[Mission 2024] QUED ( Questions from Editorials ) 28 September 2023

Solution: c)

Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems, according to the RBI.

Interoperability of UPI with the digital rupee means all UPI QR codes are compatible with CBDC apps. It will allow a digital rupee user to make payments for their daily needs, such as groceries and medicines, by scanning any UPI QR codes at any merchant outlet.

Even merchants are not required to keep a separate QR code to accept the digital rupee payments. They can accept CBDC payments on their existing QR code.

A Quick Response (QR) code consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera. It contains information about the item to which it is attached, according to the National Payments Corporation of India (NPCI). QR code is an alternate contactless channel of payments. It allows merchants or businesses to accept payments from their customers directly into their bank accounts.

Source

Solution: b)

Statement 3 is incorrect.

Settlement is a two-way process which involves the transfer of funds and securities on the settlement date. A trade settlement is said to be complete once purchased securities of a listed company are delivered to the buyer and the seller gets the money.

The current cycle of T+1 means trade-related settlements happen within a day, or 24 hours of the actual transactions. The migration to the T+1 cycle came into effect in January this year. India became the second country in the world to start the T+1 settlement cycle in top-listed securities after China, bringing in operational efficiency, faster fund remittances, share delivery, and ease for stock market participants.

Source

Solution: d)

Section 123 of the RPA, 1951 defines ‘corrupt practices’ to include bribery, undue influence, false information, and promotion or attempted promotion of “feelings of enmity or hatred between different classes of the citizens of India on grounds of religion, race, caste, community, or language” by a candidate for the furtherance of his prospects in the election.

Section 123 (2) deals with ‘undue influence’ which it defines as “any direct or indirect interference or attempt to interfere on the part of the candidate or his agent, or of any other person, with the consent of the candidate or his election agent, with the free exercise of any electoral right.”

The expression “office of profit” has not been defined in the Constitution or in the Representation of the People Act, 1951.

Solution: b)

Statement 3 is incorrect.

A Gold ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold price. They are passive investment instruments that are based on gold prices and invest in gold bullion.

One Gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity. Gold ETFs combine the flexibility of stock investment and the simplicity of gold investments.

Gold ETFs are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. (BSE) like a stock of any company. Gold ETFs trade on the cash segment of BSE & NSE, like any other company stock, and can be bought and sold continuously at market prices.

Buying Gold ETFs means you are purchasing gold in an electronic form. You can buy and sell gold ETFs just as you would trade in stocks. When you actually redeem Gold ETF, you don’t get physical gold, but receive the cash equivalent. Trading of gold ETFs takes place through a dematerialised account (Demat) and a broker, which makes it an extremely convenient way of electronically investing in gold.

Because of its direct gold pricing, there is a complete transparency on the holdings of a Gold ETF. Further due to its unique structure and creation mechanism, the ETFs have much lower expenses as compared to physical gold investments.

Solution: c)

Forest produce can be divided into several categories. From the point of view of usage, forest produce can be categorized into three types: Timber, Non-Timber and Minor Minerals. Non-timber forest products [NTFPs] are known also as minor forest produce (MFP) or non-wood forest produce (NWFP).

MINOR FOREST PRODUCES (MFPs)