Ten MCQs on current International and national events - 176

PRERNA FOR IAS

(ASSOCIATE OF SAMKALP)

A-Category MCQs -176

1. With reference to the recent India-Pakistan naval incident and bilateral confidence-building measures, consider the following statements:

1. The incident occurred in international waters in the North Arabian Sea.
2. The 1991 India-Pakistan agreement requires naval ships and submarines of the two countries to maintain at least three nautical miles of separation in international waters.
3. Such confidence-building arrangements are relevant only during formally declared wars.
4. Military communication mechanisms can reduce the possibility of accidental escalation between nuclear-armed States.

Which of the statements given above are correct?

(a) 1, 2 and 4 only
(b) 1 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (a)

Explanation: Statements 1, 2 and 4 are supported by the summary. India alleged that the Pakistani vessel's conduct violated Article 10 of the 1991 bilateral agreement, which requires a minimum three-nautical-mile separation between naval ships and submarines in international waters. Statement 3 is incorrect. Confidence-building measures are especially valuable during peacetime tension because they reduce misunderstanding and accidental escalation. Elimination clue: CBMs are designed primarily to prevent crises and miscalculation, not merely to operate after war has begun.

2. With reference to the Employees' Provident Fund Organisation (EPFO), consider the following statements:

1. The mandatory wage ceiling has reportedly been raised from ₹15,000 to ₹25,000 per month.
2. Raising the ceiling can expand the number of workers covered by mandatory provident-fund protection.
3. Higher mandatory contributions can reduce immediate take-home pay for some employees.
4. Such an increase necessarily reduces labour costs for employers.

Which of the statements given above are correct?

(a) 1 and 4 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (b)

Explanation: Statements 1, 2 and 3 are supported by the summary. Raising the mandatory wage ceiling from ₹15,000 to ₹25,000 can bring more organised-sector workers under provident-fund protection and increase retirement savings. However, employees and employers generally contribute to the system. Consequently, larger mandatory contributions may reduce current take-home income and increase employers' labour costs. Statement 4 is therefore incorrect. Elimination clue: Social-security expansion often involves a trade-off between greater future protection and higher present contribution costs.

3. With reference to the BRICS “currency conundrum”, consider the following statements: