Explanation
- A
Agency created by EU to deal with the impact of millions of refugees arriving from Middle East
An EU agency for Middle East refugees would describe aspects of EASO/asylum policy or humanitarian budgets, not the European Stability Mechanism. This option is not the key.
- B
Agency of EU that provides financial assistance to eurozone countries
The European Stability Mechanism is the euro-area’s permanent crisis fund, created by treaty to provide financial assistance to eurozone member States under strict conditionality (after the Greek and wider sovereign-debt crisis). That is why (b) is the official key.
- C
Agency of EU to deal with all the bilateral and multilateral agreements on trade
EU trade agreements are handled by the Commission under the common commercial policy, not by the ESM. This option is wrong.
- D
Agency of EU to deal with the conflicts arising among the member countries
Conflicts among member States are political and CJEU/Council matters, not the ESM’s mandate. This option is not the key.
Summary. Official key is (b) an agency of the EU that provides financial assistance to eurozone countries. The ESM succeeded the temporary EFSF as a Luxembourg-based lender to euro members in distress. It is not a refugee, trade-negotiation or intra-EU conflict body. Conditionality and memoranda of understanding accompany its loans. Only (b) matches the 2010s euro-crisis architecture.
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.
-
2026 · Q78 · General Studies · 2 marks
The Chancellor of the Federal Republic of Germany visited India in January, 2026. Which of the following is/are NOT correct in terms of outcomes of this visit? 1. Signing of a Memorandum of Understanding between the All India Institute of Ayurveda and the University of Hamburg 2. Signing of a Memorandum of Understanding on Youth Hockey Development between Hockey India and the German Hockey Federation 3. Establishment of a bilateral dialogue mechanism on the Indo-Pacific 4. Opening of an Honorary Consul of Germany in Lucknow Select the answer using the code given below: -
2017 · Q20 · General Studies · 2 marks
With reference to the 'Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)', consider the following statements: 1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction. 2. Properties held benami are liable for confiscation by the Government. 3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. Which of the statements given above is/are correct?