2016 GS Paper I, all questions

UPSC Prelims 2016 · GS Paper I

Question 82: International Relations and Current Affairs

‘European Stability Mechanism’, sometimes seen in the news, is an

aagency created by EU to deal with the impact of millions of refugees arriving from Middle East
bagency of EU that provides financial assistance to eurozone countries
cagency of EU to deal with all the bilateral and multilateral agreements on trade
dagency of EU to deal with the conflicts arising among the member countries

AnswerUPSC’s answer is (b).

The European Stability Mechanism, set up in 2012 as a permanent rescue fund, gives financial assistance on strict conditions to eurozone member countries in or at risk of severe financing problems. It replaced the temporary EFSF and EFSM. It does not handle refugees, trade agreements or disputes among member countries.

Why each option is right or wrong
  • (a) It does not deal with refugees.
  • (b) Right: it provides financial assistance to eurozone countries.
  • (c) Trade agreements are the work of the European Commission, not the ESM.
  • (d) It does not settle disputes between members.

Worth knowing: Strictly, the ESM is an intergovernmental organisation of the eurozone States and not an EU agency; UPSC treated it as one.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2016, General Studies Paper I, Series A. The paper on upsc.gov.in.