[Mission 2022] Insta– QUED ( Questions from Editorials ) 13 May 2022

Solution: c)

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

Solution: b)

Rotterdam Convention on Prior Informed Consent Procedures (PIC) that entered into force on 24th February, 2004, is a legally binding instrument, which was adopted on 10th September 1998 by a Conference of Plenipotentiaries in Rotterdam. India acceded to the Convention on 24.05.2006.

The Convention seeks to promote shared responsibility and cooperative efforts among State Parties in the international trade of certain hazardous chemicals in order to protect human health and the environment from potential harm. 

Each Party is required to designate a National Authority for performing the administrative functions required under the Convention. Department of Chemicals and Petrochemicals is the Designated National Authority (DNA) for industrial chemicals and Department of Agriculture and Co-operation is the DNA for pesticides.

Solution: d)

When there is a conflict of interest, a judge can withdraw from hearing a case to prevent creating a perception that she carried a bias while deciding the case. The conflict of interest can be in many ways — from holding shares in a company that is a litigant to having a prior or personal association with a party involved in the case.

The practice stems from the cardinal principle of due process of law that nobody can be a judge in her own case. Any interest or conflict of interest would be a ground to withdraw from a case since a judge has a duty to act fair. Another instance for recusal is when an appeal is filed in the Supreme Court against a judgement of a High Court that may have been delivered by the SC judge when she was in the HC.

Solution: c)

Government expenditure using this new money boosts incomes and raises private demand in the economy. Thus, it fuels inflation.

Easy monetary policy and high inflation are two of the leading causes of currency depreciation.

Solution: b)

Alternate Wetting and Drying (AWD) is a water-saving technology that farmers can apply to reduce their irrigation water consumption in rice fields without decreasing its yield.

In AWD, irrigation water is applied a few days after the disappearance of the ponded water.

Hence, the field gets alternately flooded and non-flooded. The number of days of non-flooded soil between irrigations can vary from 1 to more than 10 days depending on the number of factors such as soil type, weather, and crop growth stage.