Consider the following statements : Statement-I: Switzerland in one of

Consider the following statements :
Statement-I: Switzerland in one of the leading exporters of gold in terms of value.
Statement-II: Switzerland has the second largest gold reserves in the world.
Which one of the following is correct in respect of the above statements?

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Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Statement-I is correct but Statement-II is incorrect

Statement-I is incorrect but Statement-II is correct

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2023

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Statement-I is correct but Statement-II is incorrect.

Switzerland is a major global hub for gold refining and trading and is indeed one of the leading exporters of gold by value. However, Switzerland does not have the second largest official gold reserves in the world. Countries like the USA, Germany, Italy, and France hold significantly larger gold reserves.

Switzerland’s prominence in the gold market is due to its advanced refining capacity and role as a transit country. It refines a large portion of the world’s newly mined gold and scrap gold before it is exported for distribution globally. As of recent data, the largest holders of official gold reserves are the United States, followed by Germany, Italy, and France. Switzerland’s reserves, while substantial, rank lower down the list (typically outside the top 5).

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