Daily Quiz – 1st Feb 2024

Explanation:

The correct option is C 1 and 3

• The current account tracks actual transactions, such as import and export goods. The capital account tracks the net balance of international investments. In other words, it keeps track of the flow of money between a nation and its foreign partners.Any deficit in current account is met by equal financial inflows in capital account to keep the BoP in balance.
• The Balance of invisibles are that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenue

Explanation:

The correct option is D Only 1 and 3

Current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the goods and services it exports. The current account also includes net income, such as interest and dividends, as well as transfers, such as foreign aid, though these components make up only a small percentage of the current account when compared to exports and imports. The current account is essentially a calculation of a country’s foreign transactions and, along with the capital account, is a component of a country’s balance of payment.
Government can reduce substantial current account deficit by increasing exports or by decreasing imports which can be through import restrictions, quotas, or duties or by subsidizing exports. Manipulating of exchange rate for cheaper exports tends to increase balance of payments through devaluing of domestic currency. Further current account deficit can be lowered by promoting investor friendly environment. In capital account, capital inflows results from instruments and maturity which includes foreign investment, loans and banking capital.

Explanation:

• Article 153-167 in the Indian Constitution deal with the provisions related to the state executive which includes Governor, Chief Minister, Council of Ministers, and Advocate-General of State. Governor is a constitutional head of the state. He possesses executive, legislative, Judicial and financial powers.
• Statement 1 is correct: The Governor can make advances out of the contingency fund of the state to meet any unforeseen expenditure.
• Statement 2 is not correct: Money bills can be introduced in state legislature only with the prior recommendation of the Governor. There is no such provision provided in the constitution. Also, imposition of fines or other pecuniary penalties does not deem to be a money bill.
• Statement 3 is not correct: If any questions arise whether a bill is a money bill or not, the Speaker (and not Governor) is the final authority for deciding it. His decision in this regard cannot be challenged in any court of law.

Explanation:

The 1st Amendment Act, of 1951 to the Constitution was to deal with the judicial interpretations of fundamental rights and to implement land reforms. Provisions made by the first amendment act:

1. Empowered the state to make special provisions for the advancement of socially and economically backward classes.
2. Provided for the saving of laws providing for the acquisition of estates, etc.
3. Added Ninth Schedule to protect the land reform and other laws included in it from judicial review.
4. Added three more grounds of restrictions on freedom of speech and expression, viz., public order, friendly relations with foreign states, and incitement to an offense. Also, made the restrictions “reasonable” and thus, justiciable in nature.
5. Provided that state trading and nationalization of any trade or business by the state is not to be invalid on the ground of violation of the right to trade or business.

The 44th Amendment Act, 1978, made the right to property mere a legal right under Article 300A taking it out of the chapter on fundamental rights. Hence, pair 1 is not correctly matched.

Fifty-Second Amendment Act, 1985 (popularly known as Anti-Defection Law) Provided for the disqualification of members of Parliament and state legislatures on the ground of defection and added a new Tenth Schedule containing the details in this regard. But it was the 91st amendment, 2003 that provided that a member of either house of Parliament belonging to any political party who is  disqualified on the ground of defection shall also be disqualified to be appointed as a minister.

Hence, pair 2 is not correctly matched.

• Seventy-Seventh Amendment Act, 1995 provided for reservation in promotions in government jobs for SCs and STs. This amendment nullified the Supreme Court ruling with regard to reservation in promotions in the famous Mandal case of 1992. Hence, pair 3 is correctly matched.
• Ninety-First Amendment Act, 2003 made the following provisions to limit the size of the Council of Ministers, to debar defectors from holding public offices, and to strengthen the anti-defection law. The provisions are as follows:

1. The total number of ministers, including the Prime Minister, in the Central Council of Ministers shall not exceed 15% of the total strength of the Lok Sabha
2. The total number of ministers, including the Chief Minister, in the Council of Ministers in a state shall not exceed 15% of the total strength of the Legislative Assembly of that state. But, the number of ministers, including the Chief Minister, in a state shall not be less than 12. Hence, pair 4 is correctly matched.

Explanation:

Statement 1 is incorrect: The Constitution of India provides for a Finance Commission as a quasi-judicial body and is constituted by the president of India every fifth year or at such earlier time as he considers necessary.

Statement 2 is incorrect: The Finance Commission consists of a chairman and four other members to be appointed by the president. They hold office for such a period as specified by the president in his order.

Statement 3 is incorrect: The Constitution authorises the Parliament to determine the qualifications of members of the commission and the manner in which they should be selected.

Statement 4 is correct: The Constitution has not barred the commission from reappointment i.e., they are eligible for reappointment.

Explanation:

Statement 1 is incorrect: The chairman should be a person having experience in public affairs

Other statements are correct: The four other members should be selected from amongst the following:

1. A judge of high court or one qualified to be appointed as one.
2. A person who has specialised knowledge of finance and accounts of the government.
3. A person who has wide experience in financial matters and in administration.
4. A person who has special knowledge of economics.

Explanation:

Statement 1 is correct: Article 280 of the Constitution provides that the President shall constitute the Finance Commission at every five years or at such earlier time as he considers necessary.

Statement 2 is incorrect: The Constitution does not provide for qualification of chairperson and members of the commission and authorises the Parliament to determine the qualifications of members of the commission. Parliament has enacted The Finance Commission (Miscellaneous Provisions) Act, 1951 for this purpose.

Statement 3 is correct: Article 281 provides that the President causes every recommendation made by the Finance Commission with explanatory memorandum as to the action taken thereon to be laid before the parliament.