Prelim 2027 The Hindu, IE &PIB
Microtheme: Economics: "RBI x Functions / Liquidity Management" Repeated 20 times in the UPSC Prelims

With reference to the monetary policy framework of the Reserve Bank of India and the measurement of inflation in India, which one of the following statements is correct?
(a) The inflation target under the framework is specified in terms of the Wholesale Price Index.
(b) The Marginal Standing Facility rate forms the floor of the policy corridor and the Standing Deposit Facility rate forms its ceiling.
(c) Core inflation is the Consumer Price Index inflation rate computed after excluding food and fuel.
(d) The decisions of the Monetary Policy Committee are advisory, and the Governor may set a repo rate different from the one the Committee votes for.

Source link for the above question: https://www.civilsdaily.com/news/rbis-mpc-minutes-signal-a-turn-from-easing-to-tightening/

Prelim 2027 The Hindu, IE &PIB
Microtheme: Economics: "RBI x Functions / Liquidity Management" Repeated 20 times in the UPSC Prelims

Consider the following two statements:
Statement-I: The Reserve Bank of India advanced the closure of the Foreign Currency Non Resident (Bank) swap window even though inflows mobilised under it had exceeded expectations.
Statement-II: Every dollar the central bank absorbs releases rupee liquidity that has to be sterilised, and the cost of sterilisation rises with the size and the duration of the position held.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct

Prelim 2027 The Hindu, IE &PIB
Microtheme: Science and Technology / International Relations: "Nuclear Energy Technology / Nuclear Policy" Repeated 8 times in the UPSC Prelims

Consider the following statements regarding civil nuclear liability in India:
1. Indian law channels liability for nuclear damage to the operator of the nuclear installation, which means a victim need not establish fault before claiming compensation.
2. The Atomic Energy Regulatory Board is a body created by a statute enacted specifically to constitute it as an independent nuclear safety regulator.

Source link for the above question: https://www.civilsdaily.com/news/panel-to-review-nuclear-liability-caps-every-5-years/