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UPSC Prelims 2023 · World Geography · Countries, Rivers and Resources
Consider the following Statements: Which one of the following is correct in respect of the above 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.
- (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
- (d) Statement-I is incorrect, but Statement-II is correct
Show the answer and explanation
Answer: (c) Statement-I is correct, but Statement-II is incorrect
Switzerland exports gold because it refines it; it doesn’t have the 2nd-largest reserves.
Statement by statement
1. ✓ CORRECT Switzerland is one of the biggest gold exporters by value — it refines about two-thirds of the world’s gold.
2. ✗ WRONG Its reserves are ~1,040 tonnes, about 7th–8th; the USA and Germany hold far more.
Why the others are wrong
(a) Accepts 2nd-largest reserves.
(b) Accepts 2nd-largest reserves.
(d) Rejects its export role.
The trap
Big exporter → big reserves feels logical. Switzerland refines imported gold.
🔒 Gold reserves: USA > Germany > Italy > France > Russia > China. Refining hub: Switzerland.
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