UPSC CSE Prelims Paper 1 Practice Test - 15 - UPSC MCQ

• Recent archaeological finds suggest that copper was also probably brought from Oman, on the south-eastern tip of the Arabian Peninsula. Chemical analyses have shown that both the Omani copper and the Harappan artefacts have traces of nickel, suggesting a common origin. There are other traces of contact as well. A distinctive type of vessel, a large Harappan jar coated with a thick layer of black clay, has been found at the Omani sites. Such thick coatings prevent the percolation of liquids. We do not know what was carried in these vessels, but it is possible that the Harappans exchanged the contents of these vessels for Omani copper.

• Mesopotamian texts, datable to the third millennium BCE, refer to copper coming from a region called Magan, perhaps a name for Oman, and interestingly enough, copper found at the Mesopotamian sites also contains traces of nickel. Other archaeological finds suggestive of long-distance contacts include Harappan seals, weights, dice and beads. In this context, it is worth noting that the Mesopotamian texts mention contact with the regions named Dilmun (probably the island of Bahrain), Magan and Meluhha, possibly the Harappan region.

• They mention the products from Meluhha: carnelian, lapis lazuli, copper, gold and varieties of wood. A Mesopotamian myth says of Meluhha: “May your bird be the Haja-bird, may its call be heard in the royal palace.” Some archaeologists think that the Haja-bird was the peacock. It is likely that communication with Oman, Bahrain or Mesopotamia was by sea. The Mesopotamian texts refer to Meluhha as a land of sea-farers. Besides, depictions of ships and boats on seals have also been found.

• Abortion can now be performed until 24 weeks pregnancy. Statement 1 is not correct.

• As per the amendment women are being allowed to seek safe abortion services on grounds of contraceptive failure. Statement 2 is correct.

• In the 1570s, Akbar decided to build a new capital, Fatehpur Sikri. One of the reasons prompting this may have been that Sikri was located on the direct road to Ajmer, where the Dargah of Shaikh Muinuddin Chishti had become an important pilgrimage centre. The Mughal emperors entered into a close relationship with the Sufis of the Chishti Silsila. Akbar commissioned the construction of a white marble tomb for Shaikh Salim Chishti, next to the majestic Friday Mosque at Sikri. The heart of the Mughal Empire was its capital city, where the court assembled.

• The capital cities of the Mughals frequently shifted during the 16th and the17th centuries. Babur took over the Lodi capital of Agra, though during the 4 years of his reign, the court was frequently on the move. During the 1560s, Akbar had the Fort of Agra constructed with red sandstone, quarried from the adjoining regions. The enormous arched gateway (The Buland Darwaza) was meant to remind the visitors of the Mughal victory in Gujarat. In 1585, the capital was transferred to Lahore to bring the north-west under greater control and Akbar closely watched the frontier for 13 years.

• Shah Jahan pursued sound fiscal policies and accumulated enough money to indulge his passion for building. Building activity in monarchical cultures, as we have seen in the case of the earlier rulers, was the most visible and tangible sign of the dynastic power, wealth and prestige. In the case of the Muslim rulers, it was also considered an act of piety. In 1648, the court, army and household moved from Agra to the newly completed imperial capital, Shahjahanabad. It was a new addition to the old residential city of Delhi, with the Red Fort, the Jama Masjid, a tree-lined esplanade with bazaars (Chandni Chowk) and spacious homes for the nobility. Shah Jahan’s new city was appropriate to a more formal vision of a grand monarchy.

• The Amara-Nayaka system was a major political innovation of the Vijayanagara Empire. It is likely that many features of this system were derived from the Iqta system of the Delhi Sultanate. The Amara-Nayakas were military commanders who were given territories to govern by the Raya. They collected taxes and other dues from the peasants, crafts-persons and traders in the area.

• They retained part of the revenue for personal use and for maintaining a stipulated contingent of horses and elephants. These contingents provided the Vijayanagara kings with an effective fighting force with which they brought the entire southern peninsula under their control. Some of the revenue was also used for the maintenance of temples and irrigation works.

• The Amara-Nayakas sent tribute to the king annually and personally appeared in the royal court with gifts to express their loyalty. The kings occasionally asserted their control over them by transferring them from one place to another. However, during the course of the 17th century, many of these Nayakas established independent kingdoms. This hastened the collapse of the central imperial structure.

• Note: Amara is believed to be derived from the Sanskrit word Samara, meaning battle or war. It also resembles the Persian term Amir, meaning a high noble.

• A group of westerners, led by Madame H.P. Blavatsky (1831-1891) and Colonel M.S. Olcott, who were inspired by the Indian thought and culture, founded the Theosophical Society in New York City (United States), in 1875. In 1882, they shifted their headquarters to Adyar, on the outskirts of Madras (at that time) in India. The Society believed that a special relationship could be established between a person’s soul and the God by contemplation, prayer, revelation, etc.

• It accepted the Hindu beliefs in reincarnation and Karma, and drew inspiration from the philosophy of the Upanishads and the Samkhya, Yoga and Vedanta schools of thought. It aimed to work for universal brotherhood of humanity, without distinction of race, creed, sex, caste or colour.

• The Society also sought to investigate the unexplained laws of the nature and the powers latent in man. The Theosophical Movement came to be allied with the Hindu renaissance. It opposed child marriage and advocated the abolition of caste discrimination, uplift of outcastes and improvement in the condition of the widows.

• Dr. Ambedkar was appointed by the Bombay Legislative Council to work with the Simon Commission. In October, 1928, he argued for ‘universal adult franchise’ for both male and female alike; for provincial autonomy in the provinces and dyarchy at the Centre.

• On behalf of the Bahishkrita Hitakarini Sabha, he submitted a memorandum on the rights and safeguards he felt were required for the depressed classes. Ambedkar said that there was no link between the depressed classes and the Hindu community, and stated that the depressed classes should be regarded as a distinct and independent minority. He asserted that the depressed classes, as a minority, needed far greater political protection than any other minority in British India, because of its educational backwardness, its economically poor condition, its social enslavement, and for the reason that it suffered from certain grave political disabilities, from which no other community suffered.

• In the circumstances, Dr. Ambedkar demanded for the political protection of the depressed classes, representation on the same basis as the Mohammedan minority. He wanted reserved seats for the depressed classes if universal adult franchise was granted. In case universal franchise was not granted, Ambedkar said he would campaign for a separate electorate for the depressed classes.

• The verses ascribed to Kabir have been compiled in 3 distinct, but overlapping traditions. Kabir Bijak is preserved by the Kabirpanth (the path or sect of Kabir) in Varanasi and elsewhere in Uttar Pradesh; the Kabir Granthavali is associated with the Dadupanth in Rajasthan, and many of his compositions are found in the Adi Granth Sahib.

• Kabir’s poems have survived in several languages and dialects; and some are composed in the special language of the Nirguna poets, the Sant Bhasha. Others, known as Ulatbansi (upside-down sayings), are written in a form in which everyday meanings are inverted. These hint at the difficulties of capturing the nature of the Ultimate Reality in words: expressions such as “the lotus which blooms without flower” or the “fire raging in the ocean” convey a sense of Kabir’s mystical experiences. Also striking is the range of traditions Kabir drew on to describe the Ultimate Reality.

• These include Islam: He described the Ultimate Reality as Allah, Khuda, Hazrat and Pir. He also used terms drawn from the Vedantic traditions, Alakh (the unseen), Nirakar (formless), Brahman, Atman, etc. Other terms with mystical connotations, such as Shabda (sound) or Shunya (emptiness) were drawn from the Yogic traditions.

• As the war in Europe had undertaken a new turn, the dominant Congress leadership was again in a dilemma. Both Gandhi and Nehru strongly opposed the idea of taking advantage of Britain’s position. The Congress was ready to compromise, asking the British government to let it form an interim government during the war period, but the government was not interested. The government came up with its own offer to get the co-operation of India in the war effort. Linlithgow announced the August Offer (August, 1940), which proposed:

  • Dominion Status as the objective for India;

  • Expansion of the Viceroy’s Executive Council, which would have a majority of Indians (who would be drawn from major political parties);

  • Setting up of a Constituent Assembly after the war, where mainly Indians would decide the Constitution according to their social, economic and political conceptions, subject to fulfilment of the obligation of the government regarding defence, minority rights, treaties with the States, All India Services. For the first time, the inherent right of the Indians to frame their Constitution was recognised and the Congress demand for a Constituent Assembly was conceded.

  • And no future Constitution to be adopted without the consent of the minorities. The Muslim League welcomed the veto assurance given to the League and reiterated its position that partition was the only solution to the deadlock.

• P Waves or the primary waves are also known as longitudinal or compressional waves. It can pass through solid, liquid and gas. Hence, statement 1 is not correct.

  • P waves travel at the fastest speed through solid materials. Though these also pass through liquid and gaseous materials their speed is slowed down.

• S Waves or secondary waves are also called transverse or distortional waves. S- Wave cannot pass through liquid materials. It can only pass through solids. Hence, statement 2 is not correct.

• The Rome Statute says that “conscripting and enlisting children under the age of 15 years into armed forces or using them to participate actively in hostilities” is a war crime, although it excludes prosecution of a person who was under the age of 18 at the time of the alleged commission of a crime. This is the case in internal as well as international conflicts. The Statute does not deal with the recruitment of children between fifteen and eighteen years. Nonetheless, states may be prohibited from recruiting children between fifteen and eighteen years. These provisions are also stated under the UN Convention on Rights of Child, 1989, its Optional Protocol, Geneva Convention on Protection of Civilian Persons in Time of War, 1949, and its Additional Protocols. Hence, statement 1 is correct.

• UN Convention: The recruitment or use of children below the age of 15 as soldiers is prohibited by both the UN Convention on the Rights of the Child (CRC). Currently, 193 countries have ratified the CRC.

  • Optional Protocol to UN Convention on CRC: The Optional Protocol to the CRC on the involvement of children in armed conflict further prohibits kids under the age 18 from being compulsorily recruited into state or non-state armed forces or directly engaging in hostilities.

  • India is party to the Convention on the Rights of the Child (CRC) and acceded to Optional Protocol in November 2005. Hence, statement 2 is correct.

  • The Constitution encompasses most rights included in the CRC as Fundamental Rights and Directive Principles of State Policy.

  • Article 39 (f) states that children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment.

  • The Indian Penal Code criminalizes the recruitment or use in hostilities of persons under-18 years by state armed forces or non-state armed groups.

• Additional information: The additional protocols to the Geneva Conventions also consider recruitment of child soldiers as a war crime.

• One of the problems in an IPO has been the post-issue price decline as compared to the issue price. This often has left retail investors feeling high and dry. A solution to this problem is the introduction of the 'Green Shoe' Option in the issue. The first company to use this innovative structure was the 'Green Shoe Company' and hence, the unique name.

• Under a 'Green shoe' option, the issuing company has the option to allocate additional equity shares up to a specified amount. A 'Green shoe' option allows the underwriter of a public offer to sell additional shares to the public if the demand is high. The option is a clause in the underwriting agreement, which allows the company to sell additional shares, usually 15 per cent of the issue size (in case of IPO), to the public if the demand exceeds expectations and the stock trades above its offer price.

Hence option (d) is correct.

Japanese Quail Farming:

• The Quail called "bater" in Hindi, is a small type of bird that belongs to the Pheasant family. They were first domesticated in Japan in 1595. There are two species of quail in India; the black-breasted quail found in jungle (Coturnix Coromandelica) and the brown-coloured Japanese Quail (Coturnix Coturnix Japonica) which is bred for meat or the one used for commercial Quail production. They were introduced in India in 1974 from California. There are 45 species of quail. Although the Japanese quail is the largest species, it is much smaller than pigeon. While Indian quail weighs up to 100 gm and lays 100 eggs a year, the Japanese quail weighs up to 250 gm and lays 250 eggs a year.

• Though the Government of India is encouraging entrepreneurs to start quail farm, a government license is required to sell commercial Japanese quail considering the jungle variety of the bird, which is a protected species. The Ministry of environment and forests delegated the power to grant such license to the Department of Animal Husbandry. So, far more than 500 license has been issued in Maharashtra State alone. Hence, statement 1 is correct.

• Quail egg is roughly one-fifth the size of a chicken's egg and weigh around 10gm. The eggshells are spotted, with colors ranging from white to brown. Nutritionally, the quality of these eggs is at par with that of chicken eggs; rather they contain less cholesterol. Hence, statement 2 is incorrect.

• The proportion of yolk (the yellow inside part) to albumen (the white part), at 39:61, is higher compared to chicken eggs. Hence, statement 3 is correct.

• The use of pesticides decreases the general biodiversity in the soil. Soil quality is higher without chemicals and this allows for higher water retention, necessary for plants to grow. Nitrogen fixation, which is necessary for the growth of many large plants, is hindered by pesticides that can be found in soil. This can lead to a large decline in crop yields. Application of pesticides to crops that are in bloom can kill honeybees, which act as pollinators. This also decreases crop pollination and reproduction. Animals may be poisoned by pesticide residues that remain on food after spraying. An application of pesticides in an area can eliminate food sources that certain types of animals need, causing the animals to relocate, change their diet, or starve. Poisoning from pesticides can even make its way up the food chain; for example, birds can be harmed when they eat insects and worms that have consumed pesticides.

• There is evidence that birds are being harmed by pesticide use. Rachel Carson’s book Silent Spring discusses the loss of several bird species due to accumulation of pesticides in their tissues. Types of fungicides used in farming are only slightly toxic to birds and mammals, but may kill off earthworms, which can in turn reduce populations of the birds and mammals that feed on them. Additionally, as some pesticides come in granular form, birds and other wildlife may eat the granules, mistaking them for grains of food. A few granules of a pesticide are enough to kill a small bird. Herbicides may also endanger bird populations by reducing their habitat.

• Fish and other aquatic biota may be harmed by pesticide-contaminated water. Application of herbicides to bodies of water can cause plants to die, diminishing the water’s oxygen and suffocating the fish. Repeated exposure of some pesticides can cause physiological and behavioural changes in fish that reduce populations, such as abandonment of nests, decreased immunity to disease, and increased failure to avoid predators.

• Fertilizers are associated with greenhouse gas (GHG) emissions to the atmosphere during their production, transport and use. The use of inorganic fertilizers, and manure storage and use, contribute almost 40 per cent of agricultural GHG emissions. Better nitrogen management is one of the most effective GHG reduction strategies that farmers can adopt. On the positive side, agricultural intensification has been associated with a reduction of loss of forests which serve as carbon sinks.

• RoDTEP(Remission of Duties or Taxes on Export Products Scheme) has been introduced with an objective to neutralize the taxes and duties suffered on exported goods that are otherwise not credited or remitted or refunded in any manner and remain embedded in the export goods. This scheme provides for a rebate of all hidden Central, State, and Local duties/ taxes/levies on the goods exported which have not been refunded under any other existing scheme. This does not only include the direct cost incurred by the exporter but also the prior stage cumulative indirect taxes on goods. It is a WTO compliant Scheme and follows the global principle that the taxes/duties should not be exported, whereas, The MEIS Scheme has been under the cloud from the standpoint of WTO norms compliance. Statement 1 is correct. They should be either exempted or remitted to exporters, to make the goods competitive in the global market. The e-scrips issued under the RoDTEP scheme would be utilized for payment of Basic Customs Duty. It cannot be utilized towards payment of any other taxes like IGST, Compensation Cess, etc. upon the import of goods. Statement 2 is not correct.

• The objective of MEIS (Merchandise Exports from India Scheme) was to offset infrastructural inefficiencies and associated costs involved in the export of goods/products, which are produced/ manufactured in India, especially those having high export intensity, and employment potential and thereby enhancing India’s export competitiveness. Scrips under the MEIS scheme are issued at varied rates fixed for different countries ranging from 2 percent to 10 percent of the Free on Board (FOB) value of exports. The incentives issued as duty scrips can be used for payment of a number of duties/taxes including the customs/ excise duty/ service tax/Goods and Service Tax (GST).

• Last year, the National Health Commission of the People’s Republic of China notified WHO of one confirmed case of human infection with avian influenza A(H10N3) virus. This is the first case of human infection with avian influenza A(H10N3) virus reported globally. Hence, statement 1 is correct.

• The National Influenza Center of the Chinese Center for Disease Control and Prevention, a WHO Collaborating Centre for Reference and Research on Influenza, completed genetic sequencing and analysis of the specimen and confirmed the detection of an influenza A(H10N3) virus of avian origin.

• Currently available epidemiologic information suggests that avian influenza A(H10Nx) viruses have not acquired the ability of sustained human-to-human transmission, thus the likelihood of spread among humans is low. Hence, statement 2 is not correct.

Commercialisation of agriculture under British rule:

• Another major economic impact of the British policies in India was the introduction of a large number of commercial crops such as tea, coffee, indigo, opium, cotton, jute, sugarcane and oilseed. Different kinds of commercial crops were introduced with different intentions. Indian opium was used to balance the trade of Chinese tea with Britain in the latter’s favor. The market for opium was strictly controlled by British traders which did not leave much scope for Indian producers to reap profit. Indians were forced to produce indigo and sell it on the conditions dictated by the Britishers. Indigo was sent to England and used as a dyeing agent for cloth produced in British towns. Indigo was grown under a different system where all farmers were compelled to grow it on 3/20th part of their land. Unfortunately, cultivation of Indigo left the land infertile for some years. This made the farmers reluctant to grow it. In the tea plantations ownership changed hands quite often. The workers on these plantations worked under a lot of hardships.

• Commercialisation of agriculture further enhanced the speed of transfer of ownership of land thereby increasing the number of landless laborers. It also brought in a large number of merchants, traders and middlemen who further exploited the situation. The peasant now depended on them to sell their produce during harvest time. Because the peasants now shifted to commercial crops, food grain production went down. Hence, Statement 4 is not correct.

• Liquidity Adjustment Facility (LAF): The LAF consists of overnight as well as term repo auctions. Progressively, the Reserve Bank has increased the proportion of liquidity injected under fine-tuning variable rate repo auctions of range of tenors. The aim of term repo is to help develop the inter-bank term money market, which in turn can set market-based benchmarks for pricing of loans and deposits, and hence improve transmission of monetary policy. The Reserve Bank also conducts variable interest rate reverse repo auctions, as necessitated under the market conditions.

• Marginal Standing Facility (MSF): A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system.

• Corridor: The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate. Bank Rate: It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate is published under Section 49 of the Reserve Bank of India Act, 1934. This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes. Hence, pair 3 is not correctly matched.

• The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) is one of the largest pan-India health schemes for strengthening healthcare infrastructure. PM-ABHIM aims to fill the critical gaps in public health infrastructure, especially in critical care facilities and primary care in urban and rural areas. Hence, statement 1 is not correct.

• The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) is a Centrally sponsored Scheme. Hence, statement 2 is correct.

• Article 110 of the Constitution deals with the definition of the Money Bills. If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the Lok Sabha is final. His decision in this regard cannot be questioned in any court of law or in either House of the Parliament or even the President.

• The Constitution lays down a special procedure for the passing of the Money Bills in the Parliament. A Money Bill can only be introduced in the Lok Sabha and that too on the recommendation of the President. Every such Bill is considered to be a Government Bill and can be introduced only by a Minister. After a Money Bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha for its consideration. The Rajya Sabha has restricted powers with regard to a Money Bill. It cannot reject or amend a Money Bill. It can only make the recommendations. It must return the Bill to the Lok Sabha within 14 days, whether with or without recommendations.

• The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha. If the Lok Sabha accepts any recommendation, the Bill is then deemed to have been passed by both the Houses in the modified form. If the Lok Sabha does not accept any recommendation, the Bill is then deemed to have been passed by both the Houses in the form originally passed by the Lok Sabha without any change. If the Rajya Sabha does not return the Bill to the Lok Sabha within 14 days, the Bill is deemed to have been passed by both the Houses in the form originally passed by the Lok Sabha. Thus, the Lok Sabha has more powers than the Rajya Sabha with regard to a Money Bill. Finally, when a Money Bill is presented to the President, he may either give his assent to the Bill or withhold his assent to the Bill, but he cannot return the Bill for reconsideration of the Houses. Normally, the President gives his assent to a Money Bill, as it is introduced in the Parliament with his prior permission.

• Article 23 prohibits traffic in human beings, begar (forced labour) and other similar forms of forced labour. Any contravention of this provision shall be an offence punishable in accordance with law. This right is available to both the citizens and the non-citizens. It protects the individual not only against the State, but also against private persons. Article 23 also provides for an exception to this provision. It permits the State to impose compulsory service for public purposes, as for example, military service or social service, for which it is not bound to pay. However, in imposing such service, the State is not permitted to make any discrimination on grounds only of religion, race, caste or class.

• Prohibition of Employment of Children in Factories, etc.: Article 24 prohibits the employment of children below the age of 14 years in any factory, mine or other hazardous activities, like construction work or railway. But, it does not prohibit their employment in any harmless or innocent work.

A person, to be eligible for the election as the President, should fulfil the following qualifications:

• He should be a citizen of India.

• He should have completed 35 years of age.

• He should be qualified for the election as a member of the Lok Sabha.

• He should not hold any office of profit under the Union Government or any State Government or any local authority or any other public authority. A sitting President or Vice-President of the Union, the Governor of any state and a Minister of the Union or any State is not deemed to hold any office of profit and hence, qualified as a Presidential candidate.

• Further, the nomination of a candidate for the election to the office of the President must be subscribed by at least 50 electors as proposers and 50 electors as seconders.

• The Constitution of India (Article 148) provides for an independent office of the Comptroller and Auditor General of India (CAG). He is appointed by the President of India by a warrant under his hand and seal. He holds the office for a period of 6 years or upto the age of 65 years, whichever is earlier. He can resign any time from his office, by addressing the resignation letter to the President. He can also be removed by the President on the same grounds and in the same manner as a judge of the Supreme Court.

• The Constitution has made the following provisions to safeguard and ensure the independence of the CAG:

1. He is provided with the security of tenure. He can be removed by the President only in accordance with the procedure mentioned in the Constitution. Thus, he does not hold his office till the pleasure of the President, though he is appointed by him.

2. He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.

3. His salary and other service conditions are determined by the Parliament. His salary is equal to that of a judge of the Supreme Court.

4. Neither his salary nor his rights in respect of leave of absence, pension or age of retirement can be altered to his disadvantage after his appointment.

5. The administrative expenses of the office of the CAG, including all salaries, allowances and pensions of the persons serving in that office, are charged upon the Consolidated Fund of India. Thus, they are not subject to the Vote of the Parliament. Further, no Minister can represent the CAG in the Parliament (both the Houses) and no Minister can be called upon to take any responsibility for any actions done by him.

Generally, standards in ‘Organic Farming’ are designed to encourage the use of natural substances. It prohibits the use of synthetic pesticides, antibiotics, synthetic fertilizers, genetically modified organisms and growth hormones.

• The Competition Act, 2002, was enacted by replacing the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, on the recommendations of Mr. S. V. S. Raghavan Committee.

Mandate:

• To check anti-competitive agreements;

• To prohibit abuse of dominance by strong companies over weak organisations; and

• To regulate ‘mergers’ and ‘acquisitions’, or ‘takeovers’ taking place in the market.

Tenure:

The Chairperson and the members shall hold office as such for

• a term of five years;

• till he/she attains the age of 65 years; the Chairperson and the members shall be eligible for re-appointment.

The Chairperson and other members of the Commission shall be appointed by the Central Government from a panel of names recommended by a Selection Committee, consisting of –

• the Chief Justice of India or his nominee – Chairperson;

• the Secretary in the Ministry of Corporate Affairs – Member;

• the Secretary in the Ministry of Law and Justice – Member;

• two experts of repute who have special knowledge of, and professional experience in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs or competition matters, including competition law and policy – Members.

• Article 263 of the Constitution envisages the establishment of an institutional mechanism to facilitate the co-ordination of policies and their implementation between the Union and the State Governments.

• The Inter State Council is a constitutional body set up on the basis of the provisions in Article 263 of the Constitution of India, by a Presidential Order in 1990, on the recommendation of the Sarkaria Commission. (Formed during the regime of PM V. P. Singh).

• Note: The National Commission to Review the Working of the Constitution (NCRWC), also known as Justice Manepalli Narayana Rao Venkatachaliah Commission, was set up by a resolution of the NDA Government of India, led by Atal Bihari Vajpayee, in 2000, for suggesting possible amendments to the Constitution of India.

• The Supreme Court, under Article 136, enjoys the power of granting special leave to appeal from any judgement, decree, order or sentence in any case or matter passed by any Court or Tribunal, except Court Martial.

• Under the Arbitration and Conciliation Act, 1996, International Commercial Arbitration can also be initiated in the Supreme Court. Under Article 143, the President can refer to the Supreme Court either a question of law or a question of fact, provided that it is of public importance. However, it is not compulsory for the Court to give its advice.

The legal framework for the administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999.

Under the FEMA, which came into force with effect from 1st June 2000, all transactions involving foreign exchange have been classified either as capital or current account transactions. Hence, statement 1 is correct.

Resident Indians:

• A 'person resident in India' is defined in Section 2(v) of FEMA, 1999 as: Barring few exceptions, a person residing in India for more than 182 days during the course of the preceding financial year. Hence, statement 2 is correct. Any person or body corporate registered or incorporated in India.

• An office, branch or agency in India owned or controlled by a person resident outside India.

• An office, branch or agency outside India owned or controlled by a person resident in India.