Geography

Q1.Consider the following statements:

Statement I:

Transitioning from conventional Blast Furnace–Basic Oxygen Furnace (BF–BOF) steelmaking to low-carbon production routes can significantly reduce the carbon intensity of steel production.

Statement II:

Electric Arc Furnaces (EAFs) generally have a lower emissions intensity than conventional Blast Furnace–Basic Oxygen Furnace (BF–BOF) routes.

Statement III:

Direct Reduced Iron (DRI) can use green hydrogen as a reducing agent, replacing carbon-intensive fossil fuels in the reduction process.

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.

Answer: (a)

Explanation

India is promoting green steel pathways to reduce emissions from its rapidly expanding, but highly carbon-intensive, steel sector.
Decarbonisation: Shifting from Blast Furnace–Basic Oxygen Furnace (BF–BOF) to Electric Arc Furnace (EAF) and Direct Reduced Iron (DRI) routes can substantially reduce steel-sector emissions.
Green Hydrogen: Green hydrogen can replace natural gas as a reducing agent in DRI, offering a near-zero-emission pathway when combined with clean electricity.
The conventional Blast Furnace–Basic Oxygen Furnace (BF–BOF) route is highly carbon-intensive because it relies heavily on coal and coking coal. Shifting towards Electric Arc Furnaces (EAFs) and hydrogen-based Direct Reduced Iron (DRI) can substantially reduce emissions. Hence, Statement I is correct.
Electric Arc Furnaces (EAFs) generally have less than half the emissions intensity of conventional Blast Furnace–Basic Oxygen Furnace (BF–BOF) steelmaking. Therefore, greater use of EAFs can contribute significantly to steel-sector decarbonisation. Hence, Statement II is correct.
Direct Reduced Iron (DRI) can use green hydrogen instead of fossil fuels as the reducing agent. When green hydrogen and renewable electricity are used, the DRI–EAF route can approach near-zero-carbon steel production. Hence, Statement III is correct.

Hence, option (a) is correct.

Economy

Q2. With reference to the Closing Auction Session (CAS) and derivatives trading, consider the following statements:

A mismatch between the closing time of CAS and derivatives trading can increase hedging uncertainty for institutional investors.
SEBI has proposed changes in the methodology for determining derivative settlement prices following concerns over the linkage with CAS-determined closing prices.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer: (c)

Explanation:

SEBI is reviewing the settlement methodology for derivatives after concerns emerged over the mismatch between the Closing Auction Session (CAS) and derivatives trading timings.
Key concern: CAS ends at 3:30 PM while derivatives trading continues for another 10 minutes, creating uncertainty for traders, particularly while hedging positions.
SEBI review: The regulator may propose changes to the determination of derivative settlement prices, with a consultation paper expected to address concerns related to CAS-linked settlement.
Closing Auction Session (CAS) ends at 3:30 PM while derivatives trading continues for another 10 minutes, creating uncertainty for traders seeking to hedge their positions. Hence, Statement 1 is correct.
SEBI has indicated that it may propose changes to the methodology for determining derivative settlement prices and plans to issue a consultation paper. Hence, Statement 2 is correct.

Hence, option (c) is correct.

Environment

Q3. With reference to the Swachh Vayu Survekshan-2026, which one of the following cities topped the ranking among cities with a population of more than 10 lakh?

(a) Indore

(b) Jabalpur

(d) Bhopal

Answer: (c)

Explanation:

Lucknow topped the Swachh Vayu Survekshan-2026 among million-plus cities, reflecting its multi-pronged efforts to control urban air pollution.
Key measures: Cleaner transport, mechanised road sweeping, road paving, scientific waste processing and prevention of open waste burning helped improve air-quality management.
Green cover: Miyawaki plantations and vertical gardens were used to expand greenery in the densely built urban environment.
Lucknow topped the Swachh Vayu Survekshan-2026 among cities with a population of more than 10 lakh, securing 198 points.
It was followed by Indore with 197 points and Jabalpur with 195 points.
The ranking reflected measures such as cleaner transport, road-dust control, scientific waste processing and expansion of urban green cover.

Hence, option (c) is correct.

Science & Tech

Q4. Consider the following statements regarding cooling technologies used in data centres:

Liquid cooling is generally more effective than air cooling because water-based liquids typically have a higher heat capacity than air for the same volume.
In immersion cooling, electronic components are immersed in a non-conductive liquid to absorb and remove heat.
Evaporative cooling generally requires less water than dry cooling, as evaporation provides an energy-efficient means of heat removal.
As of 2026, air-cooling alone is considered practical for a 1-GW data centre because modern AI chips generate relatively low heat densities.

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

Answer: (a)

Explanation:

The rapid growth of AI computing is increasing heat-generation challenges in large data centres, making efficient cooling technologies increasingly important.
Cooling technologies: Liquid, immersion and hybrid cooling offer more effective heat management for high-density computing, while evaporative cooling has significant water requirements.
AI and thermal challenge: Modern AI chips generate very high heat densities, making air-cooling alone impractical for a 1-GW data centre and encouraging hybrid cooling solutions.
Liquid cooling is generally more effective because water-based liquids typically have higher heat capacity than air for the same volume. Hence, Statement 1 is correct.
Immersion cooling involves immersing electronics in a non-conductive liquid that draws away heat. Hence, Statement 2 is correct.
Evaporative cooling requires large quantities of water, whereas dry cooling avoids the water demand associated with evaporation. Hence, Statement 3 is not correct.
As of 2026, air-cooling alone is considered impractical for a 1-GW data centre, particularly because modern AI chips generate very high heat densities. Hence, Statement 4 is not correct.

Hence, option (a) is correct.

Economy

Q5. With reference to Inflation Targeting in India, consider the following statements:

The RBI seeks to contain inflation at 4% within a tolerance band of ±2 percentage points.
An increase in the repo rate can influence inflation by reducing demand for loans and investment.
Inflation targeting operates only through controlling aggregate demand and does not involve inflation expectations.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

Answer: (a)

Explanation:

India has completed a decade of formal inflation targeting, but evidence of a flat Phillips curve and persistently higher household inflation expectations raises questions about its effectiveness.
Phillips Curve: India’s Phillips curve is found to be largely flat, suggesting that reducing output and employment may not bring a commensurate reduction in inflation. The Phillips curve is an economic model that shows an inverse relationship between the unemployment rate and the rate of inflation
Inflation Expectations: Household inflation expectations remain consistently above the RBI’s projections, weakening the expectations channel through which inflation targeting is expected to control inflation.
The inflation-targeting framework aims at 4% inflation with a tolerance band of ±2 percentage points. Hence, Statement 1 is correct.
Higher policy rates can raise lending rates, discourage borrowing and reduce demand. Hence, Statement 2 is correct.
Inflation targeting also works through influencing and anchoring public inflation expectations. Hence, Statement 3 is not correct.

Hence, option (a) is correct.