to August 2023.
India’s edible oil imports amount to 100,000 tons.
— India’s total edible oil imports decreased from 139.75 million tonnes in 2022-23 to 134.71 million tonnes in 2023-24. Therefore, statement 1 is incorrect.
— The amount of palm oil imported fluctuates from year to year. (See table) Therefore, statement 2 is incorrect.
— Sunflower oil imports increased from 25.46 million tonnes in 2022-23 to 31.14 million tonnes in 2023-24. Therefore, statement 3 is incorrect.
Therefore, option (d) is correct.
question 2
Referring to the green mineral deposit, consider the following statements.
1. There are no restrictions on early withdrawal of Green Deposit.
2. Regulated Entities (REs) are not obligated to pay interest on green deposits to their customers.
Which of the above statements is correct?
(a) 1 only
(b) 2 only
(c) both 1 and 2
(d) neither 1 nor 2
explanation
— The financial sector can play a vital role in the mobilization of resources and their allocation in green activities/projects. RBI, while issuing a framework for acceptance of green deposits by regulated institutions, said that green finance is gradually gaining momentum in India as well.
— Green deposits are term bank deposits that allow investors to finance environmentally friendly projects. The Reserve Bank of India (RBI) launched the Green Deposit Scheme in June 2023.
— If a regulated entity (RE) wishes to raise green deposits from its customers, it must follow the structure outlined therein.
— Regardless of how the funds are allocated or used, REs must pay interest on green deposits to customers in accordance with the agreed terms and circumstances and the aforementioned guidelines. Therefore, statement 2 is incorrect.
— There are no restrictions on early withdrawal of green deposits. Therefore, statement 1 is correct.
— REs may temporarily park proceeds from green deposits pending allocation to green activities/projects in liquidity instruments with a maximum maturity of one year.
— The framework does not include penalties for not allocating funds to green activities/projects. However, they will be subject to supervisory evaluation.
— RE cannot first fund green activities/projects and then collect green deposits. In its current structure, green deposits can only be denominated in Indian Rupees.
Therefore, option (a) is correct.
(Other sources: http://www.rbi.org.in)
Question 3
Consider the following:
1. Foreign currency assets of the Reserve Bank
2. Special Drawing Rights (SDR)
3. Gold reserves held by RBI
Which of the following is included in India’s foreign exchange reserves?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2, 3
explanation
– India’s foreign exchange reserves rose by $12.59 billion in the week ended September 27 to reach a record $704.885 billion, according to Reserve Bank of India (RBI) data.
—This makes the country the fourth economy to hold foreign exchange reserves of more than $700 billion.
— India’s total foreign exchange reserves consist of foreign exchange assets of the Reserve Bank, gold held by the RBI, and Special Drawing Rights (SDRs) of the Government of India.
— India’s reserve position in the International Monetary Fund is not included as part of foreign exchange reserves as it may not be available for immediate demand.
— The RBI has the primary responsibility of collecting, compiling and disseminating data on foreign exchange reserves.
Therefore, option (d) is correct.
Question 4
With reference to the Carbon Boundary Adjustment Mechanism (CBAM), consider the following statements:
1. A tool to put a fair price on the carbon emitted during the production of carbon-intensive products entering the European Union (EU).
2. The final system will be applied from 2030.
3. CBAM will not initially apply to the steel industry.
Which of the above statements is correct?
(a) 1 and 2 only
(b) 3 only
(c) 1 only
(d) 2 and 3 only
explanation
—Finance Minister Nirmala Sitharaman on Wednesday said the European Union’s Carbon Border Adjustment Mechanism (CBAM) is “unilateral and arbitrary” and is creating a trade barrier for Indian industry.
— The Carbon Border Adjustment Mechanism (CBAM) is the EU’s instrument to set a fair price on carbon emissions from the production of carbon-intensive goods entering the EU and to encourage cleaner industrial production in non-EU countries . Therefore, statement 1 is correct.
— CBAM ensures that the carbon price of imported goods is equal to the carbon price of domestically produced goods and that the EU’s climate change targets are not jeopardized. CBAM aims to be consistent with WTO norms.
— CBAM will enter into force in its final regime from 2026, following a transition period from 2023 to 2025. Therefore, statement 2 is incorrect.
— CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon-intensive and at greatest risk of carbon leakage, such as cement, steel, aluminium, fertilizers, electricity, and hydrogen. Ru. Therefore, statement 3 is incorrect.
Therefore, option (c) is correct.
(Other sources: taxation-customs.ec.europa.eu)
Question 5
Referring to the Indo-Pacific Economic Framework for Prosperity (IPEF), consider the following statements:
1. Aims to strengthen anti-corruption measures and promote tax transparency within member states.
2. India refused to sign the IPEF bloc’s agreement on a clean and fair economy.
3. IPEF has a total of 28 members.
How many of the above statements are correct?
(a) Only one
(b) only two
(c) All three.
(d) None
explanation
— India signed the agreement of the US-led 14-member Indo-Pacific Economic Framework (IPEF) bloc on a clean and fair economy. Therefore, statement 2 is incorrect.
— The agreement, signed during Prime Minister Narendra Modi’s visit to the US, aims to accelerate the development, access and deployment of clean energy and climate-friendly technologies. It also aims to strengthen anti-corruption measures and promote tax transparency within member countries. Therefore, statement 1 is correct.
—The Ministry of Industry and Trade says the clean economy agreement will help IPEF partners to improve energy security, reduce greenhouse gas emissions, develop innovative ways to reduce dependence on fossil fuel energy, and foster technical cooperation. It is intended to accelerate efforts in this area.
— The Fair Economy Agreement aims to create a more transparent and predictable business environment, which can facilitate increased trade and investment in member countries’ markets.
— IPEF also provides a platform for technical assistance, concessional funding and viability gap funding.
— IPEF has 14 member countries: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the United States. Therefore, statement 3 is incorrect.
Therefore, option (a) is correct.
Previous Daily Thematic Quiz
Daily Thematic Quiz — Politics and Governance (Week 79)
Daily Thematic Quizzes — History, Culture, and Social Issues (Week 79)
Daily Thematic Quizzes — Environment, Geography, Science, Technology (Week 79)
Daily Subject Quiz — Economics (Week 78)
Daily Thematic Quiz – International Relations (Week 78)
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