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Home » UPSC Prelims Quiz » UPSC Prelims Quiz: January 7, 2026

UPSC Prelims Quiz: January 7, 2026

Q1. With reference to Greenland, consider the following statements:

1. Greenland is an autonomous territory that remains constitutionally linked to Denmark.

2. Greenland exercises independent control over its foreign, defence and monetary policies.

3. The grant of self-government to Greenland occurred after the introduction of home rule.

Which of the statements given above is/are correct?

(a)

1 and 2 only

(b)

1 and 3 only

(c)

2 and 3 only

(d)

1, 2 and 3

Explanation

Statement 1 – Correct: Greenland is an autonomous territory that remains constitutionally linked to Denmark, as explicitly stated in the source.

Statement 2 – Incorrect: Greenland does not control its foreign, defence, security, or monetary policies; these functions continue to be exercised by Denmark.

Statement 3 – Correct: Greenland was granted home rule in 1979, followed later by self-government in 2009, indicating a clear sequential progression.

Answer: (b) 1 and 3 only
Q2. Consider the following statements regarding Greenland:

1. A majority of Greenland’s land surface is permanently ice-covered.

2. The indigenous Inuit population forms a demographic minority in Greenland.

3. Fishing has historically been the mainstay of Greenland’s economy.

Which of the statements given above is/are correct?

(a)

1 and 3 only

(b)

2 only

(c)

1 only

(d)

1, 2 and 3

Explanation

Statement 1 – Correct: About 81% of Greenland’s land surface is covered by ice, indicating that permanent ice cover dominates its physical geography.

Statement 2 – Incorrect: Nearly 90% of Greenland’s population is of Inuit origin, making the indigenous population a clear demographic majority, not a minority.

Statement 3 – Correct: Fishing has historically formed the backbone of Greenland’s economy and remains a central economic activity.

Answer: (a) 1 and 3 only
Q3. With reference to the Global Anti-Base Erosion (GloBE) Model Rules, consider the following statements:

1. They require large multinational enterprises to pay a minimum level of tax in each jurisdiction where they operate.

2. They aim to reduce profit shifting and place a floor under corporate tax competition.

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

Statement 1 – Correct: The GloBE Model Rules under Pillar Two require large multinational enterprises to pay a minimum effective tax rate in every jurisdiction in which they operate.

Statement 2 – Correct: The global minimum tax seeks to curb base erosion and profit shifting to low- or no-tax jurisdictions and to place a floor under corporate tax competition.

Answer: (c) Both 1 and 2
Q4. With reference to the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), consider the following statements:

1. It was launched in 2016 and is jointly led by the OECD and the G20.

2. Pillar One reallocates taxing rights to market jurisdictions where profits are generated.

3. Pillar Two abolishes all tax incentives offered by countries to multinational enterprises.

4. India is a member of the Inclusive Framework.

Which of the statements given above are correct?

(a)

1, 2 and 4 only

(b)

1 and 3 only

(c)

2 and 3 only

(d)

1, 2, 3 and 4

Explanation

Statement 1 – Correct: The OECD/G20 Inclusive Framework on BEPS was launched in 2016 and is jointly led by the OECD and the G20.

Statement 2 – Correct: Pillar One reallocates taxing rights to market jurisdictions where economic activity and profits are generated.

Statement 3 – Incorrect: Pillar Two does not abolish all tax incentives; it allows aligned incentives through safe-harbour and substance-based carve-out provisions.

Statement 4 – Correct: India is an active member of the OECD/G20 Inclusive Framework on BEPS.

Answer: (a) 1, 2 and 4 only
Q5. With reference to the Reserve Bank of India’s role as Banker to the Government, consider the following statements:

1. The RBI undertakes the receipts and payments of the Central Government under a statutory obligation.

2. The management of public debt of the Union Government is a part of RBI’s banking function for the Centre.

3. Treasury Bills can be issued by both the Central and State Governments to meet short-term financing needs.

4. State Development Loans represent dated securities issued by State Governments.

Which of the statements given above are correct?

(a)

1, 2 and 4 only

(b)

1 and 4 only

(c)

2, 3 and 4 only

(d)

1, 2, 3 and 4

Explanation

Statement 1 – Correct: Section 20 of the RBI Act, 1934 statutorily obligates the Reserve Bank of India to undertake the receipts and payments of the Central Government.

Statement 2 – Correct: The same provision explicitly includes management of the public debt of the Union Government as part of RBI’s banking function for the Centre.

Statement 3 – Incorrect: Treasury Bills can be issued only by the Central Government; State Governments are not permitted to issue Treasury Bills.

Statement 4 – Correct: State Governments issue only bonds or dated securities, which are known as State Development Loans (SDLs).

Answer: (a) 1, 2 and 4 only
Q6. With reference to the functions of the Reserve Bank of India, consider the following statements:

1. The RBI prescribes broad parameters of banking operations within which the banking and financial system functions.

2. The RBI manages foreign exchange transactions as part of its role as Banker to Banks.

3. The regulation and supervision of payment and settlement systems is a function distinct from RBI’s role as Monetary Authority.

4. The RBI issues currency notes, but coins are issued and circulated exclusively by the Government of India.

Which of the statements given above are correct?

(a)

1 and 3 only

(b)

1, 2 and 3 only

(c)

1, 3 and 4 only

(d)

2 and 4 only

Explanation

Statement 1 – Correct: The Reserve Bank of India prescribes broad operational parameters for banks as part of its regulatory and supervisory functions.

Statement 2 – Incorrect: Management of foreign exchange is carried out under the Foreign Exchange Management Act (FEMA), 1999, and not as part of RBI’s role as Banker to Banks.

Statement 3 – Correct: Regulation and supervision of payment and settlement systems is a distinct statutory function of the RBI, separate from its role as Monetary Authority.

Statement 4 – Incorrect: Although coins are minted by the Government of India, they are put into circulation by the RBI and not exclusively by the Government.

Answer: (a) 1 and 3 only