UPSC 2023 Prelims Questions with Answers

Explanation

Option 4 is correct: The Rann of Kutch in Gujarat is an extensive marshland formed due to repeated falls in sea level. This region was a shallow part of the Arabian Sea. Over time tectonic activity and sea level changes caused the area to be-come landlocked and created a vast salt marsh. During monsoons it gets flooded and in the dry season it turns into a salty desert.

Option 1,2 and 3 are incorrect:

Bhitarkanika Mangroves is located in Odisha. These mangroves are coastal wetlands characterized by tidal waters and mangrove forests and not by repeated falls in sea level. Marakkanam Salt Pans is situated in Tamil Nadu. These are man-made salt pans used for salt production and not natural marshlands formed by sea level changes. Naupada Swamp is a freshwater wetland, not a salt marsh formed by sea level fluctuations. It is located in Andhra Pradesh.

Explanation

Statement-I is correct: Although India has significant uranium deposits, its reliance on coal for electricity production is higher compared to uranium. It constitutes 55% of the nation’s energy requirements. Statement-II is incorrect: For electricity generation, uranium enrichment to a level of 3 to 5 percent of the Uranium (235) isotope is necessary. Research reactors utilise uranium enriched to a minimum concentration of 20%. Uranium enriched to at least 90% is classified as weapons-grade uranium.

Explanation

The UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative was introduced in 2015 as a pilot project to investigate inventive approaches to financing sustainable infrastructure endeavours in developing nations. The initiative sought to capitalise on UNOPS’ proficiency and track record in providing infrastructure solutions that align with the requirements and ambitions of individuals and communities. The S3i initiative provides initial funding for significant projects in affordable housing, renewable energy, and health infrastructure. It does not emphasise investments in mass rapid transport infrastructure.

Explanation

Option 1 is correct: The National Commission for Backward Classes (NCBC) was initially constituted by the Central Govt through the National Commission for Backward Classes Act, 1993, which was repealed through the National Commission for Backward Classes (Repeal) Act, 2018. At present, the commission has been accorded Constitutional Status and constituted through the Constitution (One Hundred and Second Amendment) Act, 2018 whereby Article 338B has been inserted, forming a Commission for the socially and educationally backward classes to be known as National Commission for Backward Classes.

Option 2 is incorrect: The National Human Rights Commission (NHRC) of India was established under the Protection of Human Rights Act (PHRA), 1993 and amended by the Protection of Human Rights (Amendment) Act, 2006. It is in conformity with the Paris Principles, for the promotion and protection of human rights. Section 2(1)(d) of the PHRA defines Human Rights as the rights relating to life, liberty, equality and dignity of the individual guaranteed by the Constitution or embodied in the International Covenants and enforceable by courts in India.

Option 3 is incorrect: The Law Commission of India is a non-statutory body and is constituted by a notification of the Government of India, Ministry of Law & Justice, Department of Legal Affairs with a definite terms of reference to carry out research in the field of law and the Commission makes recommendations to the Government (in the form of Reports) as per its terms of reference.

Option 4 is incorrect: The National Consumer Disputes Redressal Commission (NCDRC), India, is a quasi-judicial commission in India that was set up in 1988 under the Consumer Protection Act, 1986 (now replaced by the Consumer Protection Act, 2019).

Explanation

The Fifteenth Finance Commission (XVFC)’s Term of Reference was unique and wide-ranging in many ways. The Commission was asked to recommend performance incentives for States in many areas like the power sector, adoption of DBT, solid waste management, etc. The XV FC’s Report is organised in four volumes and deals with two kinds of devolution:

Vertical Devolution: distribution of net proceeds of taxes between the Union and states. Horizontal Devolution: distribution of net proceeds of taxes among the states. Options 1, 2 and 5 are correct:

Horizontal Devolution based on principles of need, equity and performance, the overall devolution formula is as follows:

Criteria Weight (%) Tax and Fiscal Efforts 2.5 Demographic Performance 12.5 Demographic performance: States with better performance in controlling population growth were rewarded (12.5% weightage). Forest and ecology: States with a larger share of dense forest area received weightage (10%). Tax and fiscal efforts: States with higher tax collection efficiency were rewarded (2.5%). Options 3 and 4 are incorrect: Governance reforms and stable government were not part of the criteria used by the Fifteenth Finance Commission for horizontal devolution.

Explanation

With reference to Indian History, Alexander Rea, A. H. Longhurst, Robert Sewell, James Burgess and Walter Elliot were all associated with archaeological excavations. Alexander Rea (1858-1924) was an archaeologist who worked mainly in South British India and is known for unearthing a sarcophagus from the hillocks of Pallavaram in Tamil Nadu. He arrived in India in 1882 and became assistant of Burgess in the Archaeological Survey of India (A.S.I.), Madras Division. He went on to become Superintendent of the Archaeological Survey of Southern India (1902). Albert Henry Longhurst (1876-1955) was an archaeologist and art historian who worked in India and Ceylon. He was in charge of the systematic digging of Nagarjunakonda (1927-1931). Robert Sewell (1845-1925) was a civil servant in the Madras Presidency in colonial India. He undertook archaeological work at the Amaravati stupa. The site had previously been surveyed by Colin Mackenzie and Walter Elliot (1803-1887). James Burgess (1832-1916) was the founder of the Indian Antiquary in 1872 and an important archaeologist of British India in the 19th century. From 1886-89 he was Director General of the Archaeological Survey of India.

Explanation

Statement I is incorrect: Both interest and dividend income received from InvITs are taxable in the hands of investors. Interest income is treated as "income from other sources" under the Income Tax Act, 1961, and is subject to tax as per the applicable income tax slab rates. Dividends are taxable in the hands of investors, and the InvITs are required to deduct Tax Deducted at Source (TDS) before distributing dividends as of the current tax regime (post-2020).

Statement II is correct: InvITs are recognized as borrowers under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(SARFAESI Act). This recognition allows InvITs to raise funds by issuing debt securities and provides a legal framework for lenders to enforce security interests in case of default. The SARFAESI Act is a critical legislation for the financial sector, enabling banks and financial institutions to recover non-performing assets (NPAs) efficiently.

Explanation

Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. They facilitate the raising of capital for businesses, governments, and other entities. Capital markets include:

Government Bond Market: Government bonds are long-term debt instruments issued by the government to finance its expenditures. They are part of the capital market because they have maturities typically longer than one year. Stock Market: The stock market is a quintessential part of the capital market, as it deals with the buying and selling of equity shares, which represent ownership in companies. Markets Not Included in Capital Markets:

Call money market is part of the money market, not the capital market. It deals with short-term funds (typically with maturities of 1 day to 14 days) used for interbank lending and borrowing. It is used to meet short-term liquidity requirements. Treasury bills (T-bills) are short-term debt instruments issued by the government with maturities of less than one year (usually 91 days, 182 days, or 364 days) which are part of the money market.

Explanation

In finance, beta is a numerical metric that gauges a stock’s volatility in relation to overall market fluctuations. It represents systematic risk, which stems from broader market movements, rather than company-specific factors. A benchmark index like the S&P 500 is assigned a beta value of 1.0 which serves as a reference point for evaluating individual stocks:

Beta > 1.0: The stock experiences greater volatility than the market. For instance, a beta of 1.3 implies that the stock is 30% more volatile than the market. Beta = 1.0: The stock moves in sync with the market. Beta < 1.0: The stock is less volatile compared to the market. Investors use beta to determine how a stock contributes to the overall risk of a diversified portfolio. A higher beta indicates greater risk but also the potential for higher returns, while a lower beta signifies reduced risk and lower expected returns. This concept plays a key role in the Capital Asset Pricing Model (CAPM) which estimates an asset’s expected return based on its beta and the anticipated market returns.

Explanation

Statement 1 is incorrect: Home Guards are raised under the Home Guards Act and Rules of the States/Union Territories. The Ministry of Home Affairs provides policy guidance, but the implementation is state-specific.

Statement 2 is correct: The role of Home Guards is to serve as an auxiliary Force to the police in the maintenance of internal security situations, help the community in any kind of emergency such as an air raid, fire, cyclone, earthquake, epidemic etc., help in the maintenance of essential services, promote communal harmony and assist the administration in protecting weaker sections, participate in socio- economic and welfare activities and perform Civil Defence duties.

Statement 3 is correct: Fifteen Border Wing Home Guards (BWHG) Battalions (Bns) have been raised in the border States viz. Punjab (6 Bns.), Rajasthan (4 Bns.), Gujarat (2 Bns.) and one each Battalion for Meghalaya, Tripura and West Bengal to serve as an auxiliary to Border Security Force for preventing infiltration on the international border/coastal areas, guarding of Vital Areas/ Vital Points and lines of communication in the vulnerable area at the time of external aggression.