Q86 · UPSC Prelims 2023 · Set A · Economy

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Consider the following Statements :Statement-I :Switzerland is one of the leading exporters of gold in terms of value.Statement-II :Switzerland has the second largest gold reserves in the world.Which one of the following is correct in respect of the above statements?

A Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement-I
B Both Statement-I and Statement-II are correct and Statement- II is not the correct explanation for Statement-I
C Statement-I is correct but Statement- II is incorrect
D Statement-I is incorrect but Statement-II is correct

Correct answer: (c) Statement-I is correct but Statement- II is incorrect

Explanation

  1. A

    Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement-I

    Both correct and II explains I. Switzerland is a refining and re-export hub, not the second-largest reserve holder.

  2. B

    Both Statement-I and Statement-II are correct and Statement- II is not the correct explanation for Statement-I

    Both correct but II does not explain I. II is false.

  3. C

    Statement-I is correct but Statement- II is incorrect

    I correct, II incorrect. Swiss gold exports lead in value because of refining. US / Germany-scale reserves are larger than Switzerland’s.

  4. D

    Statement-I is incorrect but Statement-II is correct

    I incorrect, II correct. Refining trade is the export story.

Summary. Official key is (c). Switzerland is among the world’s top gold exporters by value because it refines and re-exports bullion. It does not hold the second-largest official gold reserves (the United States is first; Germany is typically second). Statement-II is false and is not why I is true.

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