UPSC Prelims 2015— Question 65

Correct answer: Option B. Basel III is a global regulatory framework for banks developed after the global financial crisis to strengthen capital adequacy, leverage controls, liquidity standards and risk management. Its objective is to improve the banking sector’s ability to absorb financial and economic shocks. The other options describe environmental or technology-transfer agreements rather than banking regulation. Option-wise analysis: Option A: “develop national strategies for the conservation and sustainable use of biological diversity” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Option B: “improve banking sector’s ability to deal with financial and economic stress and improve risk management” is correct. It directly matches the factual or conceptual requirement tested by the question and is supported by the principle explained above. Option C: “reduce the greenhouse gas emissions but places a heavier burden on developed countries” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Option D: “transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Prelims takeaway: Focus on the precise institutional role, constitutional provision, geographical association, or technical definition being tested. UPSC questions often place a broadly familiar fact beside a narrowly incorrect qualifier; identifying that qualifier is essential for elimination.