Civil Services Prep

Prelims 2023 · Economy · Question 66

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?

  1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct

Answer

Statement-I is correct but Statement-II is incorrect

Statement-I: Correct. Switzerland is a major global exporter of gold by value because it is a leading hub for gold refining, trading and re-export, even though it is not a major gold miner.

Statement-II: Incorrect. Switzerland does not have the second largest official gold reserves in the world; countries like the USA, Germany, Italy and France hold larger reserves.

Answer logic: Since Statement-I is correct and Statement-II is incorrect, the correct option is (c).

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