UPSC Prelims Practice Questions — Brazil requisitions services of bank managers to combat deforestation
Q1. Which financial institution has historically been the principal promoter and disburser of Brazil's government-subsidised rural credit programmes such as PRONAF and PRONAMP?
- A. Banco do Brasil (Bank of Brazil)
- B. Caixa Econômica Federal
- C. BNDES (Brazilian Development Bank)
- D. Banco Central do Brasil
Q2. The April 2026 deforestation-screening rule applies to subsidised rural loans amounting to roughly what share of Brazil's total rural credit?
- A. About one-fifth
- B. About one-third
- C. About one-half
- D. About two-thirds
Q3. In Brazil's forest-monitoring architecture, what precisely is PRODES?
- A. A system producing accurate annual deforestation rates for the Legal Amazon from satellite imagery
- B. A near-real-time daily alert system flagging fresh forest clearings for enforcement
- C. A land-use and land-cover mapping product for already-deforested areas
- D. The rural property registry recording each farm's legal forest reserve
Q4. Which agency operates the PRODES and DETER satellite systems used to detect Amazon deforestation?
- A. INPE (National Institute for Space Research)
- B. IBAMA (Brazilian Institute of Environment and Renewable Natural Resources)
- C. ICMBio (Chico Mendes Institute for Biodiversity Conservation)
- D. Banco Central do Brasil
Q5. The Glasgow Financial Alliance for Net Zero (GFANZ), the flagship coalition steering the financial sector toward net zero, is chaired by which individual?
- A. Mark Carney
- B. António Guterres
- C. Christine Lagarde
- D. Janet Yellen
Q6. Which was the landmark federal plan launched in 2004 that became the lead instrument driving Brazil's first major sustained fall in Amazon deforestation?
- A. Action Plan for the Prevention and Control of Deforestation in the Legal Amazon (PPCDAm)
- B. Brazilian Forest Code (Lei Florestal)
- C. Amazon Fund
- D. Soy Moratorium
Q7. By approximately how much did Amazon deforestation decline under the PPCDAm between its 2004 launch and 2012?
- A. About 50%
- B. About 65%
- C. About 80%
- D. About 95%
Q8. The April 2026 rule turning bank managers into deforestation inspectors applies to subsidised rural loans worth approximately how much?
- A. US$33 billion
- B. US$53 billion
- C. US$70 billion
- D. US$90 billion
Q9. With reference to India's agricultural credit framework, consider the following statements:
1. Budget 2025-26 raised the Kisan Credit Card short-term loan limit under the Modified Interest Subvention Scheme to Rs 5 lakh.
2. Banks are required to allocate at least 18% of Adjusted Net Bank Credit to agriculture under Priority Sector Lending norms.
3. The collateral-free agricultural loan limit was raised to Rs 2 lakh per borrower with effect from 1 January 2025.
4. The KCC scheme mandatorily links every loan to satellite-verified deforestation/environmental compliance, as in Brazil.
Which of the above is/are correctly identified?
- Budget 2025-26 raised the KCC short-term loan limit under the Modified Interest Subvention Scheme to Rs 5 lakh.
- Banks must allocate at least 18% of Adjusted Net Bank Credit to agriculture under Priority Sector Lending norms.
- The collateral-free agricultural loan limit was raised to Rs 2 lakh per borrower from 1 January 2025.
- The KCC scheme mandatorily links every loan to satellite-verified deforestation/environmental compliance, as in Brazil.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q10. Under the EU Deforestation Regulation, who bears the primary legal obligation to carry out due diligence before a covered commodity is placed on the EU market?
- A. Operators (the companies placing the products on the market)
- B. The European Central Bank
- C. Governments of the exporting (producer) countries
- D. The European Environment Agency
Q11. Comparing the Cerrado with the Amazon rainforest, consider the following statements:
1. The Cerrado holds substantially lower vegetation carbon stocks per hectare than the Amazon rainforest.
2. The Cerrado is regarded as the most biodiverse savanna in the world.
3. The April 2026 deforestation-screening rule applies only to the Amazon and excludes the Brazilian woodlands such as the Cerrado.
Which of the statements given above is/are correct?
- The Cerrado holds substantially lower vegetation carbon stocks per hectare than the Amazon rainforest.
- The Cerrado is regarded as the most biodiverse savanna in the world.
- The April 2026 deforestation-screening rule applies only to the Amazon and excludes the Brazilian woodlands such as the Cerrado.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3