A
A multilateral treaty requiring all Middle Eastern nations to settle crude oil purchases exclusively in US Dollars.
B
A banking consortium established by the World Bank to clear sovereign debt defaults.
C
A bilateral mechanism allowing trade transactions in local currencies rather than third-party currencies like USD.
D
A digital cryptocurrency launched jointly by the central banks of both nations for retail payments.
Correct answer: (c) A bilateral mechanism allowing trade transactions in local currencies rather than third-party currencies like USD.
Explanation
Option C is correct as the Local Currency Settlement System allows direct Rupee-Dirham trade settlement, bypassing third-party currencies like USD. Options A, C, and D are factually incorrect definitions invented as distractors.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2026 · Q18 · GS II · 15 marks
Should education be treated primarily as a welfare obligation of the state or as a strategic investment for building a globally competitive, knowledge-driven nation? Critically evaluate. -
2026 · Q19 · GS II · 15 marks
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2026 · Q20 · GS II · 15 marks
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2026 · Q24 · General Studies · 2 marks
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2026 · Q60 · General Studies · 2 marks
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