UPSC Weekly Quiz — January 29 to February 4, 2023

The move comes as shares of Adani group companies continue to fall in the wake of accusations of stock manipulation and fraud levelled against the group by New York-based short seller Hindenburg Research.

FYI

What is additional surveillance mechanism (ASM)?

The ASM was introduced on March 26, 2018 with the intention to protect investors from market volatility and unusual changes in share price.

According to the National Stock Exchange (NSE) website, “In continuation to various surveillance measures already implemented, SEBI and Exchanges, pursuant to discussions in joint surveillance meetings, have decided that along with the aforesaid measures there shall be Additional Surveillance Measures (ASM) on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc.”

The shortlisting of securities for placing in ASM is based on criteria that are jointly decided by the Securities and Exchange Board of India (SEBI) and exchanges, covering the parameters of “high low variation, client concentration, PE, close to close price variation, market capitalisation, volume variation, delivery percentage, and number of unique PANs”, the NSE FAQs say.

Put simply, an ASM shortlisting signals to investors that the stocks have seen unusual activity. The “shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company / entity,” the FAQs say.

3 (d)

‘Green Deal Industrial Plan’ : EU

Inflation Reduction Act (IRA) : US

FYI

In a bid to support and expand its green industry, the European Union on February 1 revealed the “Green Deal Industrial Plan” that aims to cut red tape and provide massive subsidies. The move has come just a few months after the United States announced its Inflation Reduction Act (IRA), which contains billions of dollars of tax cuts for clean energy and climate change programs with incentives for US-based manufacturing.

4 (c)

All statements are correct.

FYI

Ahead of the Union Budget, President Droupadi Murmu on Tuesday addressed the joint sitting of Parliament for the first time after assuming the position in July 2022.

What is the history?

In the United Kingdom, the tradition of the monarch addressing the Parliament began in the 16th century. In the United States, President Gorge Washington addressed Congress for the first time in 1790. In India, the practice of the President addressing Parliament was established after the promulgation of the Government of India Act in 1919. This law gave the Governor-General the right of addressing the Legislative Assembly and the Council of State. The law did not have a provision for a joint address but the Governor-General did address the Assembly and the Council together on multiple occasions. Between 1947 and 1950, there was no address to the Constituent Assembly (Legislative).

After the Constitution came into force, President Rajendra Prasad addressed members of Lok Sabha and Rajya Sabha for the first time on January 31, 1950. The Constitution gives the President and the Governor the power to address a sitting of the legislature. Article 87 provides two special occasions on which the President addresses a joint sitting. The first is to address the opening session of a new legislature after a general election. The second is to address the first sitting of Parliament each year. A session of a new or continuing legislature cannot begin without fulfilling this requirement. When the Constitution came into force, the President was required to address each session of Parliament. So during the provisional Parliament in 1950, President Prasad gave an address before every session. In 1951, the First Amendment to the Constitution changed this and made the President’s address an annual affair.

5 (a)

FYI

Cancer cells can be thought of as cellular cheaters because they do not follow the rules of cooperative behavior. They mutate uncontrollably, evade cell death and take up excessive resources at the expense of the other cells. As these cheater cells replicate, cancer in the body begins to grow.

Cancer is fundamentally a problem of having multiple cells living together in one organism.

As such, it has been around since the origins of multicellular life. This means that cancer suppression mechanisms have been evolving for hundreds of millions of years to help keep would-be cancer cells in check. Cells monitor themselves for mutations and induce cell death, also known as apoptosis, when necessary.

6 (b)

Statements 2 and 3 are incorrect.

FYI

The Opposition on Thursday (February 2) joined hands to demand a probe either by a Joint Parliamentary Committee (JPC), headed by the Supreme Court or monitored by the Chief Justice of India, into the allegations of fraud and stock manipulation against the Adani Group.

What is a Joint Parliamentary Committee (JPC)?

A Joint Parliamentary Committee (JPC) is set up by the Parliament for a special purpose, like for the detailed scrutiny of a subject or Bill. It has members from both the Houses and from both the ruling parties and the opposition. It is dissolved after its term ends or its task has been completed.

A JPC is set up after one House of Parliament has passed a motion and the other has agreed to it. Members of the JPC are decided by the Parliament. The number of members can vary – there is no fixed number.

What can a JPC do?

According to an article on PRS Legislative Research, the mandate of a JPC depends on the motion constituting it. For example, “The terms of reference for the JPC on the stock market scam asked the committee to look into financial irregularities, to fix responsibility on persons and institutions for the scam, to identify regulatory loopholes and also to make suitable recommendations,” the PRS article said.

To fulfil its mandate, a JPC can scrutinise documents and summon people for questioning. It then submits a report and makes recommendations to the government.

How powerful is a JPC?

While the recommendations of a JPC have persuasive value, they are not binding on the government. The government can choose to launch further investigations based on what the JPC has said, but it can’t be forced to do so.

7 (b)

FYI

On January 31 in 1948, Mahatma Gandhi was shot dead. Gandhi had left his room at New Delhi’s Birla House for a prayer meeting, a little after 5 pm, running late. As he made his way through the crowd, a young man walked up and greeted him. Even as Gandhi replied, the man fired three bullets straight into the frail body.

The IMF releases the WEO twice every year, in April and October, apart from updating it twice — in January and July.

Here are three key takeaways from the latest update:

It expects global growth to bottom out in 2023 before starting to gather speed in 2024.

Inflation, which destabilised the global economy, is expected to have peaked in 2022 but the disinflation (the fall in inflation rate) will be slow and take all of 2023 and 2024.

India will remain the world’s fastest growing major economy both in 2023 as well as 2024.

10 (d)

FYI

The Gerber method chemical test to determine the fat content of substances like milk.

Answer to the CSAT Comprehension: (b)

Difficulty level: EASY 

FYI

Statement 1 is invalid:

Its findings cannot be relied on to substitute the judgment of a lawyer, doctor or engineer or other professionals. Finally, it might also start eliminating junior-level positions in fields like law, architecture, coding and research-oriented jobs. Historically, the use of advanced machines in the manufacturing sector reduced the number of human workers needed and hence led to a consistent reduction of jobs in that sector. 

Statement 2 is valid:

Similarly, the future of white-collar work will see a reduction in the number of humans necessary as AI will steadily replace them. And, herein lies the challenge for countries like India where unemployment is already high.

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