Explanation

• Option a is the correct answer –  Quantitative tools focus on the volume of money in the entire banking system. These includes
  • CRR (Cash Reserve Ratio)
  • SLR (Statutory Liquid Ratio)
  • Open Market Operations
  • Repo Rate
  • Reverse Repo Rate
  • Bank Rate
• Options b, c, d are qualitative tools – These tools are "selective" and focus on the direction or quality of credit rather than the total volume.
• Moral Suasion is a psychological tool where the Central Bank uses persuasion, pressure, or informal suggestions to get commercial banks to follow its policy guidelines.
• It relies on the authority of the Central Bank rather than legal force to influence lending behavior.
• Direct Action means, when a bank fails to comply with directives, the Central Bank may take punitive measures such as imposing penalties or restricting certain operations.
• This serves as a formal "stick" to ensure that monetary regulations are strictly followed.
• Margin Requirements refers to the difference between the market value of a collateral and the loan amount granted against it.
• By increasing the margin, the Central Bank can discourage borrowing for specific activities, such as stock market speculation

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Explanation

• Recently, the Arunachal Pradesh government has permitted the capture of a tiger after it fatally attacked a police head constable inside Mehao Wildlife Sanctuary.
• Option b is correct – It is located at lower Dibang Valley District, Arunachal Pradesh.
• Established under the Wild Life (Protection) Act, 1972.
• Vegetation present here includes –
  • Tropical Evergreen Forests (up to 900 m)
  • Sub-Tropical & Temperate Forests (900–1800 m)
  • Temperate Broadleaf Forests (1800–2800 m)
  • Temperate Conifer Forests (2800–3500 m)
• It also includes perennial rivers, namely the Deopani, Diphu, and Ahupani, Enjopan and Jowe, which are part of the Brahmaputra River System.

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Explanation

• Statement 1 is incorrect – The Monetary Policy Committee (MPC) is a 6-member statutory body constituted under Section 45ZB of the RBI Act, 1934 (amended in 2016).
• Statement 2 is correct – It sets the policy repo rate to maintain price stability, with the Governor of the RBI acting as Chairperson.
• Statement 3 is correct – MPC determine the policy interest rates required to achieve the inflation target set by the government, while supporting economic growth.
• The decision of the committee would be binding on the RBI

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Explanation

• Statement 1 is incorrect – Kyasanur Forest Disease (KFD), or "monkey fever," is a tick-borne viral hemorrhagic fever caused by the Kyasanur Forest disease virus (KFDV).
• Primarily impacting southwestern India—specifically Karnataka, Kerala, Goa, and Maharashtra i.e Western Ghats regions.
• It causes sudden high fever, severe headache, muscle pain, vomiting, and bleeding.
• Statements 2 and 3 are correct – KFD does not spread from person to person, but it is transmitted to humans by infected Haemophysalis spinigera ticks.
• There is no cure for KFD, prevention through vaccination and tick control is key.
• The Indian Council of Medical Research (ICMR) is developing an improved indigenous vaccine against Kyasanur Forest Disease (KFD).

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Explanation

• Statement 1 is correct – Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold.
• These acts as substitutes for physical gold to reduce import dependency and shift household savings into financial assets.
• Statement 2 is incorrect – SGB’s are issued by the RBI on behalf of the Government of India.
• Statement 3 is correct – SGBs purchased from the secondary market will be subject to capital gains tax.
• Recently, the Retrospective tax on Sovereign Gold Bonds (SGB) in the Budget 2026 shocked investors, raising fairness and policy credibility concerns.

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