IASbaba’s Daily Prelims Test [Day 57]

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IASbaba’s Daily Prelims Test [Day 57]

TOPIC: Economics – International Economic Organizations

1. Consider the following statements regarding New Development Bank?

1. Agreement to establish new development bank was signed at Fortaleza, Brazil.
2. Bank supports Public projects and projects undertaken through PPP mode only.
3. Membership of the bank is open to developing countries only.

Which of the above statements is/are correct?

1. 1 only
2. 1 and 2 only
3. 2 and 3 only
4. All the above

2. Consider the following statements regarding The International Monetary Fund (IMF).

1. Facilitating the expansion and balanced growth of international trade is one of the aims of IMF.
2. India is represented by the union finance minister as the governor and RBI governor as the alternate governor in the Board of Governors of IMF.
3. Decision making at the IMF reflects the relative positions of its member countries in the global economy.

Which of the above statements is/are correct?

1. 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All the above

3. Consider the following statements regarding World Bank group.

1. To become a member of the International Bank for Reconstruction and Development (IBRD), a country must first join theInternational Monetary Fund (IMF).
2. Membership in International Development Association (IDA), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) are also conditional on membership in IBRD.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

4. Extended Fund Facility (EFF) is the most general of the special windows through which IMF offers credit to member countries. Consider the following statements regarding EFF.

1. The EFF was established to provide assistance to countries experiencing serious payments imbalances because of structural impediments.
2. Assistance under EFF features longer program and a longer repayment period.
3. Borrowing under the EFF has no upper limit.

Which of the above statements is/are correct?

1. 1 only
2. 1 and 2 only
3. 2 and 3 only
4. All the above

5. The growing numbers of BIPAs made India vulnerable to investment claims initiated by private investors under the investor-to-state dispute settlement mechanism. With this background consider the following statements regarding Bilateral Investment Promotion and Protection Agreement (BIPA).

1. Under BIPA, the term ‘Investment’ also covers Intellectual Property Rights.
2. It provides for extending National Treatment and Most Favored Nation (MFN) treatment to foreign investments.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

6. Consider the following statements regarding Asian Development Bank.

1. ADB is a multilateral development finance institution that engages only in public sector lending for development purposes.
2. Membership of ADB is open to countries in Asia and Pacific region only.
3. Finance minister is the governor for India in the board of governor at ADB and Secretary, Department of Economic Affairs is the alternate governor.

Which of the above statements is/are correct?

1. 1 and 2 only
2. 3 only
3. 1 and 3 only
4. All the above

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

1. WTO established in 1995, by Uruguay rounds of negotiation.
2. The WTO agreements cover goods, services and intellectual property.
3. The World Intellectual Property Organization (WIPO) is a specialized agency of WTO.

Which of the above statements is/are correct?

1. 1 only
2. 1 and 2 only
3. 1 and 3 only
4. All the above

 8. Consider the following statements regarding the agricultural trade rules in the WTO’s Agreement on Agriculture (AoA).

1. WTO’s Agreement on Agriculture prohibits public procurement and stockholding for food security.
2. As per WTO rules support to farmers support has to be kept within a limit of 10 per cent of the value of production of the product in question.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

9. In WTO terminology, subsidies in general are identified by “boxes”. In this regard consider the following statements.

1. Amber box subsidies are considered to distort production and trade.
2. Green box subsidies do not distort trade, or at most cause minimal distortion.
3. Blue box includes subsidies that are linked to one product, but that do not increase production levels.

Which of the above statements is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All the above

10. Compulsory licensing is when a government allows someone else to produce the patented product or process without the consent of the patent owner. Consider the following statements regarding ‘compulsory licensing’.

1. Agreement on Trade-Related Aspects of Intellectual Property Rights does not allow compulsory licensing.
2. Compulsory license is given exclusively to licensees i.e. the patent-holder cannot produce the goods after granting compulsory license.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

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