According to the Environmental Protection Agency (EPA), which one of the following is the largest source of sulphur dioxide emissions?

1. Locomotives using fossil fuels
2. Ships using fossil fuels
3. Extraction of metals from ores
4. Power plants using fossil fuels

Explanation

Option (d) is correct

• According to the EPA, the largest sources of SO2 emissions are from fossil fuel combustion at power plants (73%) and other industrial facilities (20%).cAnswer: (d) Power plants using fossil fuels; Difficulty Level: Medium

Consider the following statements:

1. Statement-I: If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.
2. Statement-II: The USA Government debt is not backed by any hard assets, but only by the faith of the Government

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 explains Statement-I
2. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
3. Statement-I is correct, but Statement-II is incorrect
4. Statement-I is incorrect, but Statement-II is correct

Explanation

Option (a) is correct

• In the event of a U.S. debt default, holders of Treasury Bonds may be unable to claim their payments promptly, as such a default reflects the government’s inability to fulfill its debt commitments, potentially delaying or denying payments to bondholders.
• U.S. government debt is not backed by physical assets such as gold or real estate. Rather, it is supported by the government’s “full faith and credit,” which relies on its power to tax, borrow, and print money.
• Thus, the lack of hard asset backing (Statement-II) is the reason bondholders can’t enforce payment in the event of a default (Statement-I).

Answer: (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I; Difficulty Level: Easy