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Daily Prelims Test – 04_December 2020

Consider the following statements regarding Municipal bonds

  • Municipal bonds are bonds issued by urban local bodies to raise money for financing specific projects specifically infrastructure projects
  • Bangalore Municipal Corporation was the first ULB to issue Municipal Bond in India

Which of the statement(s) given above is/are correct?

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation:

In NEWS: Lucknow Municipal Corporation bonds list on BSE

  • Bonds of Lucknow Municipal Corporation (LMC), the first Municipal Bond from the north Indian states listed on BSE Wednesday. LMC raised Rs 200 crore through Municipal Bonds on a private placement basis using the BSE bond platform. These bonds have a tenure of 10 years and will fetch 8.5% interest per annum. The bond issue proceeds will be used for infrastructure projects in Lucknow.

What is Municipal bonds?

  • Municipal bonds are bonds issued by urban local bodies- municipal bodies and municipal corporates (entities owned by municipal bodies) to raise money for financing specific projects specifically infrastructure project These bonds are attracting attention as the ULBs urgently need money to finance infrastructural expenditure. Especially, smart cities and other urban development projects necessitates them to create finance. Hence statement 1 is correct
  • Municipal bonds are there in India from 1997 onwards. Bangalore Municipal Corporation was the first ULB to issue Municipal Bond in India in 1997. Hence statement 2 is correct
  • In 2015, SEBI made fresh guidelines for the issue of municipal bonds for enabling the ULBs to mobilise money.
  • Municipal bonds in India has tax-free status if they conform to certain rules and their interest rates will be market-linked. Both pubic issue and private issue can be adopted for municipal bonds.
  • SEBI allowed urban local bodies to raise money through the issue of revenue bonds as well.

Source: https://economictimes.indiatimes.com/markets/bonds/lucknow-municipal-corporation-bonds-list-on-bse/articleshow/79523026.cms


Consider the following statements regarding International Association of Insurance Supervisors

  • It is the international standard-setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector
  • It is headquartered at GIFT City, Gandhinagar in Gujarat.

Which of the statement(s) given above is/are correct?

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (a) 1 only

Explanation:

In NEWS: International Financial Services Centers Authority gets membership of International Association of Insurance Supervisors

  • With this membership IFSCA would have access to IAIS’s global network and would be able to exchange ideas and information with other global regulators
  • The IFSCA would have access to IAIS’s global network and would be able to exchange ideas and information with other global regulators.
  • It would help in developing a vibrant global Insurance hub in IFSC at GIFT City.
  • The membership would go a long way in connecting IFSC with global insurance institutions and would facilitate IFSCA in joint development of global insurance business with other global centers.

About International Association of Insurance Supervisors (IAIS)

  • The IAIS is a voluntary membership organization of insurance supervisors and regulators from more than 200 jurisdictions, constituting 97% of the world’s insurance premiums.
  • It is the international standard-setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector. Hence statement 1 is correct
  • The IAIS mission is to promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders and to contribute to global financial stability.
  • It is established in 1994 with its headquarter in Switzerland. Hence statement 2 is incorrect
  • The leading members of IAIS are: United Kingdom-Financial Conduct Authority (FCA), USA-National Association of Insurance Commissioners (NIAC) and Federal Insurance Office of the Insurance of the United States Department of Treasury (FIO), Singapore-Monetary Authority of Singapore (MAS) and India-Insurance Regulatory and Development Authority of India (IRDAI)

Source: https://www.thehindubusinessline.com/economy/ifsca-gets-membership-of-international-association-of-insurance-supervisors/article33233698.ece


Consider the following statements regarding Centralized Monitoring System

  • It is a centralized telephone interception provisioning system installed by the Centre for Development of Telematics
  • In India, Lawful interception and monitoring is governed by the Indian Telegraph Act, 1885.

Which of the statement(s) given above is/are correct?

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation:

In NEWS: Delhi HC seeks Centre’s stand on PIL against NETRA, NATGRID surveillance systems

  • The Delhi High Court Wednesday sought the Centre’s response on a PIL which claimed that citizens’ right to privacy was being “endangered” by surveillance programmes like the Centralised Monitoring System (CMS), Network Traffic Analysis (NETRA) and National Intelligence Grid (NATGRID).
  • The plea by the two societies, Centre for Public Interest Litigation (CPIL) and Software Freedom Law Centre (SFLC), has claimed that these surveillance systems allow central and state law enforcement agencies to intercept and monitor all telecommunications in bulk which is an infringement of the fundamental right to privacy of individuals.

About Centralised Monitoring System (CMS)

  • CMS is a centralized telephone interception provisioning system installed by the Centre for Development of Telematics (C-DOT). Hence statement 1 is correct
  • It is operated by Telecom Enforcement Resource and Monitoring (TERM) Cells.
  • CMS was set up to automate the process of government-approved Lawful Interception & Monitoring of telecommunications.
  • Lawful interception and monitoring is governed by the Section 5(2) of Indian Telegraph Act, 1885. Hence statement 2 is correct
  • The CMS will enhance the privacy of citizens, because it will no longer be necessary to take authorisation from the nodal officer of the Telecom Service Providers (TSPs) – who comes to know whose and which phone is being intercepted.

Source: https://economictimes.indiatimes.com/news/politics-and-nation/high-court-seeks-centres-stand-on-pil-against-netra-natgrid-surveillance-systems/articleshow/79525462.cms


Consider the following statements regarding Inland Waterway Authority of India

  • It primarily undertakes projects for development and maintenance of IWT infrastructure on national waterways through grants received from the Ministry of Shipping.
  • It is headquartered at Varnasi

Which of the statement(s) given above is/are correct?

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (a) 1 only

Explanation:

In NEWS: IWAI eases tender terms for privatising 3 river terminals NW1

  • The Inland Waterways Authority of India (IWAI) recently eased the tender terms for privatising the multi-modal cargo terminals at Varanasi, Haldia and Sahibganj on National Waterway 1.
  • The contracts will be awarded to the entity quoting the highest royalty per metric ton of riverine cargo handled at each of these terminals to IWAI.
  • Additionally, for non-riverine cargo handled at the terminals, the private operator will have to pay royalty calculated on the royalty quoted for riverine cargo plus a premium of 20 per cent.
  • The IWAI has set cargo and vessel related charges at these terminals.

About Inland Waterway Authority of India

  • The Inland Waterways Authority of India (IWAI) came into existence on 27th October 1986 for development and regulation of inland waterways for shipping and navigation.
  • The Authority primarily undertakes projects for development and maintenance of IWT infrastructure on national waterways through grant received from Ministry of Shipping. Hence statement 1 is correct
  • The head office of the Authority is at Noida. Hence statement 2 is incorrect
  • The Authority also has its regional offices at Patna, Kolkata, Guwahati and Kochi and sub-offices at Allahabad, Varanasi, Farakka, Sahibganj, Haldia, Swroopganj, Hemnagar, Dibrugarh, Dhubri, Silchar, Kollam, Bhubaneshwar and Vijayawada.

Source: https://www.thehindubusinessline.com/economy/logistics/iwai-eases-tender-terms-for-privatising-3-river-terminals-nw1/article33223481.ece


“Natanz” is a strategic place which frequently appears in the news, is in?

  • Russia
  • United Arab Emirates
  • Iran
  • United States of America

Answer: c) Iran

Explanation:

In News: Iran moves to step up nuclear enrichment

  • Natanz, an Underground Nuclear Facility of Iran used for enriching uranium.
  • Located in Iran’s central Isfahan province in Tehran, Natanz hosts the country’s main uranium enrichment facility. Hence option (c) is the correct answer.
  • It is known as the first Pilot Fuel Enrichment Plant of Iran.
  • It is among the sites monitored by the International Atomic Energy Agency (IAEA) after Iran’s 2015 nuclear deal with world powerse. the USA ,UK, France, China, Russia, and Germany.

Source: https://www.thehindu.com/news/international/iran-moves-to-step-up-nuclear-enrichment/article33242986.ece


Consider the following statements

  • The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption.
  • Excise duty on liquor, stamp duty and electricity taxes are all exempted from GST.
  • Lottery, gambling and betting are also exempted from the GST.

Which of the above statement(s) is/are correct?

  • 1 only
  • 1 and 3 only
  • 1 and 2 only
  • 1, 2 and 3

Answer: c) 1 and 2 only

Explanation:

In NEWS: Lottery, gambling and betting taxable under GST Act: SC

  • The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. Hence statement 1 is correct.
  • This got an approval in 2016 and was renumbered in the statute by Rajya Sabha as The Constitution (101st Amendment) Act, 2016. Its provisions:
  • Central GST to cover Excise duty, Service tax etc, State GST to cover VAT, luxury tax etc.
  • Integrated GST to cover inter-state trade. IGST per se is not a tax but a system to coordinate state and union taxes.
  • Article 246A – States have power to tax goods and services.
  • Exemptions: Custom duty will be still collected along with the levy of IGST on imported goods.
    • Petroleum and tobacco products are currently exempted.
    • Excise duty on liquor, stamp duty and electricity taxes are also exempted. Hence statement 2 is correct.
  • As per supreme court order,Lottery, gambling and betting are taxable under Goods and Services Act. hence statement 3 is incorrect.

Source: https://www.thehindu.com/news/national/lottery-gambling-betting-taxable-under-gst-act-sc/article33244591.ece#:~:text=The%20Supreme%20Court%20on%20Thursday,and%20Services%20Tax%20Act%2C%202017.


Consider the following statements

  • China operationalized its first hydropower project at zangmu in Tibet in 2015.
  • It is the first ever Chinese downstream hydropower project on the lower reaches of the river Brahmaputra
  • The project will play a significant role in realizing China’s goal of reaching a carbon emissions peak before 2030 and carbon neutrality till 2060.

Which of the statement(s) given above is/are correct?

  • 1 and 2 only
  • 2 and 3 only
  • 1, 2 and 3
  • 1 and 3 only

Answer: (c) 1, 2 and 3

Explanation:

In NEWS: Carefully monitoring brahmaputra developments

  • China in 2015 operationalised its first hydropower project at zangmu in Tibet, and is constructing three other dams at Dagu, Jixeu and Jiacha, these are run of the river dams on the upper and middle reaches. Hence statement 1 is correct.
  • Chinese hydropower company to construct the first ever downstream hydropower project on the lower reaches of the river Brahmaputra. Hence statement 2 is correct.
  • The project will play a significant role in realising China’s goal of reaching a carbon emissions peak before 2030 and carbon neutrality till 2060. Hence statement 3 is correct.

Source: https://www.thehindu.com/news/national/brahmaputra-dam-india-is-monitoring-developments-wishes-to-remain-engaged-with-china/article33241811.ece


With reference to Nisar gram, consider the following statements

  • It is an autonomous body under the Ministry of Ayush
  • The institution was called All India Nature Cure Foundation and was set up under Gandhi Ji’s leadership in 1945 at the same premises where the NIN presently functions.

Select the correct answer using the code given below

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation:

In NEWS: Ministry of AYUSH to develop Nisarg Gram campus at Pune as the 21st Century abode of Naturopathy

  • Invoking recollections of Mahatma Gandhi’s famous Nature Cure campaign of 1946 at the “Nisarg Upchar” Ashram in Uruli Kanchan village near Pune, the upcoming new campus of National Institute of Naturopathy (NIN), Pune will be called “Nisarg Gram”.
  • Located at a distance of 15 Km from NIN’s present premises at Bapu Bhavan, the new Institution will be future-ready, with many novelties and innovations incorporated in the project per se and the curriculum of the Naturopathy courses.
  • National Institute of Naturopathy, Pune is an Autonomous Body under the Ministry of AYUSH. Hence Statement 1 is incorrect
  • The institution was called All India Nature Cure Foundation and was set up under Gandhi Ji’s leadership in 1945 at the same premises where the NIN presently functions. Hence Statement 2 is correct
  • It was subsequently taken over by the Central Government and structured into the present National Institute of Naturopathy.

Source https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1678010


Recently, the term Nuclear Magnetic Resonance (NMR) Test is seen in news, is related to

  • Detect objects that range from the mass of a planet to the mass of a star
  • Detect Coronavirus in schools, restaurants and other public places.
  • Test that detects and measures antibodies in blood.
  • Test that can ascertain the composition of a product at the molecular level.

Answer: (d) Test that can ascertain the composition of a product at the molecular level.

Explanation:

In NEWS: CSE alleges Dabur, Zandu, Baidyanath among honey brands failed quality test; Dabur rejects report

  • In a major expose on rampant adulteration of packaged honey sold in the Indian market, 10 of the 13 brands flunked the stringent Nuclear Magnetic Resonance (NMR) test considered as the global gold standard for honey as part of an investigation conducted by a Delhi-based NGO Centre for Science and Environment (CSE).
  • Indian companies in the business of honey are importing synthetic sugar syrups from China for adulterating with honey.
  • CSE tracked down Chinese trade portals which were advertising fructose syrup that can bypass tests to check adulteration.
  • Chinese companies informed CSE that even if 50-80% of the honey is adulterated with syrup, they would pass all stipulated tests as per Indian standards.
  • Adulteration also destroyed the livelihoods of bee-keepers who found it unprofitable to make pure honey because sugar-syrup honey was often available at half the price.

About Nuclear Magnetic Resonance (NMR) Test

  • It is a test that can ascertain the composition of a product at the molecular level. Hence option (d) is correct
  • It is an analytical chemistry technique used in quality control and research for determining the content and purity of a sample as well as its molecular structure.
  • The NMR test is not required by Indian law for honey that is being marketed locally but is needed for export.
  • Recent NMR tests, while being able to detect additives, were not able to detect the quantity of adulteration.

Source: https://www.businesstoday.in/current/corporate/patanjali-zandu-among-10-major-honey-brands-failing-global-quality-test-alleges-cse-dabur-rejects-report/story/423673.html


Which one of the following categories of Fundamental Rights incorporate protection against untouchability as a form of discrimination?

  • Right against Exploitation
  • Right to Freedom
  • Right to Constitutional Remedies
  • Right to Equality

Answer: (d) Right to Equality

Explanation:

Right to Equality (Article 14 -18) protects the citizens against any discrimination by the State on the basis of religion, caste, race, sex, or place of birth. Article 14 says that all citizens enjoy equal privileges and opportunities. Article 15 provides that the State shall not discriminate against any citizen on grounds only of religion, race, caste, sex or place of birth. Article 16 says that no citizen can be discriminated against or be ineligible for any employment or office under the State on grounds of only religion, race, caste, sex, descent, place of birth or residence. Article 17 abolishes ‘untouchability’ and forbids its practise in any form. Article 18 abolishes all titles national or foreign which create artificial distinctions in social status amongst the people. Hence option (d) is correct


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