KingMakers IAS Academy logo

Daily Prelims Test – 21_January 2021

Consider the following Statements regarding National Startup Advisory Council

It is set up by the Department for Promotion of Industry and Internal Trade.

It will be chaired by Minster for External affairs.

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

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (a) 1 only

Explanation:

In NEWS:Govt sets up National Startup Advisory Council to prevent flipping of startups

  • The Central government has decided to prevent flipping of startups in order to boost the domestic ecosystem. A National Startup Advisory Council has been set up to advise the government on measures related to growth and development of Startups. This is the first time that the Government decided to include non-official members on the panel.
  • The Department for Promotion of Industry and Internal Trade (DPIIT) had set up the National Startup Advisory Council a year back to advise the government on measures needed to build an ecosystem for nurturing innovation and startups in the country.Hence statement 1 is correct
  • DPIIT in a statement said today that panel of members constituting the council will suggest measures to foster a culture of innovation among citizens and students in particular, promote innovation in all sectors and across semi-urban and rural areas, promote creation, protection and commercialization of intellectual property rights and make it easier to start, operate, grow and exit businesses by reducing regulatory compliances and costs
  • Chairman:Minister for Commerce & Industry.Hence statement 2 is incorrect
  • It will consist of the non-official members, to be nominated by Central Government, from various categories like founders of successful startups, veterans and persons capable of representing interests of incubators and accelerators etc.
  • The term of the non-official members of the Startup Advisory Council will be for a period of two years.
  • The nominees of the concerned Ministries/Departments/Organizations, not below the rank of Joint Secretary to the Government of India, will be ex-officio members of the Council.

Source: https://www.timesnownews.com/business-economy/companies/article/govt-sets-up-national-startup-advisory-council-to-prevent-flipping-of-startups/709349


Consider the following Statements regarding Domestic Systemically Important Banks (D-SIBs)

Banks whose assets exceed 10% of GDP are considered part of this group.

State Bank of India, ICICI Bank and HDFC Bank have been identified asDomestic Systemically Important Banks by the Reserve Bank of India (RBI)

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

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (b) 2 only

Explanation:

In NEWS: Too big to fail’ list: SBI, ICICI Bank, HDFC Bank remain

  • According to analysts, too big to fail is a phrase used to describe a bank or company that’s so entwined in the economy that its failure would be catastrophic.
  • The Reserve Bank of India (RBI) has retained State Bank of India, ICICI Bank and HDFC Bank as domestic systemically important banks (D-SIBs) or banks that are considered as “too big to fail”.Hence statement 2 is correct
  • The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their systemic importance scores

About Domestic Systemically Important Banks

  • D-SIBs are also called as too big to fail banks.
  • According to the RBI, some banks become systemically important due to their size, cross-jurisdictional activities, complexity and lack of substitute and interconnection.
  • Banks whose assets exceed 2% of GDP are considered part of this groupHence statement 1 is incorrect
  • If such a bank fail, there would be significant disruption to the essential services they provide to the banking system and the overall economy.
  • The government is expected to support these banks in the time of disruption. Therefore, these banks enjoy certain advantages in funding.
  • It classifies the banks under five buckets. ICICI Bank and HDFC Bank are in bucket one while SBI falls in bucket three.
  • Banks in bucket one need to maintain a 0.15% incremental tier-I capital from April 2018.Banks in bucket three have to maintain an additional 0.45%.

Source: https://indianexpress.com/article/business/banking-and-finance/too-big-to-fail-list-sbi-icici-bank-hdfc-bank-remain-7153597/


Consider the following Statements regarding Indian star tortoise

It is found only in the India

It has been listed as a vulnerable species under the International Union for Conservation of Nature Red List of Threatened Species

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

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (b) 2 only

Explanation:

In NEWS:414 Indian star tortoises seized

  • Forest Department personnel recently seized as many as 414 live endangered Indian star tortoises from Samalkot area in East Godavari district to Malkangiri district in Odisha.

About Indian Star Tortoises

  • They are protected under the Schedule-1 of the Wildlife (Protection) Act, 1972.
  • The Indian star tortoise a threatened species of tortoise found in dry areas and scrub forest in India, Pakistan and Sri Lanka.Hence statement 1 is incorrect
  • This species is quite popular in the exotic pet trade, which is the main reason it is endangered.
  • The Indian star tortoise was upgraded to CITES Appendix I in 2019 (threatened with extinction) by full consensus among all member states (of CoP18 with 183 countries), giving it the highest level of international protection from commercial trade.
  • Under the IUCN list, it is listed as vulnerable. Hence statement 2 is correct
  • They have yellow to tan heads, limbs, and tails, though the skin may be marked with dark spots or blotches.
  • Females are often markedly largerthan males. Females have shorter tails and flat plastrons.
  • Adult maleshave longer, thicker tails, and a concave plastron (which facilitates mounting and mating).

Source: https://www.thehindu.com/news/national/andhra-pradesh/414-indian-star-tortoises-seized/article33604384.ece


Recently Darfur Province seen in news for clashes between members of the Arab Rizeigat tribe and the non-Arab Massalit tribe, is located in which of the following region?

Afghanistan

Jordan

South korea

Sudan

Answer: (d) Sudan

Explanation:

In NEWS:Death toll from clashes in Sudan’s West Darfur rises to 160

  • The violence in the province grew out of a fistfight Friday in a camp for displaced people in Genena, the provincial capital, and then escalated, lasting until Sunday.
  • The clashes subsided after authorities imposed a round-the-clock curfew across West Darfur and deployed more troops and security forces to the province.
  • The clashes, between members of the Arab Rizeigat tribe and the non-Arab Massalit tribe, displaced at least 50,000 people, according to the United Nations.
  • Darfur province in Sudan remains scarred by war after a rebellion in the early 2000s was brutally suppressed.
  • The clashes pose a significant challenge to efforts by Sudan’s transitional government to end decades-long rebellions in some areas. Hence option (d) is correct
  • The bout of violence came two weeks after the U.N. Security Council ended the joint U.N.-African Union peacekeeping forces mandate in the region.

Source: https://www.thehindu.com/news/international/death-toll-from-clashes-in-sudans-west-darfur-rises-to-160/article33613437.ece


Consider the following Statements regarding Limited Liability Partnerships

It is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

All limited liability partnership is governed under the limited liability partnership act of 2008

It is implemented by the Ministry of commerce and industry.

Select the correct answer using the code given below:

  1. 1 and 3 only
  2. 2 and 3 only
  3. 1 and 2 only
  4. 1, 2 and 3

Answer: c) 1 and 2 only

Explanation

In News:To benefit small and micro units, MCA panel suggests creation of small LLPs

  • A panel appointed by the Ministry of Corporate Affairshas recommended the creation of a new category of Limited Liability Partnerships (LLPs) – ‘small LLPs’ – for the benefit of small and micro enterprises.
  • This panel, which was tasked to look at decriminalisation of LLP Act 2008, has also suggested that LLPs be permitted to issue non-convertible debentures (NCDs) to entities (body corporate and trusts) regulated either by the SEBI or RBI.
  • The panel, headed by MCA Secretary Rajesh Verma, has recommended that LLPs with capital contribution of up to ₹25 lakhand turnover not exceeding ₹40 lakh in a financial year be allowed to opt for small LLP structures.

What is an LLP?

  • LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.Hence statement 1 is correct
  • It is called a hybrid between a company and a partnership because it contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’.
  • LLPs are governed by the provisions of the Limited Liability Partnership Act, 200 The Corporate Affairs Ministry implements the Act.Hence statement 2 is correct and Hence statement 3 is incorrect

Salient features of Limited Liability Partnership Act, 2008

  • An LLP is a hybrid form of organisation having features of a partnership firm under the Partnership Act, 1932 and a company under the Companies Act, 1956 / 2013.
  • The LLP shall be a body corporate and a legal entity separate from its partners.
  • No partner would be liable on account of the independent or unauthorised actions of other partners or their misconduct.
  • The liabilities of the LLP and its partners who are found to have acted with intent to defraud creditors or for any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the LLP.
  • Personal assets of partners will not liable to attachment in case the LLP is winding up or suffering certain legal consequences of repayment of debt.
  • LLP must have at least two individuals as Designated Partners. At least one of the Designated Partners must be resident in India.
  • Rights and duties of partners of an LLP and mutual rights and duties between an LLP and its partners are governed by the LLP Agreement between the partners or between the LLP and its partners.

Source: https://www.thehindubusinessline.com/economy/to-benefit-small-and-micro-units-mcapanel-suggests-creation-of-small-llps/article33610368.ece


Consider the following Statements regarding S-400 air defense missile system

It is a mobile, surface-to-air missile system (SAM) designed by Russia.

It can engage targets at a Range of 400 km and at an altitude of up to 30 km.

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

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation:

In NEWS:Indian military personnel for Moscow soon for S-400 training

  • As India prepares to receive the first batch of S-400 long-range air defence system, the first group of Indian military specialists are scheduled to depart to undergo training courses.
  • India signed a $5.43 bn deal with Russia for five S-400 Triumf regiments despite objections from the U.S. and the threat of sanctions under Countering America’s Adversaries Through Sanctions Act

About S-400 air defence missile system:

  • The S-400 Triumf, is a mobile, surface-to-air missile system (SAM) designed by RussiaHence statement 1 is correct
  • It is the most dangerous operationally deployed modern long-range SAM (MLR SAM) in the world, considered much ahead of the US-developed Terminal High Altitude Area Defense system (THAAD).
  • The system can engage all types of aerial targets including aircraft, unmanned aerial vehicles (UAV and ballistic and cruise missiles within the range of 400km, at an altitude of up to 30km. Hence statement 2 is correct
  • The system can track 100 airborne targets and engage six of them simultaneously.
  • It represents the fourth generation of long-range Russian SAMs.
  • The S-400 Triumf air defence system integrates a multifunction radar, autonomous detection and targeting systems, anti-aircraft missile systems, launchers, and command and control centre.

Source: https://www.thehindu.com/news/national/indian-military-personnel-for-moscow-soon-for-s-400-training/article33612314.ece


Consider the following Statements regarding Special Tiger Protection Force

It will be formed based on a recommendation by the National Tiger Conservation Authority

It has been made operational in all the tiger range states in India.

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

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (a) 1 only

Explanation:

In NEWS:

  • A wild tusker stranded in Nugu reservoir, close to Bandipur, with its legs entangled in fishing nets, was rescued by Forest Department personnel
  • Forest personnel and teams from Bandipur, Sargur, and Nugu areas reached the spot along with a unit of the Special Tiger Protection Force.

About Special Tiger Protection Force’

  • Realizing the importance of ‘tiger protection’ in biodiversity conservation, the Finance Minister had announced policy initiatives on 29th February, 2008, for constituting ‘Special Tiger Protection Force’ (STPF).
  • Based on the one time grant of Rs. 50 crore provided to the National Tiger Conservation Authority (NTCA) for raising, arming and deploying a Special Tiger Protection Force, the proposal for the said force has been approved by the competent authority for 13 tiger reserves.Hence statement 1 is correct
  • The STPF has been made operational in the States of Karnataka (Bandipur), Maharashtra (Pench, Tadoba-Andhari, Nawegaon-Nagzira, Melghat), Rajasthan (Ranthambhore), Odisha (Similipal) and Assam (Kaziranga), out of 13 initially selected tiger reserves, with 60% central assistance under the ongoing Centrally Sponsored Scheme of Project Tiger (CSS-PT).Hence statement 2 is incorrect

Source: https://www.thehindu.com/news/national/karnataka/wild-elephant-caught-in-fishing-nets-rescued/article33612305.ece


What is the aim of TESS mission launched by NASA?

To measure Jupiter’s composition, gravity field, magnetic field, and polar magnetosphere.

To explore MARS‘s upper atmosphere

To search for exoplanets that could support life.

To study the asteroid Vesta and dwarf planet Ceres

Answer: (c) To search for exoplanets that could support life.

Explanation:

  • In NEWS:NASA’s TESS Mission discovers exoplanet in our galaxy older than Sun
  • The planet named TOI-561b orbiting outside our solar system is 1.5 times the size of the Earth, has more mass than Earth but almost the same density.
  • National Aeronautics and Space Administration’s (NASA) Transiting Exoplanet Survey Satellite (TESS) has discovered an exoplanet in the Milky Way galaxy. Researchers believe it is 10 billion years old, more than twice as old as our Sun.
  • The planet named TOI-561b orbiting outside our solar system is 1.5 times the size of the Earth, has more mass than Earth, but almost the same density. The planet orbits around its sun, which is located in the galactic thick disk, very quickly and completes it in about 12 hours.

About Transiting Exoplanet Survey Satellite (TESS)

  • The Transiting Exoplanet Survey Satellite (TESS) is designed to discover thousands of exoplanets in orbit around the brightest dwarf stars in the sky. Hence option (c) is correct
  • In its prime mission, a two-year survey of the solar neighborhood, TESS monitored the brightness of stars for periodic drops caused by planet transits.
  • The mission will monitor at least 200,000 stars for signs of exoplanets, ranging from Earth-sized rocky worlds to huge gas giant planets. TESS, however, will focus on stars that are 30 to 100 times brighter than those Kepler examined.
  • TESS will detect small rock-and-ice planets orbiting a diverse range of stellar types and covering a wide span of orbital periods, including rocky worlds in the habitable zones of their host stars.
  • TESS will provide prime targets for further, more detailed characterization with the James Webb Space Telescope (JWST), as well as other large ground-based and space-based telescopes of the future.
  • TESS’s legacy will be a catalog of the nearest and brightest stars hosting transiting exoplanets, which will comprise the most favorable targets for detailed investigations in the coming decades.

Source: https://indianexpress.com/article/technology/science/nasa-tess-mission-toi-561b-exoplanet-super-earth-7152191/


Consider the following Statements regarding Shadow entrepreneurship

They are individuals who manage a business that sells legitimate goods and services but they do not register their businesses.

India has the highest number of shadow entrepreneurs in the world.

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

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (a) 1 only

Explanation:

In NEWS:Rise of shadow entrepreneurship

  • The global rise of shadow entrepreneurship, not just in education but other sectors such as finance (for easy loans), the betting economy (online games) and healthcare (e-pharmacies).’
  • In a study of 68 countries, theImperial College Business School found that after Indonesia, India has the second highest rate of shadow entrepreneursHence statement 2 is incorrect

Shadow entrepreneurship:

  • Shadow entrepreneurs are individuals who manage a business that sells legitimate goods and services but they do not register their businesses. Hence statement 1 is correct
  • This means that they do not pay tax, operating in a shadow economy where business activities are performed outside the reach of government authorities.
  • Entrepreneurship could claim to be a legitimate held of academic in-quiry in all respect except one: it lacks a substantial theoretical foundation.

Why rise of shadow entrepreneurship?

  • Constraints are the “shadow” of entrepreneurship because they constantly and permanently exist before and after entrepreneurial endeavors.
  • To put it differently, entrepreneurship and constraints define each other, and constraints are closely related to entrepreneurship like a shadow by its side.
  • Constraints have the strongest link with entrepreneurship (like a shadow by its side), beating rivalry concepts.

Source: https://www.thehindu.com/opinion/op-ed/rise-of-shadow-entrepreneurship/article33594643.ece


Among the following, which were frequently mentioned in the news for the outbreak of Ebola virus recently?

Syria and Jordan

Guinea, Sierra Leone and Liberia

Philippines and Papua New Guinea

Jamaica, Haiti and Surinam

Answer: (b) Guinea, Sierra Leone and Liberia