1. A government bond with a face value of ₹100 pays a fixed annual coupon of ₹5. An investor purchases it for ₹80 in the secondary market. Which statement correctly identifies its coupon rate and current yield?
(a) The coupon rate is 5%, and the current yield is 5%.
(b) The coupon rate is 6.25%, and the current yield is 5%.
(c) The coupon rate is 5%, and the current yield is 6.25%.
(d) The coupon rate is 6.25%, and the current yield is 6.25%.
2. With reference to the Unified Payments Interface (UPI), consider the following statements:
- It enables instant transfers between bank accounts through participating applications.
- The payer and recipient must use the same application for every transaction.
- It supports both person-to-person and person-to-merchant payments.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
3. Which of the following best describes the Merchant Discount Rate (MDR)?
(a) A government tax imposed on every withdrawal from a bank account
(b) A fee charged to a merchant for processing a digital payment
(c) A discount that a merchant must provide to every digital-payment customer
(d) The interest paid by a bank on a merchant’s savings
4. With reference to “peak water” in a glacier-fed basin, consider the following statements:
- Accelerated melting can initially increase annual glacier meltwater runoff.
- After peak water, shrinking ice reserves can cause glacier meltwater runoff to decline.
- Reaching peak water means that the entire river must immediately stop flowing.
Which of the above statements are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 2 only
5. Consider the following rivers:
- Tons
- Chambal
- Betwa
- Son
How many of the above are direct tributaries of the Yamuna?
(a) Only one
(b) Only two
(c) Only three
(d) All four
6. An application offers a paid subscription with two buttons: “Yes, I care about my family” and “No, my family’s safety does not matter.”
Which dark pattern does this most clearly illustrate?
(a) Drip pricing
(b) Basket sneaking
(c) False urgency
(d) Confirm shaming
7. Consider the following actions:
- Designing a mobile phone with an easily replaceable battery
- Refurbishing used furniture for resale
- Recovering metals from discarded electronic equipment
- Destroying usable unsold products merely to make room for new stock
How many of the above are consistent with a circular economy?
(a) Only one
(b) Only three
(c) Only two
(d) All four
8. Which of the following best distinguishes fiscal deficit from government debt?
(a) Fiscal deficit is total accumulated borrowing, while debt measures only one year’s spending.
(b) Fiscal deficit excludes expenditure on infrastructure, while debt includes it.
(c) Fiscal deficit and government debt are different names for the same amount.
(d) Fiscal deficit measures an annual financing gap, while government debt is an outstanding stock of liabilities.
9. With reference to the Outer Space Treaty, 1967, consider the following statements:
- It prohibits placing nuclear weapons or other weapons of mass destruction in Earth orbit.
- It prohibits military bases and weapons testing on the Moon and other celestial bodies.
- It expressly prohibits every type of conventional weapon in Earth orbit.
Which of the above statements are correct?
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3
10. Which of the following best describes Kessler syndrome?
(a) A process in which orbital collisions create debris that causes further collisions
(b) The loss of satellite signals solely because of clouds in Earth’s atmosphere
(c) The gradual slowing of Earth’s rotation due to satellite launches
(d) The automatic removal of space debris through Earth’s magnetic field
ANSWERS for Daily Current Affairs Prelims Practice (16-09-2026):
1. Answer: (c)
2. Answer: (c)
3. Answer: (b)
4. Answer: (d)
5. Answer: (c)
6. Answer: (d)
7. Answer: (b)
8. Answer: (d)
9. Answer: (c)
10. Answer: (a)
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2026 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040