Ten MCQs on current International and national events - 175

PRERNA FOR IAS

(ASSOCIATE OF SAMKALP)

A-Category MCQs -175

1. With reference to the new Merchant Discount Rate (MDR) framework for UPI payments described in the summaries, consider the following statements:

1. Certain person-to-merchant UPI transactions above ₹2,000 will attract an MDR of 0.4%.
2. The general MDR is capped at ₹300 per transaction.
3. Person-to-person UPI transfers continue to remain exempt.
4. All small merchants receiving UPI payments have been brought under the MDR irrespective of their transaction volume.

Which of the statements given above are correct?

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

Correct Answer: (a)

Explanation: Statements 1, 2 and 3 are correct. From October 15, certain person-to-merchant UPI payments above ₹2,000 will attract a 0.4% MDR, capped at ₹300. Person-to-person transfers remain free. Statement 4 is incorrect because small merchants receiving up to ₹1 lakh monthly through UPI QR codes remain under the zero-MDR framework. The differentiated system attempts to generate resources for cybersecurity, infrastructure and innovation without weakening financial inclusion. Elimination clue: MDR applies selectively; it is not a universal charge on every UPI transaction.

2. With reference to India's merchandise trade performance in August 2026, consider the following statements:

1. Merchandise exports reportedly increased by about 26%.
2. Merchandise exports were approximately $43.8 billion.
3. The merchandise trade deficit narrowed compared with July.
4. A single month of strong export growth necessarily establishes a long-term improvement in India's external sector.

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. Merchandise exports rose to about $43.8 billion, while imports were approximately $70.7 billion, narrowing the merchandise trade deficit to around $26.9 billion from $31.6 billion in July. Statement 4 is incorrect because one month's data cannot establish a durable trend. India's external position also depends on services trade, oil prices, exchange rates and global demand. Elimination clue: UPSC frequently uses words such as “necessarily” or “always” to turn an otherwise reasonable economic statement into an incorrect one.

3. Consider the following statements regarding open-source Artificial Intelligence and technological sovereignty: