Q1. Consider the following statements regarding the Blue Flag certification scheme:
Statement 1 – Incorrect: The Blue Flag certification is awarded by the Foundation for Environmental Education (FEE), a Denmark-based NGO. FEE is not officially accredited by UNEP or UNESCO. Rather, its international jury includes members from UNEP and UNWTO (United Nations World Tourism Organization), but not formal accreditation by UNEP/UNESCO.
Statement 2 – Incorrect: Blue Flag certifications are awarded for a period of one year, not three.
Statement 3 – Correct: Certified beaches exist in States (e.g., Gujarat, Odisha) and Union Territories (e.g., Puducherry, Diu, Lakshadweep).
Statement 4 – Incorrect: Beaches like Shivrajpur (Gujarat) and Padubidri (Karnataka) are on the western coast, not eastern.
So, only statement 3 is correct.
Correct Answer: (a) Only one
2. Ethanol produced from surplus food grains is classified as second-generation (2G) biofuel under the National Policy on Biofuels.
3. The policy permits blending of ethanol produced from bamboo and agricultural residues with petrol, but only after India achieves 20% blending through first-generation sources.
Statement 1—Correct: Ethanol from sugarcane juice yields the highest ethanol recovery among sugarcane-based feedstocks. In contrast, C-heavy molasses has the lowest recovery and is less preferred under the policy.
Statement 2—Incorrect: Ethanol from surplus food grains (like maize or surplus rice) is still classified as a first-generation (1G) biofuel, even if not directly consumed. Only non-food lignocellulosic biomass and waste are treated as second-generation (2G).
Statement 3—Incorrect: Ethanol from bamboo and agricultural waste (such as rice straw) is permitted now as part of the government’s 2G ethanol initiative, regardless of whether 20% blending from 1G sources is achieved or not. The statement wrongly implies a conditional rollout.
Answer: (a) 1 only
2. Damaged wheat unfit for human consumption
3. Bamboo biomass
4. Millets like jowar and bajra
5. Spent grain from breweries
Select the correct answer using the code below:
- Sugarcane juice (1): A primary first-generation feedstock.
- Damaged food grains (2): Wheat and rice unfit for consumption are allowed.
- Bamboo (3): Qualifies as a second-generation (2G) biofuel source.
- Millets (4): Jowar and bajra are allowed under grain-based ethanol production.
- Spent grain from breweries (5): Not a standard ethanol feedstock under EBP.
Answer: (c) 1, 2, 3 and 4 only
2. Selling government securities under Open Market Operations leads to higher CIC.
3. Increasing the Cash Reserve Ratio (CRR) leads to a decline in CIC.
How many of the above statements are correct?
Statement 1 – Correct: Lowering the SLR allows banks to keep fewer reserves in government securities, freeing up funds for lending. This increases credit flow and liquidity in the market, potentially raising the amount of currency in circulation.
Statement 2 – Incorrect: When the central bank sells government securities, banks use their existing funds to buy these securities. This process absorbs liquidity from the banking system, decreasing the money supply and reducing currency in circulation. Selling securities is a contractionary policy to reduce excess liquidity.
Statement 3 – Correct: Increasing the CRR means banks must hold a larger portion of their deposits with the central bank, reducing their lending capacity. This drains liquidity from the system and decreases money available for the public, reducing CIC.
Correct Answer: (b)
Which one of the following is correct?
Assertion – Correct: RBI tracks CIC to assess liquidity and monetary transmission effectiveness.
Reason – Incorrect: Higher CIC means more cash is held outside banks, reducing their ability to lend, not increasing it. It is seen as a liquidity leakage.
Correct Answer: (c)
2. A higher currency-to-GDP ratio may constrain the RBI’s ability to influence interest rates effectively through liquidity operations.
3. As of FY2024–25, India’s currency-to-GDP ratio is lower than that of both the United States and the Eurozone.
How many of the above statements are correct?
Statement 1 – Correct: After demonetisation, India’s ratio fell to 8.7%; It peaked at 14.4% during FY2020–21 due to precautionary hoarding during COVID.
Statement 2 – Correct: A higher currency-to-GDP ratio implies more cash held outside banks, reducing the RBI’s ability to influence lending rates and control liquidity via monetary tools — i.e., weaker monetary transmission.
Statement 3 – Incorrect (Data-Based): As of FY2024–25, India’s ratio is 11.2%, which is higher than the US (~9%) and slightly higher than or comparable to Eurozone (~10–11%).
Correct Answer: (b)
2. Ahmedabad was awarded as the cleanest city among all cities with a population above 10 lakh.
3. The “Super Swachh League” category, introduced this year, ranks cantonment boards separately from municipalities.
How many of the above statements are correct?
Statement 1 – Correct: For the first time, cities were grouped into five categories based on population – ranging from Very Small Cities (< 20,000) to Million Plus Cities (>10 lakh).
Statement 2 – Correct: Ahmedabad was ranked the cleanest big city (3–10 lakh category), which fits under the “Big Cities” classification, not “Million Plus”, so the statement is correct only if interpreted within the correct population bracket, i.e., it was the cleanest in its respective category.
Statement 3 – Incorrect: The “Super Swachh League” was introduced to create a separate league for cities excelling in cleanliness, not for cantonment boards. Cantonment boards, like Secunderabad, had a separate award, but not under the Super Swachh League.
Correct Answer: (b)
Finland joined earlier in 2023.
Ukraine and Georgia are NATO partners but not yet full members due to unresolved territorial and strategic concerns.
Correct Answer: (b) Sweden
(a) Incorrect: Some stablecoins are issued by private entities, not necessarily with regulatory approval. Also, Bitcoin and Ethereum are not centrally issued either.
(b) Correct: Stablecoins are uniquely defined by their price peg to an external asset (e.g., fiat currency or gold), which gives them stability — unlike Bitcoin or Ethereum which are volatile.
(c) Incorrect: Stablecoins can exist on both permissioned and permissionless blockchains; the blockchain type is not a defining feature.
(d) Incorrect: Many cryptocurrencies, including Ethereum (after the Merge), use proof-of-stake, but that doesn’t distinguish stablecoins from others.
Correct Answer: (b) Its price is pegged to a stable external asset to minimize volatility.
Also Read: What Are Stablecoins?
2. Promoter shareholding in a newly licensed private bank must be reduced to 15% within 12 years from the commencement of operations.
3. All newly licensed private banks must be listed on a stock exchange within six years of obtaining the license.
Which of the statements given above is/are correct?
Statement 1 – Incorrect: The ‘on tap’ licensing policy allows applications at any time, not just during specific windows.
Statement 2 – Correct: Promoter shareholding must be reduced to 15% within 12 years as per RBI norms.
Statement 3 – Correct: The bank must be listed on a stock exchange within six years of starting operations.
Correct Answer: (b) 2 and 3 only