DART 04-08-26 - Questlink IAS

Economy

Q1. Consider the following statements:

Statement I:

A sharp appreciation of the Japanese yen can trigger capital outflows from emerging market economies.

Statement II:

Investors using the yen as a funding currency may unwind carry trades when the cost of repaying yen-denominated borrowings increases.

Statement III:

Unwinding of carry trades may lead investors to sell financial assets in emerging markets to repay their borrowings.

Which one of the following is correct in respect of the above statements?

(a) Both Statement II and Statement III are correct and both of them explain Statement I.

(b) Both Statement II and Statement III are correct but only one of them explains Statement I.

(d) Neither Statement II nor Statement III is correct.

Ans: (a)

Explanation

Recent appreciation of the Japanese yen has revived concerns over the unwinding of yen carry trades and its impact on emerging financial markets.
Investors borrow in yen because of its historically low interest rates. When the yen appreciates, the cost of repaying these borrowings rises, making carry trades less attractive. Hence, Statement II is correct.
To close their carry trade positions, investors often sell equities and bonds in emerging markets and convert the proceeds into yen, leading to capital outflows. Hence, Statement III is correct.

Both Statements II and III independently explain why a stronger yen can result in capital outflows from emerging markets.

Hence, option (a) is correct.

Miscellaneous

Q2. With reference to the Commonwealth Games 2026, consider the following statements:

The 2026 Commonwealth Games were hosted by Glasgow, Scotland,
India finished fourth in the overall medal tally with 39 medals, including 13 gold medals.
The Games featured a 10-sport programme, including six fully integrated Para Sports.
India was represented by a contingent of 124 athletes, comprising 78 male and 46 female athletes.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1, 2 and 3 only

(d) 1, 2, 3 and 4

Ans: (d)

Explanation

India delivered one of its strongest recent performances at the Commonwealth Games 2026, finishing fourth in the overall medal standings.
The Commonwealth Games 2026 were held in Glasgow, Scotland, from 23 July to 2 August 2026. Hence, Statement 1 is correct.
India secured 39 medals (13 Gold, 17 Silver and 9 Bronze) to finish fourth in the medal tally. Hence, Statement 2 is correct.
The Games were conducted across a 10-sport programme, including six fully integrated Para Sports. Hence, Statement 3 is correct.
India fielded a 124-member contingent, comprising 78 men and 46 women athletes. Hence, Statement 4 is correct.

Hence, option (d) is correct.

Geography

Q3. With reference to the Samudra Manthan - National Offshore Exploration Scheme, consider the following statements:

The scheme provides financial support for drilling deepwater and ultra-deepwater exploration wells to accelerate offshore hydrocarbon exploration.
The scheme is exclusively meant for public sector oil and gas companies, with private operators not being eligible for financial support.

Which of the statements given above is/are not correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Ans: (b)

Explanation

The Union Government recently approved the Samudra Manthan National Offshore Exploration Scheme to accelerate offshore hydrocarbon exploration and strengthen India's energy security.
The scheme allocates financial support for drilling 60 deepwater and ultra-deepwater wells to accelerate offshore exploration and increase hydrocarbon reserves. Hence, Statement 1 is correct.
The scheme is open to both public and private Exploration & Production (E&P) operators and is not limited to public sector companies. Hence, Statement 2 is not correct.

Hence, option (b) is correct.

Geography

Q4. Consider the following pairs:

Place	River
A. Muzaffarabad	Jhelum
B. Gilgit	Gilgit River
C. Rawalakot	Chenab
D. Mirpur	Mangla Reservoir

How many of the above pairs are correctly matched?

(a) Only one

(b) Only two

(d) All four

Ans: (c)

Explanation

Several locations in Pakistan-occupied Kashmir and Gilgit-Baltistan frequently appear in the news due to their strategic and geographical significance and recent eruption of violence.
Muzaffarabad is situated on the Jhelum River near its confluence with the Neelum River. Hence, Pair A is correctly matched.
Gilgit lies on the Gilgit River, a tributary of the Indus. Hence, Pair B is correctly matched.
Rawalakot is not located on the Chenab River. Hence, Pair C is not correctly matched.
Rawalakot is nestled in a saucer-shaped valley in the Pir Panjal Range of the Lesser Himalayas, while the Poonch River flows through the surrounding district and valley about 35 km from the city.
Mirpur is associated with the Mangla Reservoir on the Jhelum River. Hence, Pair D is correctly matched.

Hence, option (c) is correct.

Economy

Q5. Consider the following statements regarding the Indian Statistical Institute (ISI):

It was established by P. C. Mahalanobis in 1931 at Kolkata.
It was declared an Institution of National Importance through an Act of Parliament in 1959.
It functions under the administrative control of the Ministry of Education.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Ans: (a)

Explanation

The Indian Statistical Institute (ISI) was recently in the news following the introduction of the Indian Statistical Institute Bill, 2026, proposing changes to its governance structure.
The Indian Statistical Institute (ISI) was founded by Prasanta Chandra (P. C.) Mahalanobis in 1931 at Kolkata. Hence, Statement 1 is correct.
ISI was declared an Institution of National Importance through an Act of Parliament in 1959. Hence, Statement 2 is correct.
ISI functions under the Ministry of Statistics and Programme Implementation (MoSPI), not the Ministry of Education. Hence, Statement 3 is not correct.

Hence, option (a) is correct.