Challenge Prelims V1.0 – Day 67 – GS Paper (Indian Economy)

1. Consider the following statements regarding Green Box Subsidies under the World Trade Organization:

1. Under WTO, Green Box subsidies can be increased without any financial limitation.
2. Subsidies provided under India’s Public Distribution System (PDS) come under Green Box Subsidies.

Which of the statements given above is/are correct?

2. In the context of the World Trade Organization (WTO), consider the following statements with respect to the Amber Box subsidies:

1. These are trade distorting by making products of a particular country cheaper in comparison to other country’s products.
2. Support limit of subsidy is capped at 10% of the total agricultural production for developed countries and at 5% for developing countries.
3. It includes input subsidies such as subsidies for fertilisers, seeds, electricity, etc.

How many of the statements given above is/are correct?

3. The Bretton Woods Agreement led to the creation of which of the following Institutions?

1. World Bank
2. World Trade Organisation
3. International Monetary Fund
4. World Economic Forum

Select the correct answer using the code given below.

4. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:

1. AIIB is a multilateral development bank with a capital size of $100 billion.
2. India is the second-largest shareholder in AIIB.
3. AIIB does not lend to members outside of Asia.

Which of the statements given above is/are correct?

5. India is a member of which of the following institutions of the World Bank Group?

1. International Bank for Reconstruction and Development (IBRD)
2. International Centre for Settlement of Investment Disputes (ICSID)
3. International Finance Corporation (IFC)
4. Multilateral Investment Guarantee Agency (MIGA)
5. International Development Association (IDA)

Select the correct answer using the code given below.

6. With reference to World Bank Group, consider the following pairs:

Institutions: Objectives

1. International Finance Corporation: Reduce poverty by providing zero to low-interest loans.
2. International Development Association: Encourage growth of the private sector in developing countries.
3. Multilateral Investment Guarantee Agency: Promote foreign direct investment into developing countries.

How many of the pairs given above is/are correctly matched?

7. With reference to economic reforms, consider the following pairs:

Consensus: Focus

1. Washington Consensus: Liberalisation of FDI inflows
2. Beijing Consensus: Self-determination and inclusion of selective foreign ideas
3. Santiago Consensus: Social and Economic Inclusion

How many of the pairs given above is/are correctly matched?

8. Consider the following statements regarding the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS):

1. The TRIPS agreement applies to all WTO members.
2. The agreement allows compulsory licensing and government use of a patent without the authorization of its owner.

Which of the statements given above is/are correct?

9. In the context of the Free Trade Agreement (FTA), the “negative list” includes

10. Consider the following statements regarding the World Trade Organization (WTO):

1. WTO is a UN specialized agency.
2. Decision-making at WTO is consensus-based rather than majority voting.

Which of the statements given above is/ are correct?

11. Consider the following statements with reference to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement:

1. It is a multilateral agreement negotiated at the WTO that guarantees minimum standards of IP protection.
2. TRIPS agreement does not allow governments to waive intellectual property rights in the interest of public health.

Which of the statements given above is/are correct?

12. The Extended Fund Facility (EFF) often seen in the news is a special lending mechanism of

13. Consider the following statements regarding Generalized System of Preferences (GSP) that is often seen in the news:

1. It provides opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty.
2. World Trade Organization (WTO) is responsible for GSP annual review to decide which countries can continue to receive trade benefits.

Which of the statements given above is/are correct?

14. Consider the following currencies with reference to the Currency Composition of Official Foreign Exchange Reserves (COFER) by International Monetary Fund (IMF):

1. Canadian Dollar
2. Renminbi
3. Japanese Yen
4. Australian Dollar
5. Russian Ruble

How many of the currencies mentioned above are identified in COFER?

15. Which of the following statements regarding the International Monetary Fund (IMF) is correct?