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PYQ 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?

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. A. (a) Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement-I
  2. B. (b) Both Statement-I and Statement-II are correct and Statement- II is not the correct explanation for Statement-I
  3. C. (c) Statement-I is correct but Statement- II is incorrect
  4. D. (d) Statement-I is incorrect but Statement-II is correct

Answer: C

Explanation

Switzerland is consistently one of the world’s leading exporters of gold by value, often ranking first, due to its role as a major refining and trading hub for gold. This makes Statement I correct. However, Switzerland does not possess the second-largest gold reserves in the world. Countries like Australia, Russia, and South Africa have significantly larger gold reserves. Switzerland’s role is more about processing and re-exporting gold rather than having vast domestic reserves. Therefore, Statement II is incorrect. This question tests knowledge of global economic geography and commodity markets, relevant for UPSC Economy.