Question map
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?
Explanation
The correct answer is Option 3 because Statement-I is factually accurate, while Statement-II is incorrect.
- Statement-I is correct: Switzerland is consistently among the world's leading exporters of gold by value. This dominance is not due to domestic mining, but because Switzerland is a global hub for gold refining and transit. It imports raw gold and scrap from across the world, refines it to high purity standards, and re-exporters it.
- Statement-II is incorrect: Switzerland does not hold the second-largest gold reserves in the world. According to official data from the World Gold Council, the United States holds the largest gold reserves, followed by countries like Germany, Italy, and France. Switzerland typically ranks within the top ten globally, but it is far from the second position.
Since the first statement is true and the second is false, Option 3 is the only logically sound choice.
PROVENANCE & STUDY PATTERN
Guest previewThis is a classic 'Trade Hub vs. Resource Holder' trap. UPSC tests if you can distinguish between a country that *processes* a commodity (Switzerland refines gold) and one that *hoards* it (USA/Germany hold reserves). Don't memorize top 10 lists blindly; understand the economic function of the country.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Passage lists the leading gold exporting countries and places Switzerland first.
- Gives Switzerland's export value and share, indicating it is the top exporter.
- Tabular entry shows Switzerland at rank 1 in gold export data.
- Provides an associated export value for Switzerland, supporting its top position.
- Explicitly states Switzerland is the largest gold exporter in the world.
- Gives an export value for Switzerland (for 2021), reinforcing the ranking claim.
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