2005 General Studies, all questions

UPSC Prelims 2005 · General Studies

Question 72: Economy and Social Development

Consider the following statements :

  1. 1.Poverty Reduction and Growth Facility (PRGF) has been established by the International Development Association (IDA) to provide further assistance to low-income countries facing high level of indebtedness.
  2. 2.Singapore Regional Training Institute (STI) is one of the institutes that provide training in macroeconomics analysis and policy, and related subjects as a part of programme of the IMF Institute.

Which of the statements given above is/are correct?

a1 only
b2 only
cBoth 1 and 2
dNeither 1 nor 2

AnswerThe answer is (b).

Statement 2 is right: the Singapore Regional Training Institute is part of the IMF Institute's programme of training officials in macroeconomic analysis and policy. Statement 1 is wrong: the Poverty Reduction and Growth Facility was set up by the IMF in 1999, replacing the ESAF, and not by the IDA, which is the World Bank's soft-loan arm.

  • 1. The PRGF was set up by the IMF, not by the IDA.
  • 2. The Singapore Regional Training Institute is part of the IMF Institute's programme.

How you could have got this

  1. If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.

    What you needed to know: The PRGF was set up by the IMF, not by the IDA.

  2. Then, if you were sure statement 2 is correct, (d) goes: it leaves 2 out.

    What you needed to know: The Singapore Regional Training Institute is part of the IMF Institute's programme.

Only (b) is left. This one needs every statement.

This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Statement 1 is false: the PRGF is an IMF facility.
  • (b) Correct: only statement 2 holds.
  • (c) Statement 1 is false, so both cannot be right.
  • (d) Statement 2 is true.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2005, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.