UPSC Daily Quiz | 2 September 2024

Explanation:

Relevance: International gold prices start rising after the expected cut in the interest rates by the US Federal Reserve.

• A Fed rate cut generally weakens the US dollar rather than strengthening it. A weaker dollar increases the demand for gold, as gold is priced in dollars and becomes cheaper for foreign investors. (Hence, statement 1 is not correct)
• Lower interest rates make non-yielding assets like gold more attractive. When interest rates fall, the opportunity cost of holding gold (which does not yield interest) decreases, leading to an increase in its demand and price.
• A Fed rate cut usually lowers bond yields, which reduces the returns from bonds. Investors may shift their focus to gold as a safer alternative, boosting its prices. (Hence, statement 2 is correct)
• While a Fed rate cut can sometimes lead to higher inflation expectations, gold is often viewed as a hedge against inflation rather than diminishing in value due to it. Therefore, higher inflation expectations can actually support gold prices rather than weaken them. (Hence, statement 3 is not correct)

So, only one of the statements given above is correct.

Therefore, option (a) is the correct answer.

Subject: Current Affairs | Economy

Level of Difficulty: Moderate | Factual

Sources:

https://www.livemint.com/market/commodities/fed-rate-cut-how-will-it-impact-gold-prices-in-near-term-experts-weigh-in-11725183294315.htm

Explanation:

Relevance: The Hindu Explained: Is the administration of lie-detector tests legally valid?

Selvi vs. State of Karnataka Judgment

• In a watershed moment, the Supreme Court in 2010 in the case of Selvi vs. State of Karnataka ruled that no lie detector tests should be administered “except on the basis of consent of the accused” in accordance with the fundamental right against self-incrimination as enshrined under Article 20(3) of the Constitution. 

• A Bench comprising former Chief Justice of India (CJI) K.G. Balakrishnan and Justices R.V. Raveendran and J.M. Panchal further elucidated that a person’s right to make a statement or remain silent is integral to their right to privacy. Thus, they underscored, compelling an individual to make a statement would also constitute a violation of Article 21 of the Constitution.

Therefore, option (a) is the correct answer.

Subject: Current Affairs | Polity

Level of Difficulty: Moderate | Factual

Sources:

https://www.thehindu.com/news/national/is-the-administration-of-lie-detector-tests-legally-valid/article68568568.ece

Explanation:

Relevance: Over 100 volunteers led by innovator and climate activist Sonam Wangchuk started a foot march from Leh to the national capital to urge the Centre to resume the stalled dialogue with the leadership of Ladakh on their four-point agenda: Statehood, extension of the Sixth Schedule, early recruitment process and a public service commission for Ladakh, and separate Lok Sabha seats for Leh and Kargil districts.

• The Sixth Schedule of the Indian Constitution, under Article 244(2), provides special administrative arrangements for the tribal areas of Assam, Meghalaya, Mizoram, and Tripura. It allows for the creation of Autonomous Districts and Autonomous Regions to ensure that these areas are governed by councils that have legislative, executive, judicial, and financial powers to manage their affairs in accordance with their distinct traditions and cultures.
• Statement 1 is not correct because Nagaland is not included in the Sixth Schedule; it is governed by separate provisions.
• Statement 2 is not correct because it is the Governor, not the President, who determines the areas to be administered as Autonomous Districts and Autonomous Regions under the Sixth Schedule.
• Statement 3 is not correct because the Governor nominates up to four members of the Autonomous District Council, while the rest are elected based on adult franchise.

So, none of the statements given above is correct.

Therefore, option (d) is the correct answer.

Subject: Current Affairs | Polity

Level of Difficulty: Moderate | Factual

Sources:

https://www.thehindu.com/news/national/ladakh/sonam-wangchuk-led-delhi-chalo-padyatra-starts-from-leh/article68593283.ece

Explanation:

Relevance: Growth in India’s Gross Goods and Services Tax (GST) collections slowed marginally to 10% in August from 10.3% in July, with revenues of nearly ₹1.75 lakh crore.

Goods and Services Tax (GST) 

• Started from July 1, 2017 on the recommendation of Kelkar Task Force on indirect taxes. (Hence, statement 1 is correct)
• It is an indirect tax across the country on products and services. (Hence, statement 1 is not correct)
• Under the GST system, tax will be levied only on the value added at each stage. (Hence, statement 3 is not correct)
• It is a single tax (collected at multiple points) with a full set-off for taxes paid earlier in the value chain.
• Both the Centre and the States simultaneously levy GST across the value chain.
• GST is a destination-based tax. The tax is received by the State in which the goods or services are consumed and not by the state in which such goods are manufactured. 

So, only one of the statements given above is correct.

Therefore, option (a) is the correct answer.

Subject: Current Affairs | Economy

Level of Difficulty: Moderate | Factual

Sources:

https://www.thehindu.com/business/Economy/gst-receipts-growth-slows-marginally-to-10-in-august/article68593022.ece#:~:text=Growth%20in%20India's%20Gross%20Goods,14.4%25%20in%20the%20previous%20month.

Explanation:

Relevance: The President of India recently coined the phrase “black coat syndrome.”

Black Coat Syndrome

• The President of India recently coined the phrase “black coat syndrome” for the high stress levels ordinary citizens experience in courtrooms. She compared it to the “white coat syndrome” patients feel in hospitals.

Therefore, option (b) is the correct answer.

Subject: Current Affairs | Polity

Level of Difficulty: Moderate | Factual

Sources:

https://indianexpress.com/article/india/president-murmu-wake-up-call-to-judiciary-poor-afraid-of-going-to-courts-9545295/