UPSC Static Quiz, 19 April 2023

Correct Answer: C
Explanation
• Statements 2 and 3 are correct. Statement 1 is correct.
• Statement 1 is incorrect. The Collegium of judges is the Supreme Court’s invention. It does not figure
in the Constitution, which says judges of the Supreme Court and High Courts are appointed by the
President and speaks of a process of consultation.
• Statement 2 is correct. Judges of the higher judiciary are appointed only through the collegium system
and the government has a role only after names have been decided by the collegium.
• Statement 3 is correct. The NJAC Act, 2014 was enacted by the government to regulate the procedure
to be followed the NJAC for recommending names for appointment as Chief Justice of India and other
judges of Supreme Court and Chief Justices and judges of High Courts and for their transfers.
• Collegium system is a five-member body, which is headed by the incumbent Chief Justice of India (CJI)
and comprises the four other senior most judges of the court at that time.
• A High Court collegium is led by the incumbent Chief Justice and two other senior most judges of that
court.

Correct Answer: C
Explanation
• Statements 1 and 2 are correct. Statement 3 is incorrect.
• Statements 1 and 2 are correct. The Finance Commission is required to make recommendations to the
President of India on the following matters:
1. The distribution of the net proceeds of taxes to be shared between the Centre and the states, and the
allocation between the states of the respective shares of such proceeds.
2. The principles that should govern the grants-in-aid to the states by the Centre (i.e., out of the
consolidated fund of India).
3. The measures needed to augment the consolidated fund of a state to supplement the resources of
the panchayats and the municipalities in the state on the basis of the recommendations made by the
state finance commission.
4. Any other matter referred to it by the president in the interests of sound finance.
• Finance Commission is not concerned with the special category status of States. It is nowhere
mentioned in the Constitution. Hence, statement 3 is incorrect.

Correct Answer: D
Explanation
• Option D is correct.
• The Parliament makes laws in a skeleton form and authorises the Executive to make detailed rules and
regulations within the framework of the parent law. This is known as delegated legislation or executive
legislation or subordinate legislation. Such rules and regulations are placed before the Parliament for its
examination.

• Solution:
(B)

o Dividend distribution tax is the tax imposed by the Indian Government on Indian companies according to the dividend paid to a company’s investors.
o Dividend distribution tax is also applicable on mutual funds.
o DDT is payable separately, over and above the income tax liability of a Company.

• Solution:
(C)

o The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa).
o “The Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.”
o Moreover, the NDB “shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.”
o The authorized capital for NDB is $100 Billion while initial subscribed capital is $50 billion.
o Initial subscribed capital was equally distributed among the founding members {$10 billion each.
o Voting power of each member is equal to the number of its subscribed shares in capital stock.