• The Price Stabilization Fund (PSF) was set up in 2014-15 under the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) to help regulate the price volatility of important agri-horticultural commodities like onion, potatoes and pulses were also added subsequently.
• The scheme provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility and discourage hoarding and unscrupulous speculation. Therefore, statement 1 is correct.
• For building such stock, the scheme promotes direct purchase from farmers/farmers’ association at farm gate/Mandi. Apart from domestic procurement from farmers/wholesale mandis, import may also be undertaken with support from the Fund. Therefore, statement 2 is correct.
• The Price Stabilization Fund will be managed centrally by a Price Stabilization Fund Management Committee (PSFMC) which will approve all proposals from State Governments and Central Agencies.
• The PSF will be maintained as a Central Corpus Fund by the Small Farmers Agribusiness Consortium (SFAC), a society promoted by the Ministry of Agriculture for linking agriculture to private businesses and investments and technology. SFAC will act as Fund Manager. Therefore, statement 3 is not correct.

The Cabinet Mission 1946 recommended an undivided India and turned down the Muslim league's demand for a separate Pakistan. Therefore statement 1 is not correct.

The cabinet mission plan of 1946 proposed that there shall be a Union of India which was to be empowered to deal with the defence, foreign affairs and communications.

It provided that all the members of the Interim cabinet would be Indians and there would be minimum interference by the Viceroy.

All subjects other than the Union subjects and all the residuary powers would be vested in the provinces. Therefore statement 3 is correct.

The Princely states would retain all subjects and all residuary powers.

The representation of the Provincial legislatures was to be broken up into 3 sections.

• Section A: Madras, UP, Central provinces, Bombay, Bihar & Orissa Section B: Punjab, Sindh, NWFP, Baluchistan Section C: Assam and Bengal.

Recognition of Indian Right to cede from the Commonwealth. 

The 1950s and 1960s saw the emergence of the Cold War, that is, power rivalries and ideological conflicts between the USA and the USSR, with both countries creating military alliances. 

This was also the period when colonial empires were collapsing and many countries were attaining independence.

Prime Minister Jawaharlal Nehru, who was also the foreign minister of newly independent India, developed free India's foreign policy in this context.

• Nonalignment formed the bedrock of this foreign policy.

With Yogoslavia, Ghana, Egypt and Indonesia, he formed the non-alignment movement.

NAM was equally important for India and the majority of African nations determined to pursue an independent foreign policy, especially against the backdrop of the bipolar Cold War world.

• Steppe Climate or Temperate Continental Climate or Temperate Grassland Climate lie in the interiors of the continents.
• Though they Lie in the Westerly wind belt [mid-latitudes or temperate region], grasslands are practically treeless due to continentality i.e., remote from maritime influence and lie deep within the interiors of the continents where rain-bearing winds don’t reach. Therefore, statement 2 is NOT correct.
• In Eurasia, they are called the Steppes and stretch eastwards from the shores of the Black Sea to the foothills of the Altai Mountains [2,000 miles long belt]. Therefore, statement 1 is correct.
• Climate is continental with extremes of temperature. Temperatures vary greatly between summer and winter. The summers are hot and the winters are cold. Summers are very warm, over 18-20°C. The steppe type of climate in the southern hemisphere is never severe.

A private member is an MP who is not a minister. He enjoys similar rights to that of a minister in Parliament, except that he cannot introduce money bills and some financial bills. So, statement 1 is wrong as a private member can initiate legislation, even on a subject of national importance.

Statement 2 follows from the above. If a private member can introduce legislation, he can also get alternations passed to them.

The President of India:

• Has the duty to preserve, protect, and defend the constitution.
• But, he is no authority to interpret the constitution.

The Council of Ministers:

• Must function as per the constitutional interpretations of the Judiciary (Supreme Court and High Courts). 

Parliament:

• ​May disagree with the Supreme Court on the interpretation of the constitution.
• It is also empowered to amend the constitution in case of such disagreement.
• However, the Supreme Court gives the final word on the validity of such an amendment and can even strike it down. 
• This tussle between the judiciary and Parliament over constitutional interpretation is best seen in the recent NJAC case. 

Northern Triangle

• The countries of El Salvador, Guatemala and Honduras are known as Northern Triangle.
• These countries share a border tripoint at Trifinio biosphere reserve, and also aspects of classical cultures, history, society, and politics.

• The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
• Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.
• The IMF's primary purpose is to ensure the stability of the international monetary system – the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other.
• The Fund's mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.

• Fundamentally, both refinancing and restructuring are debt reorganization processes taken to strengthen a person or a company’s financial outlook.
• Debt refinancing refers to initiating a new contract, often at better terms than a previous one, to pay off a loan. Therefore, statement 1 is correct.
• Debt restructuring is a more extreme option taken when debtors are at risk of defaulting and negotiate to alter the existing contract. Therefore, statement 2 is correct.

Debt Refinancing:

1. In debt refinancing, a borrower applies for a new loan or debt instrument that has better terms than a previous contract and can be used to pay down the previous obligation.
2. An example of a refinancing would be applying for a new, cheaper loan and using the proceeds from that loan to pay off the liabilities from an existing loan. Refinancing is used more liberally than restructuring because it is a quicker process, easier to qualify for and impacts credit score positively since payment history will reflect the original loan being paid off.

Debt Restructuring:

1. For more dire situations, borrowers can turn to debt restructuring. At the most basic level, restructuring refers to altering an already existing contract (versus refinancing which starts with a new contract).
2. An example of a typical restructuring would be lengthening the due date for the principal payment on a debt contract or modifying the frequencies of interest payments.
3. Restructuring occurs mostly in special circumstances, where borrowers are deemed financially unstable and are unable to meet debt obligations. Restructuring can also negatively affect your credit score, which is why it is a last-ditch strategy.
4. In debt restructuring, the borrowing party must negotiate with the creditor to create a situation where both parties are better off.

• The Global Financial Stability Report (GFSR) is a semi-annual report by the International Monetary Fund (IMF) that assesses the stability of global financial markets and emerging-market financing. It is released twice per year, in April and October. Therefore, statement 1 is NOT correct.
• It introduces a way to quantify vulnerabilities in the financial system, encompassing six sectors: corporate, households, governments, banks, insurance companies, and other financial institutions.
• In addition to assessing the condition of worldwide markets, the GFSR also issues recommendations for central banks, policymakers and others who supervise global financial markets. Therefore, statement 2 is correct.