Officers IAS Academy - Study Group
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Answer: (C)

Statement 1 is correct:To manage extreme volatility, the central bank intervenes in the forex market by selling dollars from its reserves to support a falling rupee, or buying dollars to prevent excessive appreciation when there are heavy capital inflows.

Statement 2 is correct: The RBI utilizes forward market interventions (such as sell-buy swaps) to manage liquidity, absorb immediate spot market pressures, and handle capital-flow dynamics over future horizons.

Statement 3 is correct: The RBI enforces strict regulatory frameworks—such as Net Open Position Limits (NOPL) and hedging thresholds—on Authorised Dealer (AD) banks to curb speculative trading and maintain institutional stability.

Statement 4 is incorrect: Derivatives are tools used to hedge or mitigate currency risk, but they do not completely eliminate market risk or guarantee profits. Improper management or unhedged exposures can actually amplify systemic vulnerabilities and trading losses.

Statement 5 is incorrect: Under regulatory mandates, the RBI requires financial institutions and Authorised Dealers to report over-the-counter (OTC) foreign exchange transactions and derivative contracts to the Clearing Corporation of India Ltd. (CCIL) Trade Repository to ensure market transparency and systemic oversight.

Statement 6 is correct: The primary goal of RBI interventions is not to fix an artificial exchange rate, but to cushion the domestic economy against global external shocks (such as rising crude oil prices or geopolitical tensions) and ensure smooth, orderly market functioning.

Therefore, option C is the correct answer.
Consider the following statements about the Ebola virus:
1. A person infected with Ebola can transmit the virus during the incubation period before symptoms appear.
2. Ebola virus contains a segmented RNA genome.
3. Ebola virus disease and Marburg virus disease are caused by viruses belonging to the same family.
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Answer: (A)

Statement 1 is incorrect: Ebola virus transmission is associated with the onset of symptoms. A person is not considered infectious before symptoms develop.Once symptoms appear, the virus can spread through direct contact with the blood or other body fluids of an infected person, or with contaminated materials.

Statement 2 is incorrect: Ebola virus contains a single-stranded, negative-sense, non-segmented RNA genome.

Statement 3 is correct: Both Ebola virus and Marburg virus belong to the family Filoviridae. Although they belong to the same family, they are different viruses and cause distinct diseases.

Therefore, option A is the correct answer.
Consider the following statements about Keynesian economics:
1. An economy can attain equilibrium even when involuntary unemployment persists.
2. Keynesian economics recommends expansionary fiscal policy irrespective of
inflationary conditions.
3. A deficiency in aggregate demand can lead to a reduction in output and employment.
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Answer: (B)

According to Keynesian economics, an economy can attain equilibrium even when involuntary unemployment persists, as equilibrium does not necessarily imply full employment. Hence, Statement 1 is correct

Keynesian economics supports expansionary fiscal policy during periods of deficient demand and recession. However, it does not recommend such a policy irrespective of inflationary conditions. During high inflation, fiscal restraint may be necessary to control excessive aggregate demand. Hence, Statement 2 is incorrect.

A deficiency in aggregate demand can reduce sales, prompting firms to cut production and employment. Hence, Statement 3 is correct.

Therefore, option B is the correct answer.
Consider the following activities:
1. Visit, Board, Search and Seizure (VBSS)
2. Anti-submarine warfare
3. Damage control and firefighting
4. Search and rescue operations
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Answer: (D)

Activity 1 is Correct: Exercise IBSAMAR IX includes Visit, Board, Search and Seizure (VBSS) drills, which enhance the participating navies' ability to conduct maritime interdiction and inspect vessels suspected of unlawful activities.

Activity 2 is Correct: Anti-submarine warfare is part of the exercise's operational scope, enabling participating navies to practise detecting, tracking and responding to submarine threats.

Activity 3 is Correct: Damage control and firefighting drills help naval personnel improve their ability to manage onboard fires, flooding and other emergencies, thereby enhancing ship survivability.

Activity 4 is Correct: Search and rescue operations help participating navies coordinate responses to maritime emergencies and assist vessels or personnel in distress.

Therefore, option D is the correct answer.
Consider the following statements regarding Quantum Mechanics and Technology:
1. Quantum entanglement enables faster-than-light communication of classical information.
2. A qubit can exist in a superposition of states.
3. Quantum Key Distribution (QKD) can detect eavesdropping by identifying disturbances in quantum states.
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Answer: (B)

Statement 1 is incorrect: While quantum entanglement does link particles instantaneously across vast distances ("spooky action at a distance"), it cannot be used to transmit classical information or signals faster than the speed of light. Because the outcome of a measurement on one particle is fundamentally random, Bob cannot know what state his particle collapsed into without receiving a traditional communication signal (limited by the speed of light) from Alice (known as the No-Communication Theorem).

Statement 2 is correct: Unlike classical bits that must be strictly 0 or 1, a quantum bit (qubit) utilizes the principle of superposition to exist in a linear combination of both states at once, drastically scaling computational parallelism.

Statement 3 is correct: Quantum Key Distribution (QKD) relies on the Heisenberg Uncertainty Principle. Any measurement or interception by an eavesdropper perturbs the quantum states of the photons carrying the key, leaving a detectable trace and ensuring absolute security.

Therefore, option B is the correct answer.
Manas National Park is located in western Assam, along the foothills of the Eastern Himalayas, bordering Bhutan. The Manas River flows through the park.

Important for UPSC: Environment & Ecology → National Parks → Assam → UNESCO World Heritage Sites → Tiger Reserves → Biosphere Reserves → Transboundary Conservation → Endangered Species.
Polymer banknotes are currency notes made from a durable, thin plastic material, usually polypropylene, instead of traditional cotton-based banknote paper.

Important for UPSC: Indian Economy → Currency Management → RBI → Polymer Banknotes → Counterfeit Currency → Currency Printing → Sustainable Materials.
Consider the following statements regarding the National Commission for Women (NCW):
1. The Central Government is legally required to consult the NCW on all major policy matters affecting women.
2. At least one member of the Commission must belong to the Scheduled Castes (SC) and at least one to the Scheduled Tribes (ST).
3. The Commission submits its annual reports directly to the Supreme Court of India for judicial review.
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