UPSC Prelims 2016 GS Paper I · Q67 of 100 Economy easy

Consider the following statements : 1. New Development Bank has been set up by APEC. 2. The headquarters of New Development Bank is in Shanghai. Which of the statements given above is/are correct?

  1. (a) 1 only
  2. (b) 2 only ✓ UPSC's answer
  3. (c) Both 1 and 2
  4. (d) Neither 1 nor 2

Why the answer is (b)

• The New Development Bank was established by the BRICS countries (Brazil, Russia, India, China, South Africa) under the Fortaleza Declaration of 2014, with US$ 50 billion initial capital — not by APEC, so statement 1 is wrong.

• Statement 2 is correct: its headquarters is in Shanghai, China; K.V. Kamath of India was its first president.

• Hence 2 only, option (b).

Why the other options are wrong

(a) 1 only
Statement 1 is wrong: NDB was set up by BRICS, not APEC.
(c) Both 1 and 2
Statement 1 is wrong.
(d) Neither 1 nor 2
Statement 2 is correct: NDB is in Shanghai.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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