UPSC 2022 Prelims Questions with Answers

Explanation

Statement 1 is correct: Guchhi mushroom is a species of fungus in the family Morchellaceae of the Ascomycota. They are prized for their unique, honeycomb-like appearance.

Statement 2 is correct: It is grown in the foothills of Himalayas mostly in the temperate forests of Himachal Pradesh, Uttaranchal, and Jammu and Kashmir.

Statement 3 is incorrect: These mushrooms cannot be cultivated commercially due to their specific growth conditions. Found in conifer forests of temperate regions, they grow only in high mountain areas after the snow melts and are harvested wild by local communities.

Explanation

Golden Mahseer is also known as the tiger of Indian rivers. It is a species of the genus Tor. The Golden Mahseer, the longest-living freshwater fish, is native to mountain and sub-mountain regions found in the Himalayan Rivers (Indus, Ganga and Brahmaputra). The Pong Dam reservoir supports an ample population of the golden Mahseer. IUCN Conservation Status: Endangered. The Indian Nightjar (Caprimulgus asiaticus), Spoonbill (Platalea leucorodia), and White Ibis (Threskiornis aethiopicus) are all bird species found in India.

Explanation

Statement 1 is correct: Pursuant to the recommendations made by the H N Sanyal Committee, the Contempt of Courts Act, 1971 was passed to bring transparency and more clarity in the concept of contempt of court.

Statement 2 is correct: The Supreme Court and the High Courts of India have been empowered with the power to penalise for Contempt of Court under Articles 129 and 215 respectively of the Constitution of India.

Statement 3 is incorrect: The Constitution of India does not define Civil Contempt and/or Criminal Contempt. However, the expression has been defined by the Contempt of Court Act of 1971.

Statement 4 is correct: Article 142 (2) of the Indian Constitution empowers the Supreme Court to make any order necessary for securing the attendance of any person, the discovery or production of any documents, or the investigation or punishment of any contempt of itself, subject to the provisions of any law made in this behalf by Parliament. The Parliament passed the Contempt of Court Act of 1971 pursuant to this.

Explanation

Statement 1 is incorrect: The term "advocate" under the Advocates Act, 1961 refers to a person who has been enrolled as an advocate in the state Bar Council and is authorized to practice law in courts. Corporate lawyers and patent attorneys, however, are not excluded from recognition as advocates. Corporate lawyers often practice in corporate law firms, while patent attorneys handle intellectual property law.

Statement 2 is correct: The Bar Council of India is responsible for overseeing legal education, setting standards for law colleges, and recognizing institutions that offer law degrees. This power extends to setting norms and conditions for legal education to meet the standards required to practice law in India.

Explanation

The term "Indirect Transfers" in the Indian context refers to situations where a foreign entity transfers shares, and those shares derive significant value from assets located in India. This concept gained prominence due to high-profile tax cases such as Vodafone and Cairn Energy. Case Study: In 2007, Vodafone International Holdings BV acquired shares of a Cayman Islands-based company which indirectly owned a majority stake in Indian telecom operator Hutchi-son Essar Limited. Although this transaction took place outside India between two foreign entities, India’s tax authorities argued that it involved the indirect transfer of Indian assets and demanded capital gains tax. Vodafone challenged this tax demand and the Supreme Court of India (2012) ruled in Vodafone’s favor, stating that indirect transfers were not taxable under Indian law at the time. The Indian government later amended tax laws retroactively, reinforcing its authority to tax such transactions. This led to international arbitration, which again ruled in Vodafone’s favor, citing unfair taxation practices.

Explanation

Option (c) is correct: Gandikota canyon is situated on the Pennar River in Andhra Pradesh and is known as the Grand Canyon of India. Gandikota is a small village in the Kadapa district of Andhra Pradesh. Gorges are formed when rivers erode through gigantic rock formations over a long period of time. A gorge is any valley formed by a source of water flowing between tall slabs of steep rocks. The swift flowing waters of River Pennar cut through the granite rocks near the village of Gandikota, naturally eroding the rock and forming a deep valley.

Explanation

Pair 1 is incorrectly matched: Namcha Barwa is not situated in Garhwal Himalayas. It is part of Eastern Himalayas marking the easternmost section of the Himalayas. The peak lies inside the Great Bend of the Yarlung Tsangpo River, where the river takes a significant turn before entering India as the Brahmaputra.

Pair 2 is correctly matched: The part of the Himalayas lying between Satluj and Kali rivers is known as Kumaon Himalayas. Nanda Devi is part of the Kumaon Himalayas located in the Chamoli district of Uttarakhand. The peak is flanked by the Rishi-ganga valley to the west and the Goriganga valley to the east. The surrounding Nanda Devi National Park was recognized for its unique biodiversity and was declared a UNESCO World Heritage Site.

Pair 3 is incorrectly matched: Nokrek Peak stands as the high-est point in Meghalaya’s Garo Hills, situated in northeastern In-dia. It belongs to the Shillong Plateau and is geographically separate from the Sikkim Himalaya which is located further north in Sikkim. It is recognized for its diverse flora and fauna and the Nokrek region has been designated a UNESCO Biosphere Re-serve.

Explanation

Pair 1 is incorrectly matched: The Ghataprabha Reservoir is built on the Ghataprabha River, a tributary of the Krishna River, located in the Belagavi district of Karnataka(not Telengana). It provides irrigation to the drought-prone regions of north Karnataka. The Gokak Falls is located on this river.

Pair 2 is correctly matched: The Gandhi Sagar Dam is constructed on the Chambal River is situated in the Mandsaur and Neemuch districts of Madhya Pradesh. It is one of the five major dams of the Chambal Valley Project and plays a vital role in irrigation and hydroelectricity.

Pair 3 is incorrectly matched: The Indira Sagar Dam is the largest dam in India, in terms of volume of water stored in the reservoir. It is located in Madhya Pradesh, not Andhra Pradesh. It is built on the Narmada River and is one of the largest reservoirs in India.

Pair 4 is incorrectly matched: The Maithon Dam is built on the Barakar River, a tributary of the Damodar River. It is situated in Dhanbad district of Jharkhand. It is a key component of the Damodar Valley Corporation (DVC) project, controlling floods and generating hydroelectric power.

Explanation

Statement 1 is correct: When a company uses its funds to acquire or upgrade physical assets, it is called Capital Expenditure (CapEx). These assets can include property, plants, buildings, technology, or equipment. CapEx is intended to provide long-term benefits to the organization.

Statement 2 is incorrect: When a company borrows money to be paid back at a future date with interestit is known as debt financing. It is not a capital expenditure. Equity financingis the process of raising capital through the sale of shares.It is an example of non-debt capital receipts, not revenue expenditure.

Explanation

Statement 1 is correct: In India, people save through various financial options, including bank deposits, pension funds, insurance schemes, and government securities. Some of these savings are invested in government bonds and securities, helping the government fund its expenditures and manage its budget shortfall. Thus a portion of household financial savings is used to support government borrowing.

Statement 2 is correct: The Indian government raises money by issuing dated securities, which are long-term bonds with a fixed maturity date. Their interest rates are decided by market demand and supply. The government sells these securities through auctions, where banks, financial institutions, and investors place bids. These bonds make up a large part of the government’s internal debt, which is the money it owes to lenders with-in the country. The share of marketable securities in internal debt is at 76.4 per cent at end-March 2023 which is slightly moderate relative to 76.9 per cent at end-March 2022. The share of dated securities in public debt stood at 66.3 per cent at end-March 2023.

Outstanding Marketable Dated Securities (₹ crore, actuals at end-March)