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Q86·GS Paper 1 · Prelims 2023

Switzerland — leading gold exporter; has world's second largest gold reserves

EconomyExternal Sector & TradeAssertion-ReasonHardCurrent-affairs-linked

Question

Consider the following statements: Statement-I: Switzerland is one of the leading exporters of gold in terms of value. Statement-II: Switzerland has the second largest gold reserves in the world. Which one of the following is correct in respect of the above statements?

Options

a

Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

b

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

c

Statement-I is correct but Statement-II is incorrect

Answer
d

Statement-I is incorrect but Statement-II is correct

Explanation

Statement-I is correct; Switzerland is the world's primary hub for gold refining and transit, consistently making it the leading exporter of gold by value. Statement-II is incorrect; the United States holds the world's largest sovereign gold reserves, followed by Germany, Italy, and France. Switzerland's reserves are substantial (often around 7th) but not second.

A country can dominate the global export volume of a commodity (via refining and trade) without possessing the largest sovereign reserves of it.

Answer: (c).

Question details

Year

2023

Paper

GS Paper 1

Question

Q86

Subject

Economy

Sub-topic

External Sector & Trade

Type

Assertion-Reason

Difficulty

Hard

Nature

Current-affairs-linked

Source hint

World Gold Council Global Bullion / Gold Refining Trade 2022

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