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Home » Current Affairs Quiz » UPSC Prelims Quiz: June 18, 2025

UPSC Prelims Quiz: June 18, 2025

Q1. With reference to gender-related indices published by international organisations, consider the following pairs:
IndexPublisher
1. Gender Development Index (GDI)UN Women
2. Global Gender Parity Index (GGPI)UNDP and UN Women
3. Women’s Empowerment Index (WEI)UNDP
4. Gender Inequality Index (GII)World Economic Forum (WEF)
Which of the pairs given above is/are correctly matched?
(a) 2 only
(b) 2 and 3 only
(c) 1, 2 and 3 only
(d) 2, 3 and 4 only

Explanation:

  • Pair 1 – Incorrect: The GDI is published by UNDP, not UN Women.
  • Pair 2 – Correct: GGPI is a joint initiative of UNDP and UN Women.
  • Pair 3 – Correct: WEI is also developed by UNDP and UN Women, but since UNDP is listed, it's not incorrect.
  • Pair 4 – Incorrect: GII is published by UNDP, not the World Economic Forum.

Hence, only Pair 2 and 3 are correctly matched.

Answer: B. 2 and 3 only

Q2. With reference to the Gender Inequality Index (GII), consider the following statements:
  • 1. It includes labour force participation as one of the measured components.
  • 2. A higher value of GII indicates greater gender equality.
  • 3. It captures empowerment using data on educational attainment and parliamentary representation.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Explanation:

  • Statement 1 – Correct: Labour market participation is one of the three key dimensions used in GII.
  • Statement 2 – Incorrect: A higher GII value indicates greater inequality, not equality.
  • Statement 3 – Correct: Empowerment is measured through educational attainment and representation in Parliament.

So, statements 1 and 3 are correct.

Answer: C.

Q3. With reference to the ‘Baku to Belém Roadmap to 1.3T’, consider the following statements:
  • 1. It operationalises Article 2.1(c) of the Paris Agreement, which seeks to align financial flows with climate goals.
  • 2. The $1.3T target is intended to replace the earlier $100 billion annual finance commitment under the UNFCCC.
  • 3. It proposes fixed contributions from both developed and developing countries based on emissions intensity.
  • 4. It affirms CBDR while encouraging a mix of public and private finance mobilisation.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four

Explanation:

  • Statement 1 – Correct: The Roadmap supports Article 2.1(c), which focuses on aligning financial flows with low-emission, climate-resilient development.
  • Statement 2 – Incorrect: The $1.3T goal is a complementary ambition, not a replacement of the earlier $100 billion target.
  • Statement 3 – Incorrect: The Roadmap does not specify fixed contributions or use emissions intensity as a basis. It emphasizes collective scaling, especially for developing countries.
  • Statement 4 – Correct: It supports CBDR, and aims to mobilise a blend of public and private capital.

Answer: B. Only two

Q4. With reference to the 16th Census of India, consider the following statements:
  • 1. The Census will follow a single-phase enumeration process across all states and Union Territories.
  • 2. For the first time, households will have the option to self-enumerate through an official digital platform.
  • 3. The reference date for population data will be uniform across the country, set as March 1, 2027.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Explanation:

  • Statement 1 – Incorrect: The Census is to be conducted in two phases — House-listing and Housing Census followed by Population Enumeration — not a single phase.
  • Statement 2 – Correct: The 2027 Census will allow self-enumeration, a new feature enabling households to use a government portal or app.
  • Statement 3 – Incorrect: The reference date varies — March 1, 2027 for most regions, but October 1, 2026 for snow-bound and remote areas.

Answer: B. 2 only

Q5. Which of the following features distinguish the 16th Census of India from the 2011 Census?
  • 1. Self-enumeration through digital means
  • 2. Inclusion of climate-induced displacement as a reason for migration
  • 3. Enumerators will not visit households that opt for digital self-enumeration
  • 4. Explicit categorization of transgender identity in enumeration forms
Select the correct answer using the code given below:
(a) 1, 2 and 4 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4

Explanation:

  • Statement 1 – Correct: Digital self-enumeration is a new feature in the 2027 Census.
  • Statement 2 – Correct: New migration categories now include displacement due to climate events/natural disasters.
  • Statement 3 – Incorrect: It is not explicitly mentioned that enumerators will entirely skip such households. Physical verification or visits may still occur.
  • Statement 4 – Correct: For gender inclusion, transgender identity will now be explicitly recorded.

Answer: A. 1, 2 and 4 only

Q6. The Labour Force Participation Rate (LFPR) as used in the Periodic Labour Force Survey (PLFS) is best described as:
(a) The proportion of working-age population currently employed in any economic activity.
(b) The ratio of unemployed persons to the total population.
(c) The percentage of people in the labour force (employed or seeking employment) to the total population.
(d) The percentage of working-age persons who are available for work but not actively seeking jobs.

Explanation:

LFPR is defined as the percentage of persons in the labour force (which includes both those working and those seeking/available for work) relative to the total population.

Answer: (c)

Q7. With reference to Cyprus, consider the following statements:
  • 1. The Green Line is a buffer zone maintained by the United Nations, dividing the island into Greek Cypriot and Turkish Cypriot regions.
  • 2. Cyprus gained independence from British rule in 1974, following the Turkish military intervention.
  • 3. The Turkish Republic of Northern Cyprus is recognized only by Turkey.
  • 4. Cyprus is located in Asia but holds membership in the European Union.
  • 5. It is the third-largest island in the Mediterranean, after Sicily and Sardinia.
How many of the above statements are correct?
(a) Only two
(b) Only three
(c) Only four
(d) All five

Explanation:

  • Statement 1 – Correct: The Green Line is indeed a UN-administered buffer zone separating the Greek Cypriot-controlled south and the Turkish Cypriot-controlled north.
  • Statement 2 – Incorrect: Cyprus gained independence from Britain in 1960, not 1974. The 1974 event was the Turkish invasion following a Greek-backed coup.
  • Statement 3 – Correct: The Turkish Republic of Northern Cyprus, declared in 1983, is recognized only by Turkey.
  • Statement 4 – Correct: Cyprus is geographically in Asia, but is a member of the European Union.
  • Statement 5 – Correct: Cyprus is the third-largest island in the Mediterranean, after Sicily and Sardinia.

Answer: C. Only four

Q8.
Assertion (A): The Standing Deposit Facility (SDF) has replaced the fixed reverse repo rate as the operative floor of the Liquidity Adjustment Facility (LAF) corridor.

Reason (R): The SDF allows the RBI to accept collateral-free deposits from banks, thereby enhancing the efficiency of liquidity absorption.
(a) Both A and R are correct, and R is the correct explanation of A.
(b) Both A and R are correct, but R is not the correct explanation of A.
(c) A is correct, but R is incorrect.
(d) A is incorrect, but R is correct.

Explanation:

  • Assertion: Correct. In 2022, RBI formally introduced the SDF as the floor of the LAF corridor, replacing the earlier fixed reverse repo.
  • Reason: Correct. The uncollateralised nature of the SDF gives RBI flexibility and reduces dependency on collateral availability — improving operational efficiency.
  • And R explains A because the key reason for shifting to SDF was to create a clean, collateral-free floor for better liquidity absorption.

Correct Answer: (a)

Standing Deposit Facility (SDF) Rate

The Standing Deposit Facility (SDF) rate refers to the interest rate at which the Reserve Bank of India (RBI) accepts uncollateralised overnight deposits from participants of the Liquidity Adjustment Facility (LAF).

Introduced in 2022, the SDF replaced the Fixed Rate Reverse Repo (FRRR) as the lower bound of the LAF corridor.

Beyond its core role in managing excess liquidity, the SDF also functions as a tool to promote financial stability in the broader monetary system.

Q9. In the context of the RBI’s evolving monetary policy framework, which of the following can be logically inferred if the central bank starts conducting more frequent 14-day variable rate reverse repo auctions?
1. The RBI is attempting to sterilise durable liquidity in a non-permanent manner.
2. It indicates a shift from discretionary liquidity injections to market-based liquidity absorption.
3. It necessarily implies that the RBI has raised the Cash Reserve Ratio (CRR).
4. It reflects the use of the main liquidity tool rather than a marginal/emergency measure.
Select the correct answer using the code below:
(a) 1, 2 and 4 only
(b) 2 and 3 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4

Explanation:

  • Statement 1: Correct. The 14-day variable reverse repo absorbs excess liquidity temporarily (not permanently like OMOs), so it’s sterilisation without being durable.
  • Statement 2: Correct. Auction-based liquidity absorption is a sign of moving away from fixed, discretionary actions to market-responsive measures.
  • Statement 3: Incorrect. Use of reverse repo operations does not necessarily mean CRR has been changed. CRR is a separate instrument.
  • Statement 4: Correct. The 14-day variable repo/reverse repo is considered the main liquidity tool, as mentioned in RBI guidelines.

Answer: a)

Q10. In the context of RBI’s current monetary policy stance, which of the following implications are most appropriately associated with a shift from an ‘Accommodative’ to a ‘Neutral’ stance?
1. The RBI now focuses only on inflation targeting.
2. The central bank retains flexibility to either hike or cut interest rates depending on macroeconomic data.
3. It signals a withdrawal of excess liquidity from the system.
4. It prioritises inflation and growth equally without a predefined bias.
Select the correct answer using the code below:
a) 1 and 3 only
b) 2 and 4 only
c) 2 and 3 only
d) 1, 2 and 4 only

Explanation:

  • Statement 1: Incorrect. A neutral stance doesn’t mean exclusive focus on inflation; it considers both inflation and growth.
  • Statement 2: Correct. It allows the RBI to act in either direction — cut or hike — based on evolving data.
  • Statement 3: Incorrect. Liquidity withdrawal is associated more with a tightening stance.
  • Statement 4: Correct. Neutral stance reflects balanced focus on both growth and inflation, unlike accommodative (growth) or hawkish (inflation) stances.

Answer: (b)

Neutral Monetary Policy Stance

A neutral stance indicates that the Reserve Bank of India (RBI) retains the flexibility to either raise or lower interest rates, depending on evolving economic conditions.

This approach is typically adopted when the central bank assigns equal importance to controlling inflation and supporting economic growth.

It allows policy decisions to be guided by incoming data, enabling movement in either direction as warranted.

🔗 Hawkish, Dovish, Neutral, And Accommodative Monetary Policies Explained