1. The largest share of India’s forex reserves is held in the form of Special Drawing Rights (SDRs).
2. SDRs can be exchanged for freely usable currencies during times of external stress.
3. The Reserve Tranche Position with the IMF represents India’s readily accessible claim on the Fund.
Which of the statements given above is/are correct?
Statement 1 – Incorrect: The largest component of India’s forex reserves is foreign currency assets, while SDRs constitute only a small share.
Statement 2 – Correct: SDRs function as an international reserve asset and can be exchanged for freely usable currencies during periods of external stress.
Statement 3 – Correct: The Reserve Tranche Position represents India’s readily accessible claim on the IMF and can be drawn without typical borrowing conditionalities.
Reason (R): In forward market operations, the delivery of foreign exchange occurs at a future date rather than instantly.
Which one of the following is correct?
Assertion – Correct: RBI intervention in the foreign exchange forward market does not immediately reduce domestic liquidity, unlike spot market intervention.
Reason – Correct: In a forward contract, the actual delivery of foreign exchange takes place on a future date, so there is no immediate exchange of rupees.
Link: Since rupee liquidity is not absorbed at the time of entering the forward contract, short-term domestic liquidity conditions remain unchanged. Therefore, the reason correctly explains the assertion.
| Component | Characteristic |
|---|---|
| 1. FX Assets | A. Primary tool for sustained rupee defence |
| 2. Gold | B. Typically deployed only in extreme crisis situations |
| 3. SDRs | C. Valued based on a basket of five global currencies |
| 4. Reserve Tranche Position | D. Functions as an emergency access facility with IMF |
Which of the following is the correct match?
1-A – Correct: Foreign Currency Assets (FCA) constitute the largest and most liquid portion of India’s forex reserves. They are actively used by the RBI for routine intervention (spot and forward) to manage rupee volatility, making them the primary tool for sustained currency defence.
2-B – Correct: Gold forms part of the reserves but is not used for day-to-day exchange rate management due to limited liquidity. It serves a strategic role and is typically deployed in extreme crisis situations as a last-resort buffer asset.
3-C – Correct: Special Drawing Rights (SDRs) are international reserve assets created by the IMF. Their value is derived from a basket of five currencies—US dollar, euro, Chinese renminbi, Japanese yen, and pound sterling.
4-D – Correct: The Reserve Tranche Position (RTP) represents the portion of India’s IMF quota that can be accessed immediately without conditionality, functioning as an emergency liquidity facility for Balance of Payments needs.
1. National AI Skilling Initiative
2. MyWAVES
3. Advanced Electronic Program Guide (EPG) with in-built satellite tuners
Which of the above are aimed at promoting India’s Orange Economy?
Statement 1 – Correct: The National AI Skilling Initiative aims to build a future-ready workforce in the AVGC (Animation, Visual Effects, Gaming, Comics) sector through AI-based training and skill development.
Statement 2 – Correct: MyWAVES promotes user-generated content and enables creators to actively participate in digital storytelling and content ecosystems.
Statement 3 – Correct: Advanced Electronic Program Guide (EPG) with in-built satellite tuners enhances access to digital content (such as DD Free Dish), improving reach and affordability, particularly in remote areas.
Conclusion: All three initiatives contribute to strengthening India’s Orange (Creative) Economy through skilling, content creation, and improved access to digital media.
1. It derives value primarily from intellectual property and cultural creativity.
2. It includes sectors such as AVGC-XR, performing arts, and cultural tourism.
3. It is largely dependent on extraction of natural resources for value creation.
Which of the statements given above are correct?
Statement 1 – Correct: The Orange Economy is driven by intellectual property, creativity, and cultural capital rather than physical goods or natural resources.
Statement 2 – Correct: It includes sectors such as AVGC-XR, performing arts, and cultural tourism.
AVGC-XR: Animation, Visual Effects, Gaming, Comics, and Extended Reality.
It represents a high-growth digital content ecosystem combining storytelling, technology, and immersive media (including VR and AR).
This sector is central to India’s emergence as a global hub for creative and digital industries.
Statement 3 – Incorrect: The Orange Economy does not depend on extraction of natural resources; it is based on creative outputs and intellectual property generation.
1. The Litani River flows entirely within Lebanon and drains into the Mediterranean Sea.
2. The river lies to the north of the Blue Line separating Lebanon and Israel and runs roughly parallel to it.
3. The area between the Blue Line and the Litani River has been designated under a United Nations resolution to remain free of armed groups except those of Lebanon and the United Nations.
Which of the statements given above are correct?
Statement 1 – Correct: The Litani River originates in the Beqaa Valley, flows entirely within Lebanon, and drains into the Mediterranean Sea near Tyre.
Statement 2 – Correct: The river lies to the north of the Blue Line separating Lebanon and Israel and runs broadly parallel to it, forming the northern boundary of the security-sensitive zone in southern Lebanon.
Statement 3 – Correct: Under UN Security Council Resolution 1701, the area between the Blue Line and the Litani River is to remain free of armed groups except the Lebanese Armed Forces and UNIFIL.
1. Tyre was originally an island city that later became connected to the mainland.
2. It was historically associated with a dye extracted from marine organisms.
3. The city developed as a major maritime trading centre in the Mediterranean region.
Which of the statements given above are correct?
Statement 1 – Correct: Tyre was originally an island city and was connected to the mainland by a causeway constructed by Alexander the Great during his siege in 332 BCE.
Statement 2 – Correct: The city was famous for Tyrian purple dye, extracted from Murex sea snails, which became a highly prized luxury commodity in the ancient world.
Statement 3 – Correct: Tyre was a major Phoenician maritime centre and played a key role in Mediterranean trade networks and navigation.