Daily MCQs 22 September

Q 1. With reference to Insolvency and Bankruptcy Code (IBC), consider the following statements:

1. The IBC was enacted in 2016, replacing a host of laws, with the aim to streamline and speed up the resolution process of failed businesses.

2. The Scheme for Sustainable Structuring of Stressed Assets (S4A) is an important provision in IBC implemented by the Government.

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

Answer: (a)

Recently, the Insolvency and Bankruptcy Board of India (IBBI) amended its regulations to boost the value of stressed companies. It will allow the sale of one or more assets of an entity undergoing an insolvency resolution process besides other changes.

Statement 1 is correct: The Insolvency and Bankruptcy Board of India was established in 2016 under the Insolvency and Bankruptcy Code, 2016 (Code).

• The IBC was enacted in 2016, replacing a host of laws, with the aim to streamline and speed up the resolution process of failed businesses.

• • The Code also consolidates provisions of the current legislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency.

• The code stipulates that the resolution process of a stressed company will have to be completed in a maximum of 270 days. 

Statement 2 is not correct: Several efforts were made by the Reserve Bank of India (RBI) and the government to fight the bad debts of banks. One of the measures included was the launching of the Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme) for addressing the large, stressed assets of the corporate sector with banks. The S4A Scheme aims at the financial restructuring of big debt projects by allowing the lender (bank) to acquire equity in the stressed project. The scheme makes financial restructuring of large projects and at the same time helps the lender’s ability to deal with such stressed assets.

Q 2. Which of the following statements is/ are correct about Pusa Bio-Decomposer?

1. It is essentially a fungi-based liquid solution that can soften hard stubble to the extent that it can be easily mixed with soil in the field to act as compost.

2. It rapidly converts crop residues, animal waste, dung, and other waste into organic manure.

Select the correct answer using the code given below:

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Answer: (c)

Recently, the Delhi Government announced that it would spray Pusa bio-decomposer free of cost over 5,000 acres of paddy fields in the city as this would help in controlling stubble burning and air pollution during winter. Stubble (parali) burning is a method of removing paddy crop residues from the field to sow wheat from the last week of September to November, coinciding with the withdrawal of southwest monsoon.

Statement 1 is correct:  Pusa Bio-Decomposer is essentially a fungi-based liquid solution that can soften hard stubble to the extent that it can be easily mixed with soil in the field to act as compost. The fungi thrive at 30-32 degrees Celsius, which is the temperature prevailing when paddy is harvested, and wheat is sown. It produces enzymes to digest cellulose, lignin, and pectin in paddy straw. It is developed by the Indian Council of Agricultural Research (ICAR) and named after ICAR’s campus at Pusa in Delhi,

Statement 2 is correct: It rapidly converts crop residues, animal waste, dung, and other waste into organic manure. It is an inexpensive and effective technology for the agricultural waste and crop residue management. The decomposer improves the fertility and productivity of the soil as the stubble works as manure and compost for the crops and lesser fertiliser consumption is required in the future. The soil loses its richness due to stubble burning and it also destroys the useful bacteria and fungi in the soil, apart from causing harm to the environment. It is an efficient and effective, cheaper, doable, and practical technique to stop stubble burning. It is an eco-friendly and environmentally useful technology and will contribute to achieving Swachh Bharat Mission.

Q 3. The Asia-Pacific Institute for Broadcasting Development (AIBD) was established in 1977 under the aegis of:

a. United Nations Educational, Scientific and Cultural Organization 

b. Association of Southeast Asian Nations

c. Indo-Pacific Economic Framework

d. Regional Comprehensive Economic Partnership

Answer: (a)

India’s Presidency of the prestigious Asia-pacific Institute of Broadcasting Development (AIBD) has been extended for one more year recently. This was unanimously decided by the AIBD member countries at the two-day General Conference of the Institute held in New Delhi. 

Option (a) is correct: The Asia-Pacific Institute for Broadcasting Development (AIBD) was established in 1977 under the aegis of the United Nations Educational, Scientific and Cultural Organization (UNESCO). It is a unique regional inter-governmental organisation servicing countries of the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) in the field of electronic media development. Its secretariat is situated in Kuala Lumpur and is hosted by the Government of Malaysia.

Q 4. With reference to amendments to The Arms Act in 2019, consider the following statements:

1. It reduces the number of firearms that an individual can procure from 3 to 2.

2. The validity of the license has been decreased from the present 5 years to 3 years.

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

Answer: (a)

Gun violence is an issue that is hotly debated in different countries. Anti-gun activists have often pointed to the killing of innocents in mass shootings in public places and called for a ban on the purchase of guns by civilians in the US also raising concerns over the increasing gun culture in India.

Arms Act of 1959 aims to be as extensive as possible to cover all aspects relating to the acquisition, possession, manufacture, sale, import, export, and transport of arms and ammunition in India.

Arms Amendment Act 2019:

• The Arms Act amended in 2019 reduces the number of firearms that an individual can procure from 3 to 2. (Statement 1 is correct)

• The validity of the license has been increased from the present 3 years to 5 years. (Statement 2 is not correct)

1. It also enlists specific provisions on curtailing the use of licensed weapons to ensure social harmony.
2. The punishment of imprisonment is increased between 7 and 14 years, along with a fine for the offence of acquisition, possession, or carrying of prohibited ammunition without a license.
3. It prohibits the conversion of one category of firearms to another without a license.
4. Unlawful manufacture, sale, and transfer are liable for an imprisonment term of not less than seven years which could be extended to life, with a fine.

Q 5.  Which of the following countries does not share a land border with Saudi Arabia? 

a. Jordan

b. Syria

c. Iraq

d. Kuwait

Answer: (b)

Recently, the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles visited Saudi Arabia to attend the Ministerial meeting of the India-Saudi Arabia Strategic Partnership Council.

Saudi Arabia is bordered by Jordan, Iraq, and Kuwait to the north; by the Persian Gulf, Qatar, the United Arab Emirates, and Oman to the east; by a portion of Oman to the southeast; by Yemen to the south and southwest; and by the Red Sea and the Gulf of Aqaba to the west.

Syria does not share a land border with Saudi Arabia.