UPSC Preliminary MCQ's Part 01

Consider the following statements with regard to the Jurisdiction of Supreme Court

1. In case of federal disputes, the Supreme Court has exclusive original jurisdiction.

2. In case of Writs, jurisdiction of the Supreme Court is neither original nor exclusive

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct Answer: A

Explanation

1st statement is correct. In the case of federal disputes, the Supreme Court has exclusive original jurisdiction. Exclusive means, no other court can decide such disputes and original means, the power to hear such disputes in the first instance, not by way of appeal.

2nd statement is wrong. The Supreme Court is empowered to issue Writs for the enforcement of the fundamental rights of an aggrieved citizen. In this regard, the Supreme Court has original jurisdiction in the sense that an aggrieved citizen can directly go to the Supreme Court, not necessarily by way of appeal. However, the writ jurisdiction of the Supreme Court is not exclusive. The high courts are also empowered to issue writs for the enforcement of the

Fundamental Rights.

Tikdam: By thinking a little more about Writs, you can easily solve this question. You must be knowing that in the case of violation of Fundamental rights we can directly go to Supreme Court. And Supreme Court can issue writs such as habeas corpus, mandamus, prohibition, quowarrento and certiorari for the enforcement of the fundamental rights. That means we can directly approach the Supreme Court, so it has Original Jurisdiction.

Consider the following statements regarding Governor

1. 7th Constitutional Amendment Act of 1956 facilitated the appointment of the same person as a governor for two or more states.

2. While appointing the governor, the president is constitutionally required to consult the chief minister of the state concerned

3. The oath of office to the governor is administered by the President of India

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

a) 1 and 3 only

b) 1 and 2 only

c) 2 and 3 only

d) only 1

Correct Answer: D

Explanation

2nd statement is wrong, For the President to consult the Chief Minister of the concerned state, before the appointment of a Governor is not a constitutional requirement. But a healthy convention grew up that the Chief Minister was consulted. But in the case of appointment of several Governors, this convention has not been obeyed.

3rd statement is wrong. The oath of office to the governor is administered by the chief justice of the concerned state high court and in his absence, the senior-most judge of that court available.

Which of the following matters comes under the Executive powers of the Governor?

1.He can make rules for more convenient transaction of the business of a state government and for the allocation among the ministers of the said business.

2. He can seek any information relating to the administration of the affairs of the state and proposals for legislation from the chief minister.

3. He can summon or prorogue the state legislature and dissolve the state legislative assembly. 
Which of the statement(s) given above is/are correct?

a) 3 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2 and 3

Correct Answer: B

Explanation

3rd statement is wrong. Summon or prorogue the state legislature and dissolve the state legislative assembly comes under the legislative powers and functions of the Governor.

Please go through different Executive and Legislative powers of the Governor.

Laxmikanth Page no: 26.5

In which of the following cases Governor has Constitutional discretion?

1. Recommendation for the imposition of the President’s Rule in the state.

2. Dismissal of the council of ministers when it cannot prove the confidence of the state legislative assembly

3. Reservation of a bill for the consideration of the President.

Select the correct answer using the code given below.

a) 1 only

b) 1 and 3 only

c) 1, 2 and 3 only

d) 2 and 3 only

Correct Answer: B

Explanation

2nd statement is wrong. Dismissal of the council of ministers when it cannot prove the confidence of the state legislative assembly comes under the Situational discretion and not constitutional discretion.

The governor has constitutional discretion in the following cases: 
1. Reservation of a bill for the consideration of the President. 
2. Recommendation for the imposition of the President’s Rule in

the state. 
3. While exercising his functions as the administrator of an adjoining union territory (in case of additional charge).

 4. Determining the amount payable by the Government of Assam, Meghalaya, Tripura and Mizoram to an autonomous Tribal District Council as royalty accruing from licenses for mineral exploration 
5. Seeking information from the chief minister with regard to the administrative and legislative matters of the state.

Governor, has situational discretion in the following cases: 
1. Appointment of chief minister when no party has a clear-cut majority in the state legislative assembly or when the chief minister in office dies suddenly and there is no obvious successor. 
2. Dismissal of the council of ministers when it cannot prove the confidence of the state legislative assembly. 
3. Dissolution of the state legislative assembly if the council of ministers has lost its majority.

With reference to High court, consider the following statements

1. The territorial jurisdiction of a high court is co-terminus with the territory of a state 
2. The Constitution does not specify the strength of a high court and leaves it to the discretion of the Chief justice of that High Court

3. The chief justice of High Court is appointed by the President after consultation with the chief justice of India and the Chief-minister of the state concerned.

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

a) 1 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2 and 3

Correct Answer: A

Explanation

1st statement is correct. The territorial jurisdiction of a high court is co-terminus with the territory of a state. Similarly, the territorial jurisdiction of a common high court is co-terminus with the territories of the concerned states and union territory.

2nd statement is wrong. The Constitution does not specify the strength of a high court and leaves it to the discretion of the president. Accordingly, the President determines the strength

of a high court from time to time depending upon its workload.

3rd statement is wrong. The chief justice is appointed by the President after consultation with the chief justice of India and the governor of the state concerned.

Consider the following pairs:

Committee Field of study

1. M. Narasimham Committee : For Banking Sector Reforms

2. Rattan P Watal Committee : To boost digital payment system in India

3. Shankar Acharya Committee : Feasibility of having a new Fiscal Year

Which of the pairs given above is/are correctly matched?

a) 1 and 3 Only

b) 2 and 3 Only

c) 1, 2, and 3

d) 1 and 2 Only

Correct Answer: C

Explanation

All are CORRECTLY matched. Shankar Acharya Committee: It dealt with the feasibility of having a new Fiscal Year. Currently, India follows the April-March fiscal year and all macroeconomic and company data. However, most countries follow a January-December fiscal year.

Consider the following statements regarding 'Ease of Doing Business':

1. The ease of doing business index is an index created by the IMF.

2. A nation's ranking on the index is based on the average of 10 subindices.

3. In 2017 India is ranked at 100th position in the list of 190 countries.

Which of the statements given above is/are correct?

a) 1 Only

b) 2 and 3 Only

c) 1 and 3 Only

d) 1 and 2 Only

Correct Answer: B

Explanation

The ease of doing business index is an index created by the World Bank Group (not by the IMF).

Source: http://www.businesstoday.in/current/economy-politics/ease-of-doing-business-rankingsindia-

rank-world-bank-100/story/262976.html

Tikdam: Statement 1 is INCORRECT. The ease of doing business index is an index created by the World Bank Group (not by the IMF). The moment you eliminate statement 1, you get your

answer, i.e, b).

Consider the following statements regarding the Financial Stability and Development Council

(FSDC):

1. It is chaired by the Prime Minister of India.

2. Heads of the financial sector regulatory authorities i.e, RBI, SEBI, IRDA, PFRDA etc are its

members.

3. Act as an apex level forum to strengthen and institutionalize the mechanism for maintaining financial stability.

Which of the statements given above is/are correct?

a) 1 Only

b) 2 and 3 Only

c) 1 and 3 Only

d) 1 and 2 Only

Correct Answer: B

Explanation

The Chairman of the FSDC is the Finance Minister of India and its members include the heads of the financial sector regulatory authorities (i.e, SEBI, IRDA, RBI, PFRDA and FMC) , Finance

Secretary and/or Secretary, Department of Economic Affairs (Ministry of Finance), Secretary, (Department of Financial Services, Ministry of Finance) and the Chief Economic Adviser. Other functions of FSDC are: Focus on financial literacy and financial inclusion. Monitor macro-prudential supervision of the economy. Assess the functioning of the large financial conglomerates.

Source: http://www.thehindu.com/business/Economy/fsdc-review-challenges-facing indianeconomy- in-17th-meeting/article19541370.ece Tikdam: It is easy to guess that such a body will be headed by the Finance Minister, hence statement 1 becomes incorrect. Eliminating answer choice 1, we are left with only answer choice b).

Which of the following statements is/are correct regarding the Monetary Policy Committee:

1. The Monetary Policy Committee (MPC) is a committee of the central bank — Reserve Bank of India, headed by its Governor.

2. It is a statutory body.

3. It is a 6 member body entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the target level.

Select the correct option using the code given below:

a) 1, 2 and 3

b) 3 Only

c) 1 Only

d) 1 and 3 Only

Correct Answer: A

Explanation

The Monetary Policy Committee of India is a committee of the Reserve Bank of India that is responsible for fixing the benchmark interest rate in India. The meetings of the Monetary Policy

Committee are held at least 4 times a year and it publishes its decisions after each such meeting. The committee comprises of six members - three officials of the Reserve Bank of India and three external members nominated by the Government of India. They need to observe a silent period seven days before and after the rate decision for utmost confidentiality. The Governor of Reserve Bank of India is the chairperson ex officio of the committee. Decisions are taken by majority with the Governor having the casting vote in case of a tie. The current mandate of the committee is to maintain 4% annual inflation until March 31, 2021 with an upper tolerance of 6% and a lower tolerance of 2%. 

Composition of MPC: Governor of RBI (ex officio Chairperson), Deputy Governor of RBI, in charge of Monetary Policy (Member), One officer of RBI (Member) and three members appointed by Central Government as members. Each member will have one vote and the governor gets a casting vote in case of tie. It was set up by amending the RBI Act to provide for a statutory and institutionalised framework for MPC. 

Source: http://www.thehindubusinessline.com/opinion/columns/slate/all-you-wanted-to-knowabout-

monetary-policy-committee/article8807786.ece

Tikdam: Since Monetary Policy Committee has essentially to do with the RBI, with must have amended the RBI Act, 1934, hence a statutory body. Only one answer choice contains statement

2) Therefore answer choice a) is the correct answer.

With growing importance of digital payments post demonetization, NPCI has often been in news. Consider the following statements regarding NPCI:

1. NPCI is the umbrella organization for all retail payments system in India.

2. It has been promoted by the Reserve Bank of India.

3. It is owned by a consortium of major banks.

Which of the statements given above is/are correct?

a) 1, 2 and 3

b) 1 and 2 Only

c) 1 Only

d) 1 and 3 Only

Correct Answer: A

Explanation

National Payments Corporation of India is the umbrella organisation for all retail payment systems in India, which aims to allow all Indian citizens to have unrestricted access to epayment

services. Founded in 2008, NPCI is a not-for-profit organisation registered under section 8 of the Companies Act 2013) The organisation is owned by a consortium of major banks, and has been promoted by the country’s central bank, the Reserve Bank of India. Its recent work of developing Unified Payments Interface aims to move India to a cashless society with only digital transactions. It has successfully completed the development of a domestic card payment network called RuPay, reducing the dependency on international card schemes.

Source: https://economictimes.indiatimes.com/industry/banking/finance/npci-hits-1)billiontransaction-mark-in-july/articleshow/59915334.cms