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1. U.S. brokers a “phased” ceasefire
President Trump announced the ceasefire in the early hours of June 24 (around 04:00 GMT) via social media, calling it “Complete and Total,” with Iran halting attacks first and Israel following suit about 12 hours later . The truce was described as “phased”—Iran stops first, then Israel, gradually tapering off hostilities .

2. Mutual military fatigue and tactical gains
Both nations had executed large-scale operations: Israeli strikes on Iran’s nuclear and missile infrastructure (including Mossad-led covert actions) and Iran’s missile barrages targeting key cities and military sites . Each side claimed to have achieved key objectives—the U.S. intel noted Iran’s nuclear program was only “set back by a few months” despite damage .

3. International and regional pressure
European leaders, including Macron, outlined an offer tied to de-escalation and nuclear restrictions . Gulf countries also played a role, using diplomatic channels via Qatar and Saudi Arabia to urge Iran to agree—saying it would help resume talks on Tehran’s nuclear program .

4. Fragile early compliance
The ceasefire stumbled initially: Trump himself scolded both parties for violations, admonishing Israel in particular to “calm down” . Iranian and Israeli officials traded accusations of “blatant” breaches, but the truce largely held as tensions eased

Q4. Consider the following with respect to the RBI’s role in managing government debt:
1. RBI acts as the public debt manager for both Central and State Governments.
2. The government can borrow directly from RBI under the Ways and Means Advances (WMA).
3. WMA are a part of long-term borrowings under the fiscal deficit.

Which of the statements are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

Q3. With reference to the RBI’s Financial Stability Report (FSR), consider the following:
1. It assesses the health of the banking and non-banking financial sectors.
2. It is released annually by the RBI.
3. It includes stress test scenarios for banks under baseline, medium, and severe conditions.

Which of the statements given above are correct?
A. 1 and 3 only
B. 2 and 3 only
C. 1 and 2 only
D. 1, 2 and 3

Q2. Which of the following best explains the concept of ‘RBI’s sterilization operations’?

A. Monetary operations conducted to curb fiscal deficit
B. Operations to adjust liquidity inflows caused by foreign exchange interventions
C. Lending to banks through Repo and MSF to reduce inflation
D. Temporary capital controls imposed by RBI on foreign investors

Q1. In the context of RBI’s role in inflation targeting, consider the following:
1. The inflation target is notified by the RBI in consultation with the Finance Ministry every year.
2. The Monetary Policy Committee (MPC) is accountable to the Parliament.
3. Failure to meet the inflation target mandates RBI to submit a report to the Central Government.

Which of the above statements is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 3 only
D. 1, 2 and 3

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