Daily Current Affairs MCQ / UPSC / IAS / 01-06-19 | PDF Downloads

MCQ 1 
As per the latest report of task force on shell companies, consider the following statements:

1. Shell Company is a corporate entity with active business operations or significant assets.
2. Beneficial ownership and the nature of business dealings are key parameters to define a shell company.
3. The compilation of database of shell companies will be done by Serious Fraud Investigation Office (SFIO).

Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) None

• The task force appointed by the government has developed a formula to define a ‘shell company’. A list of 18 key parameters, including beneficial ownership and the nature of business dealings, to determine if a company has been created to launder money or exploit regulatory arbitrage, has been created by the task force.
• A shell company has been defined as a company that lacks beneficial ownership, is inconsistent in big-ticket transactions, or does repetitive transactions with no apparent business purpose.
• Any company that transfers large sums to a related party, and makes disproportionate investments in shares of other companies or one with dubious directors could also be termed shell entities.
• Further, companies whose shares quote a high premium to their face value despite having nominal share capital too may be included in the category of shell entities.
• The Task Force recommends compilation of a database of shell companies by Serious Fraud Investigation Office (SFIO). This data base comprises of 3 lists, viz the Confirmed List, Derived List and Suspect List.
• The term ‘shell company’ has not been defined under the Income-tax Act, 1961 or under the Companies Act, 2013.
• The Serious Fraud Investigation Office (SFIO) is a statutory corporate fraud investigating agency in India. Initially, it was set up by a resolution adopted by the Government of India on 2 July 2003 and carried out investigations within the existing legal framework under section 235 to 247 of the erstwhile Companies Act, 1956. Later, Section 211 of the Companies Act, 2013, accorded the statutory status to the Serious Fraud Investigation Office (SFIO). It is under the jurisdiction of the Ministry of Corporate Affairs, Government of India. The SFIO is involved in major fraud probes and is the co-ordinating agency with the Income Tax Department and the Central Bureau of Investigation.
• It is a multi-disciplinary organization having experts from financial sector, capital market, accountancy, forensic audit, taxation, law, information technology, company law, customs and investigation. These experts have been taken from various organizations like banks, Securities and Exchange Board of India, Comptroller and Auditor General and concerned organizations and departments of the Government.
• Based on the recommendation of Naresh Chandra Committee on corporate governance (which was set up by the Government on 21 August 2002) and in the backdrop of stock market scams as also the failure of non-banking companies resulting in huge financial loss to the public, Vajpayee Government decided to set up SFIO on 9 January 2003

MCQ 2  
Commercialization of agriculture is a phenomenon associated with the British Rule in India. Which of the following factors increased the pace at which this commercialization occurred?

1. American Civil War
2. Opening of Suez Canal
3. Replacement of old sailing ships with steamships in Britain
4. Depression in British shipping industry
5. Extension of railways in India
6. Movement from barter trade to money economy in India

Select the correct answer-
(a) 1, 2, 5 and 6 only
(b) 1, 2, 3, 5 and 6 only
(c) 3 and 4 only
(d) 1, 2, 3, 4, 5 and 6

• The American Civil War dramatically reduced the economic isolation of India and brought about the Commercialisation of agriculture. The War transferred the British demand for Cotton from America to India as a result of which exports of cotton at once jumped from 5 lakh bales in 1859 to 12.6 lakh bales in 1865.
• The exports of rice, wheat and other food grains also increased. Although the British demand for Indian raw Cotton fell off after the Civil War was over, it was largely compensated by the increase in domestic demand.
• The opening of the Suez canal in 1869 was another event of worldwide importance. The opening of the canal cut the searoute between India and England by over 3000 miles and shortened the period of journey between Calcutta and London by 36 days.

• Another factor was the ‘revolution and depression’ in the British shipping industry. The revolution was caused when, from 1869 onwards, the new and more efficient steamships began to replace the old, slow moving sailing vessels, especially on long distance routes.
• The depression in British shipping was brought when, with the opening of the Suez Canal, the distance between England and the East was reduced and a good many ships were rendered surplus. This led to competition among shipping companies and a fall in freight rates.
• The most significant event was the revolution in the means of transport. The railways were rapidly extended, the route mileage increasing from 432 in 1859 to 1990 in 1881 and 25,363 in 1901. Every railway station became a Mandi or an export Centre to which traders and exporters alike-flocked.
• Another contributory factor was the introduction of money economy in the form of cash assessment of land revenue and the substitution of rent in kind by cash rents. Money economy allowed cash crops and other crops to be sold in far off markets.

MCQ 3
Consider the following statements

1. Isostasy explains that Up-raised parts of earth is balanced by Down- set parts of the Earth.
2. Sea floor spreading occurs at the mid oceanic ridge where plates diverge to form new crust.

Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both1 and 2
(d) Neither 1 nor 2

• Isostasy (Greek ísos “equal”, stásis “standstill”) is the state of gravitational equilibrium between Earth’s crust and mantle such that the crust “floats” at an elevation that depends on its thickness and density. This concept is invoked to explain how different topographic heights can exist at Earth’s surface. It also explains that the Upraised parts of earth is balanced by Down- set parts of the Earth.

• Seafloor spreading is a process that occurs at mid-ocean ridges, where new oceanic crust is formed through volcanic activity and then gradually moves away from the ridge. It was propounded by Harry Hess which validated concept of Plate tectonic.

MCQ 4
Match the following pairs: Landforms Geomorphic –Agent A. Mushroom Rocks

1. River B. Cirque
2. Ground water C. Stalagmites
3. Glacier D. Monadnocks
4. Wind Select the

correct answer
A B C D
(a) 4 3 2 1
(b) 1 2 3 4
(c) 1 4 2 3
(d) 2 3 1 4


MCQ 5
Consider the following statements about Departmentally Related Standing Committees (DRSC):

1. All bills in the parliament are referred to these committees.
2. Recommendations of the committee are binding.
3. No outside expert opinions are taken by the Committees.

Which of the above statements is/are incorrect?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

• All Bills are not referred to committees, as GST bill was passed without referring to DRSC. Recommendations of the committee are not binding.
• They can reach out to outside experts, but no internal expertise is present.
• It does not consider matters of day to day administration of the ministry.
• They are also known as India’s Mini Parliaments. 17 DRSCs were first formed in 1993.
• Currently there are 24 DRSCs and each of them have 21 members from Lok Sabha and 10 members from Rajya Sabha

MCQ 6
Which of the following are women saints of Bhakti Movement of medieval India?

1. Akka Mahadevi
2. Lal Ded
3. Lopamudra
4. Sant Soyarabai

Select the correct answer-
(a) 1, 2, 3 and 4
(b) 1, 2 and 4 only
(c) 1 and 2 only
(d) 1, 2 and 3 only

• Female Bhakti Saints
• Bhakti movement is characterized by opposition to caste system and presence of women saints.
• Some of the most prominent women saints are Andal (Alwar saint of South India), Akka Mahadevi, Lal Ded, Sant Soyarabai, Mirabai, Sahjobai, Ganga Sati, Sant Toral, Jana Bai, Bahina Bai etc.
• While Lopamudra, Apala, Ghosha etc. were female philosophers during Vedic period.

MCQ 6
Consider the following statements:

1. Formation of Congress was welcomed by Governor General Lord Dufferin in 1986.
2. The Aitchison Committee on Public Services (1886) was formed by Dufferin for reforms in Civil Services in India.
3. Dufferin ordered the invasion and final annexation of upper Burma in 1885, which led to Third Burma War.

Which of the statements is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

• In the beginning, the British Government welcomed the birth of the Indian National Congress. In 1886, Governor General Lord Dufferin gave a tea garden party for the Congress members in Calcutta.
• However in 1887, there was a frontal attack on the Congress by Dufferin, the viceroy, and Colvin, the Lt. Governor of the United Provinces. Syed Ahmed Khan and Raja Shiv Prasad of Bhinga were propped up as an antiCongress front by the government.
• Syed Ahmed Khan appealed to the educated Muslims to stay away from the Congress, although some Muslims did join the Congress. These included Badruddin Tyabji, Mir Musharraf Hussain, A. Bhimji and Hamid Ali Khan.
• The Aitchison Committee on Public Services (1886) was set up by Dufferin in order to recommend reforms in Civil services in India. It recommended— Dropping of the terms ‘covenanted’ and ‘uncovenanted’, from civil services posts.
• Classification of the civil service into Imperial Indian Civil Service (examination in England), Provincial Civil Service (examination in India) and Subordinate Civil Service (examination in India); and, Raising the age limit to 23

MCQ 7
Consider the following statements in context of currency chest and choose the correct one

1. These are branches of selected banks authorised by the RBI to stock rupee notes and coins.
2. It is a financial ratio used to estimate the solvency of a firm, or the ability of a borrowing company to repay an outstanding loan
3. It is considered to be one of the best options to manage any risk against foreign currency exchange rate volatility
4. None

• The Reserve Bank of India is planning to allow large modern currency chests to increase the service charges on cash deposited by non-chest bank branches from the existing rate of ₹5 per packet of 100 pieces to a higher rate subject to a maximum of ₹8 per packet. For this, only a currency chest (CC) that fulfills the minimum standards will be eligible to be classified as a large modern CC.
• Currency chests are branches of selected banks authorised by the RBI to stock rupee notes and coins.
• The RBI offices in various cities receive the notes from note presses and coins from the mints. These are sent to the currency chests and small coin depots from where they are distributed to bank branches.
• The RBI has set up over 4,075 currency chests all over the country. Besides these, there are around 3,746 bank branches that act as small coin depots to stock small coins.

MCQ 8
In which of the following region a practice of making Ice Stupa, a novel technique of water conservation and management has been developed?
(a) Mussoorie
(b) Ladakh
(c) Shimla
(d) Kashmir

• Over 12 villages in Ladakh have built ice Stupas this year in various villages. With the technical and material support by the Himalayan Institute of Alternatives Ladakh (HIAL).
• Ramon Magsaysay and Rolex award winner Sonam Wangchuk conceptualised this technique of water conservation.
• Global warming, ecological imbalance have caused irreparable damage on Himalayas, thus this awareness through the stamp release has been taken up.

• The Students’ Educational and Cultural Movement of Ladakh (SECMOL) Alternative Institute are making the ice stupa from artifi cial glaciers which store the wasting winter water in the form of Ice Mountains that melt and feed the farms when water is most needed by the farmers.
• This project has been initiated by His Holiness Drikung Skyabgon Chetsang Rinpochey and executed in partnership with SECMOL.
• To provide a platform for further innovations, The Himalayan Institute of Alternatives, Ladakh (HIAL) has been established which has mandate to create Ice Stupas across the Ladakh region.

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