Ques:1
Which of the following is the most likely effect of a rate cut by the European Central Bank (ECB) on Indian economy?
a) Decrease in exports from India due to weakening of Euro.
b) Increase in the cost of borrowing for Indian companies.
c) Strengthening of the Indian Rupee against the Euro.
d) Increase in foreign investments in India due to higher interest rate differentials.
Correct Answer
Answer: d
A rate cut by the ECB typically lowers interest rates in the Eurozone, making Indian assets relatively more attractive due to higher returns, leading to increased foreign investments in India.
Source: The Indian Express (Page 21)
Ques:2
Consider the following statements regarding Paris Climate Agreement, 2015:
It aims to limit global warming to well below 2°C above pre-industrial levels, with efforts to limit the increase to 1.5°C.
It mandates legally binding emission reduction targets for all parties.
Developed countries are expected to provide financial support to developing nations to combat climate change.
How many of the above statements are correct?
a) Only one
b) Only two
c) All three
d) None
Correct Answer
Answer: b (1 and 3 only)
Statement 1 is correct: Paris Climate Agreement sets an ambitious goal to combat climate change by keeping global temperature rise this century well below 2°C and pursuing efforts to limit the increase to 1.5°C.
Statement 2 is incorrect: It does not impose legally binding emission reduction targets on all countries. Instead, countries are encouraged to set their own Nationally Determined Contributions (NDCs) and regularly update them.
Statement 3 is correct: The agreement explicitly calls on developed countries to mobilize $100 billion per year by 2020 to help developing nations transition to low-carbon economies and adapt to climate impacts.
Source: The Indian Express (Page 18)
