QUIZ-5 (Q+S) 2024-25 Mrunal EcoPCB10 KING R QUEEN P

FREE BY KING R QUEEN P [Help Others God Will Help You]

1/5/24, 1:02 PM Weekly MCQ TEST for Prelim Economy Pillar1C- SHAREMARKET | Unacademy
Plus Test series Mrunal’s Economy for UPSC Prelims (PCB10-RAF… Weekly MCQ TEST for Prelim Economy Pillar1C- …
Solutions
All answers
Question 1
YOU DIDN'T ATTEMPT
Your Time Taken: 11s Avg Time Taken By Others: 1m 54s Attempt Accuracy: 73%
Which of the following statement(s) is/are correct? (निम्नलिखित में से कौन सा / से कथन सही है/हैं
)
1. Ways and means advances is the mechanism through which government lends money
to RBI. (तरीके और अग्रिम साधन वह तंत्र है जिसके माध्यम से सरकार भारतीय रिज़र्व बैंक को पैसा उधार
देती है)
2. Commercial bills & Certificate of Deposits are examples of short term debt instrument.
(वाणिज्यिक बिल और जमा प्रमाणपत्र लघु अवधि के ऋण साधन के उदाहरण हैं)
Only 2
Only 1
CORRECT ANSWER

55 min 6 day
Both 1 and 2 None of them
Solution Hide
St1 is incorrect: Under Ways and Means Advances, RBI lends money to governments. It is
used by RBI to help states overcome temporary mismatches in their receipts and payments.
St2 is correct: Commercial Paper, Certificate of Deposit are unsecured, short-term debt
instruments.
Question 2
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TReDS is a mechanism through which _ _ _: (ट्र्रीडस एक तंत्र है जिसके माध्यम से _ _ _)
Banks report bad loans data to RBI

Startup companies raise capital
(बैंक आरबीआई को खराब (न वसूलने योग्य )
(स्टार्टअप कं पनियां पूंजी जुटाती हैं)
ऋण की जानकारी की रिपोर्ट करते हैं)
MSMEs borrow money for short term

by pledging unpaid invoices (सूक्ष्म, लघु
Credit rating agencies review new
एवं मध्यम उपक्रमों ने अवैतनिक चालान का
bonds (क्रे डिट रे टिंग एजेंसियां नए बॉन्ड की

https://unacademy.com/quiz/weekly-mcq-test-for-prelim-economy-pillar1c-sharemarket/G77HAKXK6K/solutions/SP_RKJZBUC48HTKDMY0V 1/39
समीक्षा करती हैं) वादा करके अल्पावधि के लिए पैसा उधार
लिया)
CORRECT ANSWER
Solution Hide
TReDS: Trade Receivable Discounting System
TReDS is an electronic platform for facilitating the borrowing of money by MSMEs for short
term by pledging unpaid bills and invoices through multiple financiers.
Question 3
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Consolidated Sinking Fund (CSF) is the fund inside RBI where _ _ _ _ is kept. (कं सोलिडेटेड
सिंकिं ग फं ड (CSF) आरबीआई के अंदर का फं ड है जहाँ _ _ _ _ रखा जाता है)
Buffer amount for the repayment of

State governments loans. (राज्य
CRR money of the banks (बैंकों के
सरकारों के ऋणों की अदायगी के लिए बफर
नकद आरक्षित अनुपात)
राशि)
CORRECT ANSWER
Penalties levied on errant banks

Dividend of the Union Government
(अनियमित्ताओं वाले बैंकों पर जुर्माना लगाया
(कें द्र सरकार का लाभांश)
गया)
Solution Hide
State Governments maintain a Consolidated Sinking Fund (CSF) with the RBI as a buffer for
repayment of their liabilities/State governments loans.
Question 4
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A) Consol Bond is an example of Irredeemable Bond. (कथन : कं सॉल बॉन्ड अमोचनीय बंधपत्र का एक
उदाहरण है।)
R) Investor is not given interest on the Consol Bond. ( कारण : कं सॉल बॉन्ड पर निवेशक को कोई ब्याज
नहीं दिया जाता है)
Both A & R are true and R is the Both A & R are true but R does not
correct explanation of A explain A
A is true but R is false

A is false but R is true.
CORRECT ANSWER
Solution Hide
A is True: A perpetual bond is also known as a "consol bond". It is irredeemable bond with no
maturity date.

R is false: These bonds provide a steady stream of interest to investors forever.
Question 5
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Your Time Taken: 6s Avg Time Taken By Others: 26s Attempt Accuracy: 88%
Bond yield and bond price are _ _ _ _ _ related with each other. (बॉन्ड यील्ड और बॉन्ड की कीमत
एक दू सरे से _ _ _ _ _ संबंधित हैं)
Inversely (व्युत्क्रमानुपाती)
Symbiotically (सहजीवी रूप से )
CORRECT ANSWER
Proportionately (समानुपाती ) Agnostically (द्वंद्वात्मक रूप से )
Solution Hide
Bond price and bond yield are inversely related with each other. As the price of a bond goes
up, the yield decreases.
Question 6
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Which of the following statement(s) is/are correct? (निम्नलिखित में से कौन सा / से कथन सही है /
हैं)
1. Electoral bonds can't be pledged for obtaining loans. (ऋण प्राप्त करने के लिए चुनावी बॉन्ड को
गिरवी नहीं रखा जा सकता है)
2. Hybrid bonds can be converted into shares. (हाइब्रिड बॉन्ड को शेयर में परिवर्तित किया जा सकता
है )
Only 1 Only 2
Both 1 and 2
None of them
CORRECT ANSWER
Solution Hide
St 1 is correct: Electoral Bond is a financial instrument for making donations to political
parties. They can't be pledged for obtaining loans.
St 2 is correct: A hybrid security is a single financial security that combines two or more
different financial instruments. Hybrid bonds can be converted into shares.
Question 7
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Which of the following statement(s) is/are correct regarding Panda bonds? (पांडा बॉन्ड के संबंध
में निम्नलिखित में से कौन सा/से कथन सही है / हैं)
1. They are issued by Chinese entities inside China.(वे चीन के अंदर चीनी संस्थाओं द्वारा जारी किए
जाते हैं)
2. Their denomination is US dollars. (उनका अभिधान अमेरिकी डॉलर में है)
3. It is a subtype of green bond meant only for conservation of Pandas in China. (यह हरित
बांड का एक उपप्रकार है जिसका अभिप्राय के वल चीन में पंडों के संरक्षण के लिए है )
Only 1 and 2 Only 2 and 3
None of the given statements.

1, 2 and 3
CORRECT ANSWER
Solution Hide
St 1 and 2 are incorrect: Panda Bonds are bonds issued by foreign issuers denominated in
Chinese yuan renminbi (CNY) and placed on the domestic market of mainland China.
St 3 is incorrect: It is not meant only for conservation of Pandas in China. Green panda bonds
are those whose proceeds are earmarked for various green assets or projects.
Question 8
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Which of the following statement(s) is/are incorrect about green and blue bonds? (निम्नलिखित
में से कौन सा / से कथन हरे और नीले बांड के बारे में गलत है)
1. They are issued to borrow money for eco-friendly projects. (उन्हें इको-फ्रें डली प्रोजेक्ट्स के लिए
पैसे उधार लेने के लिए जारी किया जाता है)
2. They can be issued only in dollar denomination.(उन्हें के वल डॉलर मूल्यवर्ग में जारी किया जा
सकता है)
3. World's first Blue Bond launched by World Bank in Marshall Islands. (विश्व बैंक द्वारा मार्शल
द्वीप समूह पहला ब्लू बॉन्ड में शुरू किया गया)
Only 2 and 3
Only 1
CORRECT ANSWER
Only 1 and 3 All three statements.
Solution Hide
St 1 is correct: Blue bonds are a subset of green bonds used specifically to finance projects
related to environmental conservation.
St 2 is incorrect: They are issued in different denominations like Euro and dollar.
St 3 is incorrect: In 2018, the Government of Seychelles announced the issuance of the world's
first sovereign Blue Bond.
Question 9
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Force Majeure is a term originated from _ _ _ (फोर्स मेजेअर एक शब्द है जिसका उद्भव _ _ में हुआ
है)
American Civil Law (अमेरिकी नागरिक French Civil law (फ्रांस नागरिक कानून)
कानून) CORRECT ANSWER
Ancient Greek and Latin books on

German Civil Law (जर्मनी नागरिक
Civil Laws (प्राचीन यूनान एवं लैटिन पुस्तकों
कानून)
पर नागरिक कानून)
Solution Hide
The term ‘force majeure’ is an event or effect that can be neither anticipated nor controlled.
From a contractual perspective, a force majeure clause provides temporary reprieve to a
party from performing its obligations under a contract during the occurrence of a force
majeure event (Eg. COVID).
Force majeure, in French, means “major force” or “greater (or superior) force.” The concept
originated in the civil laws of France.
Question 10
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Which of the following statement/s are correct regarding electoral bonds? (चुनावी बॉन्ड के बारे
में निम्नलिखित में से कौन सा / से कथन सही है/ हैं) -
1. They can be purchased from any Scheduled Commercial Banks. (इन्हें किसी भी अनुसूचित
वाणिज्यिक बैंकों से खरीदा जा सकता है)
2. They can be purchased by any resident of India. (उन्हें भारत के किसी भी निवासी द्वारा खरीदा जा
सकता है)
3. These bonds don't fetch interest income to the bond holder.(ये बॉन्ड बॉन्ड धारक को ब्याज से
होने वाली आय नहीं देते हैं)
Only 1 and 2 Only 2 and 3
3 only
1, 2 and 3
CORRECT ANSWER
Solution Hide
St 1 and 2 are incorrect: An electoral bond is a convertible note that can be purchased from
specified State Bank of India offices by any Indian person (not any resident) or company
formed in India.
St 3 is correct: Electoral Bonds are interest-free banking instruments issued on a non-
refundable basis to the bondholder and are not available for trading.
Question 11
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Which of the following statement(s) is/are correct? (निम्नलिखित में से कौन सा / से कथन सही है /
हैं)

1. ASBA is the online form by Ministry of Corporate Affairs for registration of new
companies. (नई कं पनियों के पंजीकरण के लिए कॉर्पोरे ट मामलों के मंत्रालय द्वारा ऑनलाइन फॉर्म
ए.एस.बी.ए. है)
2. ADR is the mechanism through which American Companies issue shares in Indian
Market.(एडीआर वह प्रक्रिया है जिसके माध्यम से अमेरिकी कं पनियां भारतीय बाजार में शेयर जारी करती
हैं)
Only 1 Only 2
Neither 1 nor 2
Both 1 and 2
CORRECT ANSWER
Solution Hide
St 1 is incorrect: Applications Supported by Blocked Amount (ASBA) is a method developed
by SEBI to block the funds for Initial Public Offer (IPO), Rights issues, Follow-on Public Offer
(FPO), etc.
St 2 is incorrect: American Depository Receipts (ADRs) are a way of trading non-U.S. stocks
on the U.S. exchange.
Question 12
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Securities Appellate Tribunal hears to appeals against the orders passed by: (प्रतिभूति अपीलीय
न्यायाधिकरण में _ _ _ _ से पारित आदेशों के खिलाफ अपील सुनी जाती है )
IRDAI (बीमा विनियामक और विकास

SEBI (भारतीय प्रतिभूति और विनिमय बोर्ड)
प्राधिकरण)
PFRDA (पेंशन कोष नियामक एवं विकास All of the above (उपरोक्त में से सभी)
प्राधिकरण) CORRECT ANSWER
Solution Hide
Securities Appellate Tribunal hears appeals against the following orders: Orders issued by the
Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory
and Development Authority (PFRDA) and Securities and Exchange Board of India (SEBI).
Question 13
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Which of the following statement(s) is/are correct? (निम्नलिखित में से कौन सा/से कथन सही है/हैं) -
1. SATARKTA is the online portal of SEBI for filing complaints. ( ‘सतर्क ता’ शिकायतों को दाखिल
करने के लिए सेबी का ऑनलाइन पोर्टल है)
2. SCORES is the online portal of SEBI to get approval for launching new IPO. (‘स्कोर्स’ नए
आईपीओ लॉन्च करने के लिए अनुमोदन प्राप्त करने के लिए सेबी का ऑनलाइन पोर्टल है)
Only 1 Only 2

None of them
Both 1 and 2
CORRECT ANSWER
Solution Hide
st1 and 2 are not correct: The online platform for filing complaints in SEBI is 'SEBI Complaints
Redress System or SCORES'.
Question 14
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Participatory Notes are issued by: (पार्टिसिपेटरी नोट्स_ _ _ _ _ _ द्वारा जारी किए जाते हैं)
SEBI registered foreign portfolio

investors (FPI) to overseas investors.
Scheduled Commercial Banks to
(सेबी ने विदेशी पोर्टफोलियो निवेशकों को
Primary Dealers. (प्राथमिक व्यापारियों के
ओवरसीज़ निवेशक के रूप में पंजीकृ त किया
लिए अनुसूचित वाणिज्यिक बैंक)
है )
CORRECT ANSWER
Indian Banks to an overseas

All India Financial Intermediaries to
entrepreneur who wishes to launch
Deposit Taking NBFCs. (ऑल इंडिया
IPO in India. (एक विदेशी उद्यमी के लिए
फाइनेंशियल इंटरमीडियरीज़ के लिए जमा
भारतीय बैंक जो भारत में आईपीओ लॉन्च
लेने वाली एनबीएफसी को)
करना चाहते हैं)
Solution Hide
Participatory Notes or P-notes are issued by SEBI-registered Foreign Portfolio Investors (FPIs)
to overseas investors who wish to be a part of the Indian stock market without registering
themselves directly.
Question 15
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Which of the following statement(s) is/are correct about Financial Stability and
Development Council (FSDC)? (निम्नलिखित में से कौन सा / से कथन वित्तीय स्थिरता एवं विकास
परिषद के बारे में सही है / हैं?)
RBI Governor has the veto power in IBBI chief is a member of FSDC.
FSDC meetings. (भारतीय रिज़र्व बैंक के (आइबीबीआई प्रमुख एफएसडीसी का सदस्य
गवर्नर के पास एफएसडीसी की बैठकों में है)
वीटो पावर है) CORRECT ANSWER
Department of Financial Services

provides the secretarial assistance to
All of the above (उपरोक्त में से सभी)

FSDC. (वित्तीय सेवा विभाग एफएसडीसी को
सचिवीय सहायता प्रदान करता है)
Solution Hide
IBBI chief is a member of FSDC. Other members include the Chairman of SEBI, IRDA, and
PFRDA.
RBI Governor has no veto power in FSDC meetings.
The Financial Stability and Cyber Security (FS&CS) Division in the Department of Economic
Affairs provides secretarial assistance to the FSDC.
Question 16
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Budget-2021 has announced that the regulator for the gold exchange market will be _ _ _ _.
SEBI
Forward Market Commission
CORRECT ANSWER
Warehousing Development and

Commodities market Commission
Regulatory Authority
Solution Hide
Finance Minister in the Union Budget for 2021-22 announced that SEBI would be the regulator
for gold exchanges.
Question 17
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Which of the following company / companies can be started by minimum two members?
(निम्नलिखित में से कौन सी कं पनी / कं पनियाँ न्यूनतम दो सदस्यों द्वारा शुरू की जा सकती है)
1. Private Limited Company (प्राइवेट लिमिटेड कं पनी)
2. Limited liability partnership company (सीमित देयता भागीदारी कं पनी)
Only 1 Only 2
Both 1 and 2
None of them
CORRECT ANSWER
Solution Hide
Companies started by a minimum two members are Private Companies, Public Companies,
Limited Liability Partnership, etc.

Question 18
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How many of the following are examples of short-term debt instruments? [निम्नलिखित में से
कितने अल्पकालिक ऋण उपकरणों के उदाहरण हैं?]
1. Cash Management bill [नकदी प्रबंधन बिल]
2. Commercial papers. [कमर्शियल पेपर (वाणिज्यिक पत्र)]
3. Promissory notes. [वचन-पत्र]
4. Certificate of deposit.[जमा प्रमाणपत्र (सीडी)]
5. optionally fully convertible debenture [वैकल्पिक रूप से पूरी तरह से परिवर्तनीय डिबेंचर]
Select the correct answer using the codes given below. [नीचे दिए गए कोड का उपयोग करके सही
उत्तर का चयन करें ।]
Only two instruments.[के वल दो

all five instruments [सभी पांच उपकरण]
उपकरण।]
Only Four instruments.[के वल चार

Only three instruments. [के वल तीन
उपकरण]
उपकरण।]
CORRECT ANSWER
Solution Hide
Examples of short-term debt instruments:
1. Cash Management bill
2. Commercial papers.
3. Promissory notes.
4. Certificate of deposit.
OFCD is a long-term debt related instrument, not short term.
Question 19
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Consider the following statements. [निम्नलिखित कथनों पर विचार करें ।]

1. If a state government wishes to borrow money for more than one year it must approach
the money market. [यदि कोई राज्य सरकार एक वर्ष से अधिक समय के लिए पैसा उधार लेना चाहती है
तो उसे मुद्रा बाजार से संपर्क करना चाहिए।]
2. If a political party is to issue an Electoral bond It has to approach the Capital market in
India. [यदि किसी राजनीतिक दल को चुनावी बॉन्ड [Electoral bond] जारी करना है तो उसे भारत में पूंजी
बाजार से संपर्क करना होगा]
Which of these statements given above is/are correct? [ऊपर दिए गए इनमें से कौन सा कथन सही है/
सही है?]
1 only [के वल 1] 2 only [के वल 2]
Neither 1 nor 2 [ न तो 1 और न ही 2]
1 and 2 only [के वल 1 और 2]
CORRECT ANSWER
Solution Hide
Option (d) is correct: If a state government wishes to borrow money for more than 1 year, it
has to goto capital market and not money market so #1 is wrong.

Electoral bonds are short-term debt instruments. Electoral bonds are purchased anonymously
by donors and are valid for 15 days from the date of issue. short term instruments not issued
in capital market which is for long term. so #2 is wrong.
Question 20
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Find the correct statement about the certificate of deposit (CD). [जमा प्रमाणपत्र (सीडी) के बारे में
सही कथन प्राप्त करें ]
1. It is a secured, long-term debt instrument. [ यह एक सुरक्षित, दीर्घकालिक ऋण साधन है।]
2. It is sold at the discount of its face value. [यह इसके अंकित मूल्य के ऊपर छू ट/डिस्काउंट देपर
बेचा जाता है।]
3. They are issued by commercial banks. [वे वाणिज्यिक बैंकों द्वारा जारी किए जाते हैं।]
Select the correct answer Using the codes given below. [नीचे दिए गए कोड का उपयोग करके सही
2 and 3 only [ के वल 2 और 3]
1 only [के वल 1]
CORRECT ANSWER
1 and 3 only [ के वल 1 और 3] 1, 2 and 3 [1, 2 और 3]
Solution Hide
Certificates of deposit (CDs) are unsecured, short-term, negotiable debt instruments issued by
commercial banks in the money market. It is sold at the discount of its face value.
The government initiated the market of CD’s in order to widen the range of money market
instruments and to provide a higher flexibility to investors for investing their surplus money for
the short term.
Question 21
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Which of the following statements is/are correct about the sovereign green bonds in India?
[निम्नलिखित में से कौन सा कथन भारत में संप्रभु हरित बॉण्ड के बारे में सही है?]
1. The first time it was issued in the year 2023. [पहली बार यह वर्ष 2023 में जारी किया गया था।]
2. Money collected from these bonds directly goes to the Public Account of India. [इन बांडों
से एकत्रित धन सीधे भारत के सार्वजनिक खाते में जाता है।]
3. Projects funded by the Sovereign green bonds are monitored by the CEO of NITI Aayog.
[संप्रभु हरित बॉण्ड द्वारा वित्त पोषित परियोजनाओं की निगरानी नीती अयोग के सीईओ द्वारा की जाती है।]
Select the correct answer using the codes given below. [[नीचे दिए गए कोड का उपयोग करके सही
उत्तर का चयन करें ।]]
CORRECT ANSWER
1 and 2 only [के वल 1 और 2 ] 1 and 3 only [के वल 1 और 3 ]
Solution Hide

#1 is right. Sovereign green bonds were first issued in the year 2023.
#2 is wrong. Money collected from these bonds directly goes to the consolidated fund of
India. RBI sells them via the E-Kuber platform to investors.
#3 is wrong. Investment projects will be reviewed by the Finance Ministry → Green Finance
Working Committee (GFWC) headed by the Chief Economic Advisor (CEA).
Question 22
YOU DIDN'T ATTEMPT
Proceeds of the Sovereign Green Bond in India are to be utilised in which of the following
fields? (संप्रभु हरित बॉण्ड की आय निम्नलिखित में से किस क्षेत्र में उपयोग की जाती है?)
1. Renewable energy. [अक्षय ऊर्जा]
2. Clean Transport [स्वच्छ परिवहन]
3. Water and waste management [पानी और अपशिष्ट प्रबंधन]
4. Hydropower plants larger than 25 megawatts [25 मेगावाट से बड़े जलविद्युत संयंत्र]
How many of the fields are correct? [कितने फ़ील्ड सही हैं?]
Only one [के वल एक] Only two [के वल दो]
Only three [के वल तीन]

All four [सभी चार]
CORRECT ANSWER
Solution Hide
Recently, the Finance Minister in the Budget 2022 announced that the government proposes
to issue sovereign green bonds to mobilise resources for green infrastructure.
The proceeds will be deployed in public sector projects which help in reducing the carbon
intensity of the economy.
The projects can include renewable energy, clean transportation and green buildings, among
others.
Proceeds of the Sovereign green bond can be utilised in the following sectors.
● Renewable Energy such as solar, wind, Etc.
● Energy efficiency
● Clean transportation
● Water and waste management
● Pollution control. So #1,2,3 are right.
It will not be used in hydropower plants larger than 25 megawatts, Nuclear power, landfill
projects, alcohol/weapons/tobacco/gaming/palm oil industries so #4 is wrong.
Question 23
YOU DIDN'T ATTEMPT
What is the objective of a Credit Default Swap (CDS)? [क्रे डिट डिफ़ॉल्ट स्वैप (सीडी) का उद्देश्य क्या
है?]
It is an instrument to protect the

lender/bond investors from loan It is an instrument used for the short
default by the borrower. [यह ऋणदाता/ selling of stocks. [यह एक उपकरण है
बॉन्ड निवेशकों को उधारकर्ता द्वारा जिसका उपयोग शेयरों की शॉर्ट सेलिंग के
दिवालियेपन से बचाने के लिए एक साधन है।] लिए किया जाता है।]
CORRECT ANSWER
It is an instrument to bonds in the Bankers use it to restructure

future market. [यह वायदा बाजार में बॉन्ड corporate loans. [बैंकर इसका उपयोग
के लिए एक उपकरण है।] कॉर्पोरे ट ऋणों के पुनर्गठन के लिए करते हैं।]
Solution Hide
Option (a) is correct: Credit default swap (CDS) is an instrument to protect the lender/bond
investors from loan default by the borrower. To swap the risk of default, the lender buys a CDS
from another investor who agrees to reimburse them if the borrower defaults.
Credit default swaps (CDS) are a type of insurance against default risk by a particular
company. The company is called the reference entity and the default is called a credit event.
It is a contract between two parties, called the protection buyer and the protection seller.
Under the contract, the protection buyer is compensated for any loss emanating from a credit
event in a reference instrument. In return, the protection buyer makes periodic payments to
the protection seller
Question 24
YOU DIDN'T ATTEMPT
Find the correct statement about zero coupon, zero Principle instrument. [जीरो-कू पन, जीरो-
प्रिंसिपल इंस्ट्रूमेंट्स के बारे में सही कथन खोजें।]
1. They do not return the principle to the investors.[ वे निवेशकों को प्रिंसिपल [मूलधन] वापस नहीं
करते हैं।
2. They do not return interest to the investors. [वे निवेशकों को ब्याज नहीं देते हैं।]
3. They are usually issued by charitable organisations or NGOs. [वे आमतौर पर धर्मार्थ संगठनों या
एनजीओ द्वारा जारी किए जाते हैं।]
Select the correct answer Using the codes given below. [नीचे दिए गए कोड का उपयोग करके सही
1 and 2 only [ के वल 1 और 2] 2 and 3 only [ के वल 2 और 3]
1, 2 and 3 [1, 2 और 3]
1 and 3 only [ के वल 1 और 3]
CORRECT ANSWER
Solution Hide
The zero-coupon, zero-principal instrument is not a loan but a donation. So, the borrower
does not return interest—therefore zero coupon—and it does not return the principal
(therefore zero principal). ⇒ Such instruments will be issued by charitable organizations in
Social Stock Exchange.
Question 25
YOU DIDN'T ATTEMPT
With reference to the short selling consider the following statements: (शोर्ट सेलिंग के संदर्भ में
निम्नलिखित कथनों पर विचार करें )
1. It involves the sale of a borrowed share by the player with the intention of purchasing it
again at a later date at a lower price. (इसमें खिलाड़ी द्वारा शेयर को उधार लेके बेचा जाता है इस
इरादे के साथ की कु छ समय बाद उसे कम क़ीमतो पे वापस ख़रीदना है।)
2. A short seller will make a profit if the market is showing bearish sentiment towards the
the given company. (यदि उस कं पनी के प्रति बाज़ार की संवेदना 'भालू/बेयर' क़िस्म की है तो शोर्ट सेलर
को मुनाफ़ा हो सकता है।)
Which of the statements given above is/are correct?
1 only 2 only
Both 1 and 2
Neither 1 nor 2
CORRECT ANSWER
Solution Hide
Statement 1 is correct: Short selling involves the sale of a borrowed security with the intention
of purchasing it again at a later date at a lower price..
Statement 2 is correct: A short seller will make a profit when market is bearish for the
company.
Question 26
YOU DIDN'T ATTEMPT
“Co-location”, is a term associated with which of the following areas? (को-लोके शन (Co-
Location) एक शब्द निम्नलिखित में से किस क्षेत्रों से जुड़ा है?
Setting up various levels of

Educational Institutes, right from When army, navy and airforce setup
primary education to universities, in their bases close to each other.[जब
close proximity. [प्राथमिक शिक्षा से लेकर थल सेना, जल सेना और वायु सेना अपने
विश्वविद्यालयों तक, निकटता में विभिन्न स्तरों ठिकाने एक दू सरे के निकट स्थापित करते हैं।]
के शिक्षण संस्थान स्थापित करता है]
When a trader sets up their offices

very close to the Stock Exchange
When thermal power plants and the
and conducts trading through the
aluminium smelters are setup close
algorithms.[जब कोई व्यापारी स्टॉक
to each other. [जब तापीय ऊष्मा से चलने
एक्सचेंज के बहुत करीब अपने कार्यालय
वाला बिजलीघर और एल्युमिनियम स्मेल्टर
स्थापित करता है और एल्गोरिदम के माध्यम
एक दू सरे के करीब स्थापित होते हैं।]
से व्यापार करता है]
CORRECT ANSWER
Solution Hide
Option (c) is correct: The “Co-location” is a term wherein the trader sets up their offices very
close to the Stock Exchange and conducts trading through the algorithms.
Question 27
YOU DIDN'T ATTEMPT

In recent years, the government of India has carried out the disinvestment through which of
the following instruments: (हाल के वर्षों में, भारत सरकार ने निम्नलिखित में से किस उपकरण के माध्यम
से विनिवेश किया है:)
1. Exchange traded funds (ETF) (एक्सचेंज ट्रेडेड फं ड (ETF))
2. Initial public offer (IPO) (प्रारं भिक सार्वजनिक प्रस्ताव (आईपीओ))
Answer Codes:
only 1 only 2
both 1 and 2
neither 1 nor 2
CORRECT ANSWER
Solution Hide
Disinvestment done through ETF e.g. CPSE-ETF.
Disinvestment done through IPO e.g. LIC
so Both are right. C answer.
Question 28
YOU DIDN'T ATTEMPT
India's first bullion exchange is being set up at the: [भारत का पहला बुलियन एक्सचेंज स्थापित
किया जा रहा है:]
Delhi [दिल्ली] Mumbai [मुंबई]
Gift city, Gujarat [गिफ्ट सिटी, गुजरात] Hyderabad, Telangana [हैदराबाद,

CORRECT ANSWER तेलंगाना]
Solution Hide
Option (c) is correct: A bullion market/exchange is a place where large quantities of gold and
silver are traded. India International Bullion Exchange (IIBX) is India’s first bullion exchange
located at GIFT City, Gujarat.
Question 29
YOU DIDN'T ATTEMPT
Consider the following statements about the National Institute of Securities Markets.[राष्ट्रीय
प्रतिभूति बाजार संस्थान के बारे में निम्नलिखित कथनों पर विचार करें ।]
1. It is an educational institute setup directly by the department of financial services. [यह
वित्तीय सेवाओं के विभाग द्वारा सीधे स्थापित एक शैक्षिक संस्थान है।]
2. It can award degree and diploma in fields related to the financial market. [यह वित्तीय
बाजार से संबंधित क्षेत्रों में डिग्री और डिप्लोमा प्रदान कर सकता है।]
Select the correct answer using the codes given below. [नीचे दिए गए कोड का उपयोग करके सही

CORRECT ANSWER
1 and 2 only [ के वल 1 और 2] Neither 1 nor 2 [न तो 1 और न ही 2]
Solution Hide
Statement 1 is incorrect: National Institute of Securities Markets is an educational institute
under SEBI. The National Institute of Securities Markets (NISM) is a public trust established in
2006 by the Securities and Exchange Board of India (SEBI), the regulator of the securities
markets in India. The institute carries out a wide range of capacity-building activities at
various levels aimed at enhancing the quality standards in securities markets.
Statement 2 is correct: It awards/provides a degree or diploma in a field related to the
financial market. budget 2023 announced this
Question 30
YOU DIDN'T ATTEMPT
Find Correct statements (सही कथन का पता लगाइए) [Asked in UPSC-Pre-2018)

1. The RBI manages and services Government of India Securities, but not any State
Government Securities. (भारतीय रिजर्व बैंक, भारत सरकार की प्रतिभूतियों का प्रबंधन और प्रयोजन
करता है, लेकिन किसी भी राज्य सरकार की प्रतिभूतियों का नहीं।)
2. Treasury bills are issued by Govt of India and there are no treasury bills issued by State
Govts. (कोष-पत्र (ट्रेज़री बिल) भारत सरकार द्वारा जारी किए जाते हैं और राज्य सरकारों द्वारा कोष-पत्र जारी
नहीं किए जाते हैं।)
3. . Treasury bills offer are issued at a discount from the par value. (कोष-पत्र ऑफर अपने
सममूल्य से बट्टे पर जारी किए जाते हैं।)
Ans Codes: (उत्तर हेतु कू ट)
1 and 2 Only (के वल 1 और 2) 3 only (के वल 3)
2 and 3 Only (के वल 2 और 3)

1, 2 and 3 (1, 2 और 3)
CORRECT ANSWER
Solution Hide
Government Securities are tradable instruments issued by the Central Government or the
State Governments. They acknowledge the government’s debt obligation.
St1 is wrong: The Reserve Bank of India (RBI) manages and services the government securities
and debt for the centre as well as state governments in terms of the agreements that it enters
in with other state governments.
St2 is right: Treasury bills or T-bills, which are money market instruments and are short term
debt instruments issued by the Government of India. Presently, they are issued in three tenors,
namely, 91day, 182 day and 364 day. They are not issued by the state governments.
St3 is right: Treasury bills are zero coupon securities and pay no interest. Instead, they are
issued at a discount and redeemed at the face value at maturity.
Question 31
YOU DIDN'T ATTEMPT

Which of the following is /are example (s) of ‘Near Money’? (निम्नलिखित में से कौन-सा/से 'द्रव्यवत्
प्रपत्र (नियर मनी)' का/के उदाहरण हैं/हैं?) [UPSC-CDS-2016-I]
1. Treasury Bill ((कोष-पत्र (ट्रेज़री बिल))
2. Credit Card (क्रे डिट कार्ड)
3. Saving accounts (बचत खाता)
4. Money Market Instruments (मनी मार्के ट इंस्ट्रू मेंट्स)
Answer Codes: (उत्तर हेतु कू ट:)
1 only (के वल 1) 2 only (के वल 2)
1, 3 and 4 only (के वल 1, 3 और 4)

1, 2 and 3 Only (के वल 1, 2 और 3)
CORRECT ANSWER
Solution Hide
Near money is a cash equivalent of money. They are very liquid and that are easily converted
into cash. Some of the examples of near money are:
Savings accounts
Treasury Bills
Money market securities
Liquid foreign currencies (US dollar, Japanese yen)
Credit cards are not considered near money. credit cards can serve as a means of purchase
or provide access to a cash advance, but they would not be considered near money. The
primary reason is that credit cards – while capable of providing perceived liquidity – are a
revolving liability or debt.
So the Answer is D
Question 32
YOU DIDN'T ATTEMPT
In Indian economy, non-financial debt includes ___ ? (निम्नलिखित में से कौन-सा/से भारतीय
अर्थव्यवस्था में, गैर-वित्तीय ऋण में शामिल है/हैं?) (Prelims-2020 SetB- Q84)
1. Housing loans owed by households (परिवारों द्वारा बकाया आवास ऋण)
2. Amounts outstanding on credit cards (क्रे डिट कार्ड पर बकाया राशि)
3. Treasury bills (कोष-पत्र यानि ट्रेजरी बिल)
Codes: (उत्तर हेतु कू ट)
1 only (के वल 1) 1 and 2 Only (के वल 1 और 2)
1, 2 and 3 (1, 2 और 3)
3 only (के वल 3)
CORRECT ANSWER
Solution Hide
Debts are contractual obligations to repay monetary loans, often with related interest
expenses.Non-financial debt is the debt held by the Households, Governments and firms not
in the financial sector. It includes Housing loans owned by households, amounts outstanding
on credit cards, treasury bills.
So the Answer is D
Question 33
YOU DIDN'T ATTEMPT

Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the
sources of the post-Harsha period? (निम्नलिखित में से कौन सा हर्षोत्तर काल के स्रोतों में आमतौर पर
संदर्भित 'हुंडी' की प्रकृ ति को परिभाषित करता है?) (UPSC-Prelims-2020)
An advisory issued by the king to his A diary to be maintained for daily

subordinates (राजा द्वारा अपने अधीनस्थों accounts (दैनिक खातों के लिए रखी जाने
को जारी की जाने वाली सलाह) वाली एक डायरी)
A bill of exchange (विनिमय का एक पत्र/ An order from the feudal lord to his
बिल) subordinates (सामंती स्वामी से अपने
CORRECT ANSWER अधीनस्थों को जारी एक आदेश)
Solution Hide
The movement of goods during the Medieval period was facilitated by the growth of a
financial system which permitted easy transfer of money from one part of the country to
another. This was done using Hundis, which were instruments of credit or bills of exchange.
The Hundis was a letter of credit payable after a period at a discount.
So the Answer is C
Question 34
YOU DIDN'T ATTEMPT
Find correct statement(s) (सही कथन का पता लगाइए) (UPSC-Prelims-2020)

1. Commercial Paper’ is a short-term unsecured promissory note. ('वाणिज्यिक पत्र' एक
अल्पकालिक प्रतिभूति रहित वचन पत्र है।)
2. Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a
corporation. ('जमा प्रमाण पत्र (सर्टिफिके ट ऑफ डिपॉजिट)' भारतीय रिजर्व बैंक द्वारा एक निगम को जारी
किया गया एक दीर्घकालिक प्रपत्र है।)
3. Call Money’ is a short-term finance used for interbank transactions. ('शीघ्रावधि द्रव्य (कॉल
मनी)' एक अल्पकालिक वित्त है जिसका उपयोग इंटरबैंक लेनदेन के लिए किया जाता है।)
4. Zero-Coupon Bonds’ are the interest-bearing short-term bonds issued by the Scheduled
Commercial Banks to corporations. ('शून्य-कू पन बॉन्ड (जीरो-कू पन बॉन्ड)' अनुसूचित वाणिज्यिक
बैंकों द्वारा निगमों को जारी किए जाने वाले ब्याज वाले अल्पकालिक बॉन्ड हैं।)

2, 3 and 4 only (के वल 2, 3 और 4)
CORRECT ANSWER
Solution Hide
St1 is right: Commercial papers are debt instruments issued by corporations to generally
meet their short-term obligations. They are also unsecured, that is they are not backed or
secured by a particular asset. St2 is wrong: Certificate of Deposits are fixed income, short-
term financial instruments generally issued by commercial banks to individuals/ other lenders.
St3 is right: Call Money is a short term debt generally used by banks to lend and borrow
within themselves generally to meet short term obligations or shortfalls in reserve
requirements mandated by law.
St4 is wrong: Zero Coupon Bonds are not interest bearing instead they are issued at deep
discounts and redeemable at par on a future date.

Question 35
YOU DIDN'T ATTEMPT
Find correct about “Inflation-Indexed Bonds (IIBs)” in India (भारतीय अर्थव्यवस्था के सन्दर्भ में,
“मुद्रास्फीति-सहलग्न बॉन्ड (Inflation-Indexed Bonds (IIBs))" के क्या लाभ हैं ?) (Prelims-2022)
1. Government can reduce the coupon rates on its borrowing by way of IIBs. (सरकार IIBs के
रूप में अपने ऋणग्रहण पर कू पन दरों को कम कर सकती है।)
2. IIBs provide protection to the investors from uncertainty regarding inflation. (IIBs निवेशकों
को मुद्रास्फीति के बारे में अनिश्चितता से सुरक्षा प्रदान करते हैं।)
3. The interest received as well as capital gains on IIBs are not taxable. (IIBs पर प्राप्त ब्याज
और साथ ही साथ पूँजीगत लाभ कर योग्य नहीं होते।)
1 and 2 only (के वल 1 और 2)

2 and 3 only (के वल 2 और 3)
CORRECT ANSWER
1 and 3 only (के वल 1 और 3) 1, 2 and 3 (1, 2 और 3)
Solution Hide
St3 is wrong: The interest received as well as capital gains on Inflation-Indexed Bonds (IIBs)
are taxable.
so by elimination, the answer is A) only 1 and 3
Question 36
YOU DIDN'T ATTEMPT
Find correct statements about Convertible Bonds (परिवर्तनीय बांड के बारे में सही कथन का ज्ञात
कीजिए) (Prelims-2022)
1. As there is an option to exchange bond for equity, Convertible Bonds pay a lower rate of
interest. (क्योंकि ईक्विटी के लिए बांड का आदान-प्रदान करने का विकल्प है, परिवर्तनीय बांड ब्याज की
कम दर का भुगतान करते हैं।)
2. The option to convert to equity affords the bondholder a degree of indexation to rising
consumer prices. (ईक्विटी में बदलने का विकल्प बॉन्डधारक को बढ़ती उपभोक्ता कीमतों से सहलग्नता
(indexation) की एक मात्रा प्रदान करता है।)
Both 1 and 2 (1 और 2 दोनों)

Neither 1 nor 2 (न तो 1, न ही 2)
CORRECT ANSWER
Solution Hide
A convertible bond is a hybrid debt security or hybrid debt instrument that provides an
investor with a right or an obligation to exchange the bond for a predetermined number of
shares in the issuing company at certain times of a bond’s lifetime. It has both the features of
a debt instrument and equity.

St1 is right: Convertible bonds tend to offer a lower coupon rate or rate of return in exchange
for the value of the option to convert the bond into common stock. Investors will generally
accept a lower coupon rate on a convertible bond, compared with the coupon rate on an
otherwise identical regular bond, because of its conversion feature. This enables the issuer to
save on interest expenses, which can be substantial in the case of a large bond issue.
St2 is right: The option to convert to equity affords the bondholder a degree of indexation to
rising consumer prices as equity prices can differ widely from the given interest and the
difference in that can be used as a hedge for inflation.
Question 37
YOU DIDN'T ATTEMPT
Find correct statement about ‘IFC Masala Bonds' ('आईएफसी मसाला बांड' के बारे में सही कथन
ज्ञात कीजिए) (UPSC-Pre-2016)
1. The International Finance Corporation, which issues them, is an arm of the World Bank.
(इन्हें जारी करने वाला अंतर्राष्ट्रीय वित्त निगम, विश्व बैंक की एक शाखा है।)
2. They are rupee-denominated bonds and are a source of debt financing for the public &
private sector. (वे रुपये-मूल्यवर्ग के बांड हैं और सार्वजनिक और निजी क्षेत्र के लिए ऋण वित्तपोषण का
एक स्रोत हैं।)
Answer Code: (उत्तर हेतु कू ट)
Both 1 and 2 (1 और 2 दोनों)

Neither 1 nor 2 (न तो 1, न ही 2)
CORRECT ANSWER
Solution Hide
Masala Bonds are the bonds which are issued outside India by Indian Entities to raise capital.
These are usually used by corporations to raise funds from foreign investors.
St1 is right: The first Masala Bonds was issued by the International Finance Corporation (IFC)
in 2014. The IFC is an arm of the World Bank, other arms along it include International Bank
for Reconstruction and Development (IBRD), International Development Agency (IDA),
Multilateral Investment Guarantee Agency (MIGA), The International Centre for Settlement of
Investment Disputes (ICSID).
St2 is right: These bonds are issued in foreign markets but are denominated in Rupees. That is
their value is stated in Rupees and their repayment obligation is also in terms of Rupees. Due
to this the risk of currency exchange rate fluctuation is shifted to the investor. Both Public and
Private Sector entities can use them to raise funds for purposes such as Debt Financing.
Question 38
YOU DIDN'T ATTEMPT
Which one of the following is a viable alternative to term-loans for raising debt finance by
large publicly traded firms? (सार्वजनिक रूप से कारोबार करने वाली बड़ी फर्मों द्वारा ऋण वित्त जुटाने
के लिए निम्नलिखित में से कौन सा सावधि ऋण का व्यवहार्य विकल्प है?) (UPSC-IEnggS-2018)
Debentures (डिबेंचर)
Shares (शेयर)
CORRECT ANSWER

Asset loans (परिसंपत्ति ऋण) Gold loans (स्वर्ण ऋण)
Solution Hide
keyword is suggest another way to raise debt(loan). so Debentures are the viable alternative
to "term-loans" for raising debt finance by large publicly traded firms.
So the Answer is B
Question 39
YOU DIDN'T ATTEMPT
What does ‘Venture Capital’ mean? ('जोख़िम पूँजी (वेंचर कै पिटल)' का क्या अर्थ है?) (Asked in
UPSC-Pre-2014)
A long-term start-up capital

A short-term capital provided to provided to new entrepreneurs (नए
industries (उद्योगों को प्रदान की जाने वाली उद्यमियों को प्रदान की गई एक दीर्घकालिक
अल्पकालिक पूँजी) प्रारं भिक (स्टार्ट-अप) पूँजी)
CORRECT ANSWER
Funds provided for replacement and

Funds provided to industries at times
renovation of industries (उद्योगों के
of incurring losses (घाटे के समय उद्योगों
प्रतिस्थापन और नवीनीकरण के लिए प्रदान
को प्रदान की गई धनराशि)
की गई धनराशि)
Solution Hide
Venture capital is the capital invested in a project in which there is a substantial element of
risk, typically a new or expanding business. Start-up companies with a potential to grow need
a certain amount of investment. Wealthy investors like to invest their capital in such
businesses with a long-term growth perspective. This capital is known as venture capital and
the investors are called venture capitalists.
So the Answer is B
Question 40
YOU DIDN'T ATTEMPT
An individual investor who invests in the e-project usually during an early stage is (एक
व्यक्तिगत निवेशक जो आमतौर पर प्रारं भिक चरण के दौरान ई-प्रोजेक्ट में निवेश करता है, होता है-) (UPSC-
IES-2020)
corporate strategic investor (कॉर्पोरे ट

founder capital (पूंजी संस्थापक)
रणनीतिक निवेशक)
angel investor (एन्जल निवेशक)

venture capital (पूंजी उद्यम)
CORRECT ANSWER
Solution Hide

An individual investor who invests in the e-project usually during an early stage is an angel
investor. An angel investor is usually a high-net-worth individual who funds startups at the
early stages, often with their own money. Angel investing is often the primary source of
funding for many startups who find it more appealing than other, more predatory, forms of
funding.
So the Answer is C
Question 41
YOU DIDN'T ATTEMPT
In the parlance of financial investment, ‘Bear’ denotes (वित्तीय निवेश की भाषा में, 'मंदड़िया
(बियर)' का अर्थ क्या है?) [UPSC-CDS-2012]
an investor, who feels that the price

of a particular security is going to an investor, who expects the price of
fall. (एक निवेशक, जो महसूस करता है कि a particular share to rise. (एक निवेशक,
किसी विशेष प्रतिभूति की कीमत गिरने वाली जो किसी विशेष शेयर की कीमत बढ़ने की
है।) उम्मीद करता है।)
CORRECT ANSWER
a shareholder, who has an interest in

any lender, whether by making a
a company, financially or otherwise.
loan or buying a bond. (ऋण देकर या
(एक शेयरधारक, जिसकी किसी कं पनी में
बांड खरीदकर बनने वाला एक ऋणदाता।)
वित्तीय या अन्य रूप से रूचि है।)
Solution Hide
‘Bear’ denotes an investor who feels that the price of a particular security is going to fall. In
market terms, It is the time period when a stock market follows a downward trend or a period
of falling stock prices.
On the other hand, a bull is an investor who believes that the price of a particular security will
go upward.
So the Answer is A
Question 42
YOU DIDN'T ATTEMPT
Which of the following statements is/ are correct? (निम्नलिखित में से कौन-सा/से कथन सही है/हैं?)
[UPSC-CDS-2012-I]
1. NIFTY is based upon 50 firms in India. (निफ्टी, भारत में 50 फर्मों पर आधारित है।)
2. NIFTY is governed and regulated by the Reserve Bank of India. (निफ्टी को भारतीय रिजर्व बैंक
द्वारा शासित और विनियमित किया जाता है।)
3. NIFTY is the stock index of Bombay Stock Exchange. (निफ्टी, बॉम्बे स्टॉक एक्सचेंज का स्टॉक
इंडेक्स है।)
Answer Codes: (उत्तर हेतु कू ट:)
CORRECT ANSWER

Solution Hide
St1 is right: NIFTY is a stock market index which represents 50 largest Indian companies listed
in the National Stock Exchange (NSE).
St2 is wrong: NIFTY is owned and regulated by NSE Indices Limited. NSE Indices is India's
specialised company focused upon the index as a core product.
St3 is wrong: NIFTY is the stock index of the National Stock Exchange (NSE). The famous
stock index of Bombay Stock Exchange is the SENSEX.
Question 43
YOU DIDN'T ATTEMPT
Find correct statement(s): (सही कथन का पता लगाइए:) (Asked in Prelims-2021)

1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of
India Debt Bonds’ in the primary market. (खुदरा निवेशक, डीमैट खाते के माध्यम से प्राथमिक
बाजार में 'ट्रेजरी बिल' और 'भारत सरकार ऋण बांड' में निवेश कर सकते हैं।)
2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading
platform of the Reserve Bank of India. (बातचीत से तय लेनदेन प्रणाली-ऑर्डर मिलान (NDS-OM)
सरकारी प्रतिभूतियों में खरीद बिक्री करने के लिए रिजर्व बैंक द्वारा बनाया गया मंच है।)
3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India
and the Bombay Stock Exchange. (CDSL का रिजर्व बैंक और बॉम्बे स्टॉक एक्सचेंज द्वारा संयुक्त रूप
से प्रवर्तन किया जाता है।)

CORRECT ANSWER
Solution Hide
St1 is right: As per the recent guidelines of the Reserve Bank of India (RBI), the retail investors
through Demat account can invest in Treasury Bills and Government of India Debt Bonds in
the primary market. The retail investors are also allowed to invest directly in the government's
secondary bond market by opening gilt accounts.
St2 is right: The Negotiated Dealing System -Order Matching (NDS-OM) was introduced by
the Reserve Bank of India (RBI) in 2005. It is an electronic, screen-based, anonymous, order-
driven trading system for dealing in government securities.
St3 is wrong: The Central Depository Services Limited (“CDSL”) was founded in 1999 to fulfill
convenient, dependable and secured depository services. CDSL was initially promoted by the
Bombay Stock Exchange (BSE) which thereafter divested its stake to leading banks.
Question 44
YOU DIDN'T ATTEMPT
With reference to 'Financial Stability and Development Council (FSDC), consider the
following statements: (वित्तीय स्थिरता और विकास परिषद (FSDC) के संदर्भ में निम्नलिखित कथनों पर
विचार कीजिए:) (Pre-2016)
1. It is an organ of NITI Aayog. (यह नीति आयोग का अंग है।)
2. It is headed by the Union Finance Minister (इसकी अध्यक्षता कें द्रीय वित्त मंत्री करते हैं)
3. It monitors macro-prudential supervision of the economy. (यह अर्थव्यवस्था के समष्टि-सविवेक
पर्यवेक्षण का अनुवीक्षण करता है।)
Which of the statements given above is/are correct? (ऊपर दिए गए कथनों में से कौन-सा/से सही है/
हैं?)

1, 2 and 3 (1, 2 और 3)
CORRECT ANSWER
Solution Hide
The Financial Stability and Development Council (FSDC) was set up in 2016. It was primarily
established to coordinate the activities of various financial regulatory authorities.
St1 is wrong: FSDC was constituted by an Executive Order of the Union Government as a non-
statutory apex body under the Ministry of Finance. It is not an organ of the NITI Aayog.
St2 is right: The Union Finance Minister is the Chairman of the Financial Stability and
Development Council.
St3 is right: The four primary functions of the Council consist of monitoring the
macroprudential supervision of the economy, focus on financial literacy, strengthening of
mechanisms of financial development and stability, addressing the coordination issues of
various regulators.
Question 45
YOU DIDN'T ATTEMPT
Which one of the following terms is used in Economics to denote a technique for avoiding a
risk by making a counteracting transaction? (निम्नलिखित में से किस शब्द का प्रयोग अर्थशास्त्र में
प्रतिरोधी संव्यवहार द्वारा जोखिम के परिहार की तकनीक को निरूपित करने के लिए किया जाता है?)
[UPSC-CDS-2016-I]
Hedging (हेजिंग करना)

Dumping (बाजार पाटना अर्थात डम्पिंग)
CORRECT ANSWER
Discounting (बट्टेदारी करना अर्थात Deflating (अवस्फीति करना अर्थात

डिस्काउंटिंग) डिफ्लेटिंग)
Solution Hide
Hedging technique is used for avoiding a risk by making a counteracting transaction.
Dumping: Dumping is the export of goods to other countries at a price lower than their own
country. It is done to capture the market or create monopoly.
Discounting: It is the process of determining the present value of a payment that is to be
received in the future date.
Deflating: It is the reduction of the overall price level in an economy.
So the Answer is B
Question 46
YOU DIDN'T ATTEMPT

Which of the following is issued by registered foreign portfolio investors to overseas investors
who want to be part of the Indian stock market without registering themselves directly?
(पंजीकृ त विदेशी पोर्टफोलियो निवेशकों द्वारा उन विदेशी निवेशकों को, जो स्वयं को सीधे पंजीकृ त कराए
बिना भारतीय स्टॉक बाजार का हिस्सा बनना चाहते हैं, निम्नलिखित में से क्या जारी किया जाता है?) (Pre19-
SetA Q67)
Certificate of Deposit (जमा प्रमाण-पत्र) Commercial Paper (वाणिज्यिक पत्र)
Participatory Note (सहभागिता पत्र

Promissory Note (वचन-पत्र (प्रॉमिसरी
(पार्टिसिपेटरी नोट))
नोट))
CORRECT ANSWER
Solution Hide
The registered portfolio investors issue participatory notes to overseas investors who want to
be a part of the Indian stock market without registering themselves directly.
Participatory note is a derivative instrument issued in foreign jurisdictions, by a SEBI
registered Foreign Institutional Investor (FII) against underlying Indian securities. The
underlying Indian security instrument may be equity, debt, derivatives or may even be an
index.
Additional Information:
Certificate of Deposits: It is a negotiable money market instrument and issued in
dematerialised form or as a usance Promissory Note, for funds deposited at a bank or other
eligible financial institution for a specified time period.
Commercial Paper: It is an unsecured money market instrument issued in the form of a
promissory note.
Promissory Note: It is a financial instrument in which one party (the issuer) promises to pay
the second party (the payee) a determined sum of money at a fixed or future date on
demand of the payee.
Question 47
YOU DIDN'T ATTEMPT
Consider the following statements : (निम्नलिखित कथनों पर विचार कीजिए:)[CSP23-SET-A-Q021]

Statement-I : (कथन-I):
Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to
their investors is exempted from tax, but the dividend is taxable. (आधारिक संरचना निवेश न्यासों
(InvITs) में जमा (डिपॉजिट) से हुई ब्याज की आय, जो उनके निवेशकों में वितरित की जाती है, कर से छू ट है, किन्तु
लाभांश कर योग्य है।)
Statement-II : (कथन-II)
InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002'. ('वित्तीय संपत्तियों का प्रतिभूतिकरण और
पुनर्गठन तथा प्रतिभूति हित का प्रवर्तन अधिनियम, 2002' के अधीन InvITs को ऋणी के रूप में मान्यता प्राप्त है।)
Which one of the following is correct in respect of the above statements? (उपर्युक्त कथनों के बारे
में, निम्नलिखित में से कौन-सा एक सही है?)
Both Statement-I and Statement-II

Both Statement-I and Statement-II
are correct and Statement-II is not
are correct and Statement-II is the
the correct explanation for
correct explanation for Statement-I
Statement-I (कथन-I और कथन-II दोनों
(कथन-I और कथन-II दोनों सही हैं तथा
सही हैं तथा कथन-II, कथन-I की सही व्याख्या
कथन-II, कथन-I की सही व्याख्या है)
नहीं है)
Statement-I is incorrect but

Statement-II is correct (कथन-I गलत है

Statement-I is correct but किन्तु कथन-II सही है)
Statement-II is incorrect (कथन-I सही है CORRECT ANSWER
किन्तु कथन-II गलत है)
Solution Hide
income from INVITS is subjected to income tax, does not matter whether you have earned
interest or dividend. st1 is wrong so Thus, Statement is wrong and by elimination of options
containing this statement, we arrive at the correct answer [D].
Statement-II is also correct because InvITs are recognized as borrowers under the
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (SARFAESI Act). This means that InvITs can raise funds by issuing debt securities,
and the lenders can take possession of the assets of the InvITs in case of default.
Question 48
YOU DIDN'T ATTEMPT
Consider the following markets : (निम्नलिखित बाज़ारों पर विचार कीजिए:)[CSP23-SET-A-Q025]

1. Government Bond Market (सरकारी बॉन्ड बाज़ार)
2. Call Money Market (शीघ्रावधि द्रव्य बाज़ार (कॉल मनी मार्के ट))
3. Treasury Bill Market (कोषपत्र बाज़ार (ट्रेज़री बिल मार्के ट))
4. Stock Market (स्टॉक बाज़ार)
How many of the above are included in capital markets? (पूँजी बाज़ार में, उपर्युक्त में से कितने शामिल
है/हैं?)
Only two (के वल दो)

Only one (के वल एक)
CORRECT ANSWER
Only three (के वल तीन) All four (सभी चार)
Solution Hide
A capital market is a financial market in which long-term debt or equity-backed securities are
bought and sold, in contrast to a money market where short-term debt is bought and sold.
among the given options only st1 and st4 are associated with it. Whereas st2 and st3 deal
with short-term Securities. so Answer is B: only two of them are part of Capital markets.
Question 49
YOU DIDN'T ATTEMPT
In the context of finance, the term ‘beta’ refers to (वित्त के संदर्भ में 'बीटा' किसे निर्दिष्ट करता है?)
[CSP23-SET-A-Q073]
the process of simultaneous buying an investment strategy of a portfolio

and selling of an asset from different manager to balance risk versus
platforms (अलग-अलग प्लेटफार्मों से, साथ reward (किसी पोर्टफोलियो प्रबंधक की,
साथ किसी परिसंपत्ति को खरीदने और बेचने जोखिम और प्रतिफल के बीच संतुलित लाने
की प्रक्रिया) की निवेश कार्यनीति)

a numeric value that measures the
a type of systemic risk that arises fluctuations of a stock to changes in
where perfect hedging is not possible the overall stock market (एक
(एक प्रकार का व्यवस्थागत जोखिम, जो वहाँ संख्यात्मक मान, जो पूरे स्टॉक बाज़ार में होने
उत्पन्न होता है जहां पूर्ण प्रतिरक्षा संभव नहीं है) वाले परिवर्तनों के प्रति किसी स्टॉक के
विचलनों को मापता है)
CORRECT ANSWER
Solution Hide
The correct answer is (d). Beta is a numeric value that measures the fluctuations of a stock to
changes in the overall stock market. A beta of 1.0 means that the stock moves in the same
direction as the market. A beta of greater than 1.0 means that the stock moves more than the
market.
Question 50
YOU DIDN'T ATTEMPT
Company wants to get new production machineries but without the risk of machines
becoming obsolete then what type of loan company should get?(कं पनी नवीन उत्पादन मशीनरी
प्राप्त करना चाहती है लेकिन मशीनों के अप्रचलित होने के जोखिम के बिना कं पनी को किस प्रकार का ऋण
मिलना चाहिए?)
Trade Credit(व्यापार ऋण) Equipment loan(उपकरण ऋण)
Lease Finance (लीज फाइनेंस)

Hybrid Loan(हाइब्रिड ऋण)
CORRECT ANSWER
Solution Hide
Explanation: Lease Finance suitable here
Therefore, the answer is D.
Question 51
YOU DIDN'T ATTEMPT
How many of the following are examples of working capital? (निम्नलिखित में से कितने कार्यशील
पूंजी के उदाहरण हैं?)
1. Money required for land purchase(भूमि क्रय हेतु धन की आवश्यकता है)
2. Money required for machinery purchase(मशीनरी खरीद हेतु धन की आवश्यकता)
3. Money required for paying salaries to workers (कर्मचारियों को वेतन देने हेतु धन की आवश्यकता)
4. Money required for buying advertisement slots in Newspaper(समाचार पत्र में विज्ञापन स्लॉट
खरीदने हेतु धन की आवश्यकता है)
Answer Codes(उत्तर हेतु कू ट)
only two of these(इनमें से के वल दो)

only one of these(इनमें से के वल एक)
CORRECT ANSWER
only three of these(इनमें से के वल तीन) All four of these(ये चारों)

Solution Hide
Explanation: money for salary and ads = working capital. Others are fixed capital.
Therefore, the answer is B) only two of these.
Question 52
YOU DIDN'T ATTEMPT
How many of the following are liabilities for the company? (निम्नलिखित में से कितनी कं पनी की
देनदारियां हैं?)
1. Goodwill(साख)
2. Retained Earning(प्रतिधारित आय)
3. Accounts receivable(प्राप्य खाते)
4. Accounts payable (देय खाते)
only one of these(इनमें से के वल एक)

only two of these(इनमें से के वल दो)
CORRECT ANSWER
only three of these(इनमें से के वल तीन) All four of these(ये चारों)
Solution Hide
The correct answer is A) only one of these
1) **Goodwill:** Goodwill is an intangible asset and not a liability for the company.
2) **Retained Earnings:** Retained earnings represent the portion of net income which is
retained by the company rather than distributed to shareholders as dividends. It is a part of
shareholders' equity, not a liability.
3) **Accounts Receivable:** Accounts receivable are amounts that a company has a right to
collect because it has sold goods or services on credit to a customer. It is an asset, not a
liability.
4) **Accounts Payable:** Accounts payable are amounts that a company owes to its suppliers
for goods or services received on credit. It is a liability since the company has an obligation to
pay these amounts in the future.
Therefore, the answer is A) only one of these
Question 53
YOU DIDN'T ATTEMPT
Find correct about Retained Earnings(प्रतिधारित आय के बारे में सही जानकारी प्राप्त कीजिए)
1. it is the amount of money given to the shareholders from the profit.(यह शेयरधारकों को लाभ
से दी जाने वाली धनराशि है।)
2. it is a source of internal finance for the company(यह कं पनी के लिए आंतरिक वित्त का स्रोत है)
Answer Codes:(उत्तर हेतु कू ट)

only 2(के वल 2)
CORRECT ANSWER
both 1 and 2(1 और 2 दोनों) neither 1 nor 2(न तो 1, न ही 2)
Solution Hide
The correct answer is **B) only 2**:
**Retained Earnings:** Retained earnings are the portion of a company's net income that is
retained (kept) by the company rather than distributed as dividends to shareholders.
Therefore, it is a source of internal finance for the company, used for reinvesting in the
business, paying off debts, or making acquisitions.
Option 1 is incorrect because retained earnings are not directly given to shareholders; rather,
they are reinvested in the company for various purposes.
Question 54
YOU DIDN'T ATTEMPT
Find correct about Inter Corporate Deposits:(अंतर-कॉर्पोरे ट जमाओं के बारे में सही जानकारी प्राप्त
कीजिए:)
1. It is a loan made by a company with another company.(यह एक कं पनी द्वारा दू सरी कं पनी के
साथ किया गया ऋण है।)
2. It is a short-term debt.(यह एक अल्पकालिक ऋण है।)
3. It is unsecured in nature.(यह असुरक्षित प्रकृ ति का है।)
only 1 and 2(के वल 1 और 2) only 1 and 3(के वल 1 और 3)
All three(ये तीनों)

only 2 and 3(के वल 2 और 3)
CORRECT ANSWER
Solution Hide
Explanation: They are unsecured short-term loan made by a company with another
company. all 3 are correct
Question 55
YOU DIDN'T ATTEMPT
How many of the following are examples of hybrid financing instrument?(निम्नलिखित में से
कितने हाइब्रिड वित्तपोषण साधन के उदाहरण हैं?)
1. Optionally fully convertible debentures (OFCD).(वैकल्पिक पूर्णतः परिवर्तनीय ऋणपत्र (OFCD)।)
2. Foreign Currency Convertible Bonds (FCCBs):(विदेशी मुद्रा परिवर्तनीय बांड (FCCBs))
3. COCO Bonds(COCO बांड)
4. Surety Bonds(प्रतिभू बांड)

only one of these(इनमें से के वल एक) only two of these(इनमें से के वल दो)
only three of these(इनमें से के वल तीन)

All four of these(ये चारों)
CORRECT ANSWER
Solution Hide
Explanation: st1,2,3 are examples. Surety bond is not example of hybrid instruments.
Therefore, the answer is C.
Question 56
YOU DIDN'T ATTEMPT
Who among the following has set up a portal to give refund ₹10,000 to the investors due in
Sahara OFCD scam?(निम्नलिखित में से किसने सहारा OFCD घोटाले में निवेशकों को ₹10,000 का
रिफं ड देने के लिए एक पोर्टल स्थापित किया है?)
DICGC(डीआईसीजीसी) RBI(आरबीआई)
Ministry of Cooperation(सहकारिता
मंत्रालय) SEBI(सेबी)
CORRECT ANSWER
Solution Hide
Explanation: Ministry of Cooperation → Central Registrar of Cooperative Societies (CRCS, a
statutory body
under Multi-State Co-operative Societies Act 2002) → CRCS - SAHARA REFUND PORTAL
setup.
Question 57
YOU DIDN'T ATTEMPT
What is Share warrant?(शेयर वारं ट क्या है?)
It is the order issued by SEBI to

It is the order passed by SEBI
confiscate the shares of persons who
allowing a company to issue IPO.(यह
committed insider trading.(सेबी द्वारा
सेबी द्वारा पारित आदेश है जो किसी कं पनी
इनसाइडर ट्रेडिंग करने वाले व्यक्तियों के
को आईपीओ जारी करने की अनुमति देता
शेयर जब्त करने का आदेश जारी किया गया
है।)
है।)
It is a document that entitles the

holder to buy shares in the future at
specified price. (यह एक दस्तावेज है जो

धारक को भविष्य में निर्दिष्ट कीमत पर शेयर None of the above(उपरोक्त में से कोई
खरीदने का अधिकार देता है।) नहीं)
CORRECT ANSWER
Solution Hide
Explanation: It is a document that entitles the holder to buy shares in the future at specified
price.
Question 58
YOU DIDN'T ATTEMPT
What is a multi-bagger share?(मल्टी-बैगर शेयर क्या है?)
A share issued by a company for A share that experiences a

financing multiple projects.(एक कं पनी significant increase in value.(शेयर
द्वारा कई परियोजनाओं के वित्तपोषण के लिए जिसके मूल्य में उल्लेखनीय वृद्धि हुई है।)
जारी किया गया शेयर।) CORRECT ANSWER
A share issued by a multinational

None of the above(उपरोक्त में से कोई
company.(एक बहुराष्ट्रीय कं पनी द्वारा जारी
नहीं)
किया गया शेयर।)
Solution Hide
Explanation: A multi-bagger share refers to a stock that experiences a significant increase in
value, resulting in substantial gains for investors. The term "multi-bagger" implies that the
investment has multiplied several times over, indicating impressive returns. For example, if an
investor buys a stock at $10 per share and it later reaches $100 per share, it would be
considered a 10-bagger because the investment has increased tenfold.
Therefore, the answer is B.
Question 59
YOU DIDN'T ATTEMPT
A share that is available for purchase in the secondary market is called _ _ _ _.(शेयर जो
द्वितीयक बाज़ार में खरीद के लिए उपलब्ध होता है उसे _ _ _ _ कहा जाता है।)
1. Restricted Stock(प्रतिबंधित स्टॉक)
2. Floating Stock(फ्लोटिंग स्टॉक)
only 1 (के वल 1)
CORRECT ANSWER
Solution Hide

Explanation: A share that is available for purchase in the secondary market is called a
Floating stock.
Question 60
YOU DIDN'T ATTEMPT
What are the general properties of a share of a large cap company?(किसी लार्ज कै प कं पनी के
शेयर की सामान्य विशेषताएँ क्या हैं?)
1. It has high level of risk to the investor.(इसमें निवेशक के लिए जोखिम का स्तर अधिक है।)
2. It has high level of liquidity. (इसमें तरलता का स्तर उच्च होता है।)
CORRECT ANSWER
Solution Hide
Explanation: st1 wrong: it has Low risk. St2 right.
Question 61
YOU DIDN'T ATTEMPT
How many of the following companies are suitable for an investor wanting low level of risk?
(निम्नलिखित में से कितनी कं पनियाँ निम्न स्तर का जोखिम चाहने वाले निवेशक के लिए उपयुक्त हैं?)
1. Company with low EBITDA(कम EBITDA वाली कं पनी)
2. Company with high leverage ratio (उच्च उत्तोलन अनुपात वाली कं पनी)
3. Company with low ROCE (कम ROCE वाली कं पनी)
4. Company with low EPS(कम EPS वाली कं पनी)
None of these(इनमें से कोई नहीं)

only three of these(इनमें से के वल तीन)
CORRECT ANSWER
Solution Hide
Explanation: none of the options provided are suitable for an investor wanting a low level of
risk.
**1) Company with low EBITDA:** Low Earnings Before Interest, Taxes, Depreciation, and
Amortization (EBITDA) might indicate weak operating performance and is generally
considered a higher risk factor.

**2) Company with high leverage ratio:** A high leverage ratio (high debt relative to equity)
can indicate higher financial risk for the company, especially if economic conditions worsen.
**3) Company with low ROCE:** A low Return on Capital Employed (ROCE) may suggest
inefficiency or lack of profitability, indicating higher risk.
**4) Company with low EPS:** Low Earnings Per Share (EPS) can indicate lower profitability,
which might be less attractive to investors seeking low risk.
the correct response is **"none of the above"** when considering companies suitable for an
investor wanting a low level of risk. Therefore, the answer is D.
Question 62
YOU DIDN'T ATTEMPT
Amortisation is a concept associated with(परिशोधन एक अवधारणा है जो इससे जुड़ी है)
Intangible assets(अमूर्त संपत्ति)

Physical assets(भौतिक संपत्ति)
CORRECT ANSWER
Secured Loans(सुरक्षित ऋण) Unsecured Loans(असुरक्षित ऋण)
Solution Hide
Explanation: Intangible assets are non-physical assets that lack a physical substance but hold
value for a company. Examples include patents, copyrights, trademarks, and goodwill. Unlike
physical assets (such as machinery or buildings), intangible assets do not have a finite
physical life, but their economic usefulness diminishes over time. Amortisation is a concept
associated with this decrease in value.
Question 63
YOU DIDN'T ATTEMPT
Offer for Sale means:(विक्रय प्रस्ताव का अर्थ है:)
Promoter of a company selling his

Liquidation of a bankrupt company. shares to others(किसी कं पनी का प्रवर्तक
(किसी दिवालिया कं पनी का परिसमापन) दू सरों को अपने शेयर बेच रहा है)
CORRECT ANSWER
Selling shares of a company directly Selling shares of a company to

to institutional investors without employees through an employee
offering them to the public.(किसी stock ownership plan (ESOP).(कर्मचारी
कं पनी के शेयर को जनता को पेश किए बिना स्टॉक स्वामित्व योजना (ESOP) के माध्यम से
सीधे संस्थागत निवेशकों को बेचना।) कर्मचारियों को किसी कं पनी के शेयर बेचना।)
Solution Hide

Explanation: In an Offer for Sale (OFS), the promoter or founder of a company sell their
shares through a stock exchange platform.
Question 64
YOU DIDN'T ATTEMPT
Which of the following may result into equity dilution for an existing shareholder?(निम्नलिखित
में से किसके परिणामस्वरूप मौजूदा शेयरधारक की इक्विटी कमजोर हो सकती है?)
1. Company issuing FPO to new investors.(कं पनी नए निवेशकों को FPO जारी करती है।)
2. Owners of Optionally Fully Convertible Debentures (OFCD) converting their debt-
instrument into equity.(वैकल्पिक रूप से पूर्ण परिवर्तनीय ऋणपत्र (OFCD) के मालिक अपने ऋण-
साधन को इक्विटी में परिवर्तित कर रहे हैं।)
only 1 (के वल 1) only 2(के वल 2)
both 1 and 2(1 और 2 दोनों)

neither 1 nor 2(न तो 1, न ही 2)
CORRECT ANSWER
Solution Hide
Explanation:
1) **Company issuing FPO to new investors:** When a company issues a Follow-on Public
Offering (FPO) to new investors, it typically involves the issuance of new shares to the public.
This increases the total number of outstanding shares in the market. Existing shareholders'
ownership percentage in the company reduces, leading to equity dilution.
2) **Owners of Optionally Fully Convertible Debentures (OFCD) converting their debt-

instrument into equity:** When owners of OFCDs convert their debt instruments into equity
shares, new shares are issued to them. This also increases the total number of outstanding
shares, reducing the ownership percentage of existing shareholders and causing equity
dilution.
Therefore, the answer is The correct answer is **C) both 1 and 2.**.
Question 65
YOU DIDN'T ATTEMPT
Share Swapping may be conducted during _ _ .(शेयर स्वैपिंग _ _ के दौरान आयोजित की जा सकती
है।
1. Liquidation of a bankrupt company.(किसी दिवालिया कं पनी का परिसमापन।)
2. Merger of two companies(दो कं पनियों का विलय)
CORRECT ANSWER
both 1 and 2(1 और 2 दोनों) neither 1 nor 2( न तो 1, न ही 2)

Solution Hide
Explanation: The correct answer is **B) only 2.**
Share swapping is typically conducted during the **merger of two companies** or in other
corporate transactions like acquisitions or consolidations. It involves the exchange of shares
of one company for shares of another company as part of the deal. This allows shareholders
of the merging or acquired company to become shareholders of the new, combined entity.
Share swapping is not typically associated with the **liquidation of a bankrupt company**;
instead, in such cases, the company's assets are typically sold to pay off creditors, and the
shareholders often receive little to nothing after the debt obligations are settled.
Question 66
YOU DIDN'T ATTEMPT
Which of the following will result in an immediate increase in the value of an investor’s
portfolio?(निम्नलिखित में से किसके परिणामस्वरूप किसी निवेशक के पोर्टफोलियो के मूल्य में तत्काल
वृद्धि होगी?)
1. Share splitting(शेयर बँटवारा)
2. Bonus Share issuance(बोनस शेयर निर्गमन)
CORRECT ANSWER
Solution Hide
Explanation: The correct answer is
1) **Share splitting:** Share splitting, also known as stock split, does not result in an
immediate increase in the value of an investor's portfolio. In a stock split, the number of
shares owned by each investor increases, but the total value of the investment remains the
same. For example, in a 2-for-1 stock split, an investor who owned 100 shares before the split
would own 200 shares after the split, but the price per share would be halved, so the total
value of the investment remains unchanged.
2) **Bonus Share issuance:** When a company issues bonus shares to its existing
shareholders, it does not change the total value of the investor's holdings. However, it
increases the number of shares the investor holds without any additional cost. This can be
viewed as an increase in the value of the investor's portfolio in terms of the number of shares
owned, although the overall market value of the investment does not change immediately
due to the issuance of bonus shares.
Question 67
YOU DIDN'T ATTEMPT

How many of the following are examples of direct listing?(निम्नलिखित में से कितने प्रत्यक्ष
सूचीकरण के उदाहरण हैं?)
1. issuance of ADR(एडीआर जारी करना)
2. issuance of GDR (जीडीआर जारी करना)
3. issuance of Bharat-DR(भारत-डीआर जारी करना)
None of these(इनमें से कोई नहीं)

only three of these(सभी तीन)
CORRECT ANSWER
Solution Hide
Explanation: all of the examples ‘indirect listing’.
Therefore, the answer is D none of these.
Question 68
YOU DIDN'T ATTEMPT
Who among the following protects the investor from the fear of theft or fire of his paper-
shares?(निम्नलिखित में से कौन निवेशक को उसके पेपर-शेयरों की चोरी या आग लगने के डर से बचाता है?)
1. Depositories(डिपॉजिटरी)
2. Central Counterparties (CCPs)(कें द्रीय प्रतिपक्ष (CCPs))
CORRECT ANSWER
Solution Hide
Explanation:
1) **Depositories:** Depositories are financial institutions that hold securities (including shares)
in electronic form on behalf of investors. They provide a safe and secure way to store and
manage investors' securities, protecting them from risks such as theft or fire. Investors'
holdings are recorded electronically, reducing the need for physical paper certificates and
enhancing security.
2) **Central Counterparties (CCPs):** CCPs are entities that facilitate trading in financial
instruments by acting as an intermediary between buyers and sellers. While CCPs play a
crucial role in ensuring the smooth functioning of financial markets, they do not protect
investors from the physical risks associated with paper-share certificates; that role is primarily
fulfilled by depositories.
Therefore, the answer is The correct answer is **A) only 1.**
Question 69
YOU DIDN'T ATTEMPT

If the price movement of an asset is not correlated with the general trend in SENSEX, then its
Beta value will be:(यदि किसी परिसंपत्ति का मूल्य परिवर्तन सेंसेक्स में सामान्य प्रवृत्ति से संबंधित नहीं है, तो
इसका बीटा मूल्य होगा:)
Zero(शून्य)
Negative(नकारात्मक)
CORRECT ANSWER
Positive(सकारात्मक) Unpredictable(अप्रत्याशित)
Solution Hide
Explanation: If the price movement of an asset is not correlated with the general trend in
SENSEX (or any market index), its Beta value would be zero, indicating no correlation with the
market movements. Beta measures the sensitivity of an asset's returns concerning the overall
market movements. A Beta of zero implies no correlation between the asset's returns and the
market's returns.
Therefore, the answer is B) Zero.
Question 70
YOU DIDN'T ATTEMPT
When investor compares the balance sheets of two companies before purchasing their
shares, such analysis is called _ _ _ .(जब निवेशक दो कं पनियों के शेयर खरीदने से पहले उनकी बैलेंस
शीट की तुलना करता है, तो ऐसे विश्लेषण को _ _ _ कहा जाता है।)
1. fundamental analysis(मौलिक विश्लेषण)
2. technical analysis(तकनीकी विश्लेषण)
CORRECT ANSWER
Solution Hide
Explanation:
When an investor compares the balance sheets of two companies before purchasing their
shares, such analysis is called **fundamental analysis**. Fundamental analysis involves
evaluating a company's financial statements, earnings, dividends, and other indicators to
assess its intrinsic value and investment potential. Technical analysis, on the other hand,
involves analyzing historical stock-charts price and volume data to predict future price
movements and is not related to balance sheet comparisons.
The correct answer is: **A) only 1**
Question 71
YOU DIDN'T ATTEMPT

Which of following adjectives can be used to describe a portfolio containing high risk high
return type assets? (उच्च जोखिम उच्च रिटर्न प्रकार की परिसंपत्तियों वाले पोर्टफोलियो का वर्णन करने के लिए
निम्नलिखित में से किस विशेषण का उपयोग किया जा सकता है?)
Aggressive(आक्रामक)
Conservative(रूढ़िवादी)
CORRECT ANSWER
Balanced(संतुलित) Irrational (अतार्कि क)
Solution Hide
Correct Answer: B) Aggressive
The term **"Aggressive"** is often used to describe a portfolio containing high-risk, high-
return type assets. An aggressive portfolio typically involves investments in assets with the
potential for high returns, but it also comes with higher levels of risk. Conservative and
balanced portfolios, on the other hand, tend to prioritize lower risk and stability. "Irrational" is
not a standard term used to describe a type of investment portfolio. Therefore, the answer is
B.
Question 72
YOU DIDN'T ATTEMPT
What is Arbitrage?(आर्बिट्रेज क्या है?)
A method used for forecasting stock

A type of investment strategy that
prices based on historical data and
involves high-risk speculative
market trends.(ऐतिहासिक डेटा और
trading.(एक प्रकार की निवेश रणनीति
बाज़ार के रुझानों के आधार पर स्टॉक की
जिसमें उच्च जोखिम वाला सट्टा व्यापार
कीमतों का पूर्वानुमान लगाने के लिए उपयोग
शामिल होता है।)
की जाने वाली एक विधि।)
The process of buying and selling

The practice of buying and holding securities simultaneously in different
securities for a long-term investment markets to take advantage of price
horizon.(लंबी अवधि के निवेश क्षितिज के differences.(मूल्य अंतर का लाभ उठाने के
लिए प्रतिभूतियों को खरीदने और रखने की लिए विभिन्न बाजारों में एक साथ प्रतिभूतियों
प्रणाली।) को खरीदने और बेचने की प्रक्रिया।)
CORRECT ANSWER
Solution Hide
Correct Answer: D
Explanation: The process of buying and selling securities simultaneously in different markets
to take advantage of price differences. Therefore, the answer is D.
Question 73
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Consider the following statements (निम्नलिखित कथनों पर विचार कीजिए): [PYQ-Prelims-2005]:

1. Sensex is based on 50 of the most important stocks available on the Bombay stock
Exchange (BSE).(सेंसेक्स बॉम्बे स्टॉक एक्सचेंज (BSE) पर उपलब्ध 50 सबसे महत्वपूर्ण शेयरों पर आधारित
है।)
2. For calculating the Sensex, the stock are assigned weightage.(सेंसेक्स की गणना के लिए स्टॉक
को वेटेज दिया जाता है।)
3. New York Stock Exchange is the oldest stock exchange in the world.(न्यूयॉर्क स्टॉक एक्सचेंज
विश्व का सबसे पुराना स्टॉक एक्सचेंज है।)
Which of the statements given above is/are correct?(उपर्युक्त कथनों में से कौन-सा/से सही है/हैं?)
2 only(के वल 2)
1 and 3(1 और 3)
CORRECT ANSWER
2 and 3(2 और 3) none(कोई नहीं)
Solution Hide
Explanation: st1 wrong- 30 stocks monitored. st3 wrong oldest is Amsterdam. st2 is right.
SENSEX is a weighed average of 30 stocks.
Therefore, the answer is A only 2 correct.
Question 74
YOU DIDN'T ATTEMPT
Debenture holders of a company are its _ _ _ (किसी कं पनी के ऋणपत्र धारक उसके _ _ _ होते हैं।).
[PYQ-Prelims-2003]
creditors(लेनदार)
shareholders(शेयरधारक)
CORRECT ANSWER
debtors(देनदार) directors(निदेशक)
Solution Hide
Explanation: they're creditors to the company.
Question 75
YOU DIDN'T ATTEMPT
In India which of the following is/are regulated by the SEBI? भारत में निम्नलिखित में से कौन सा है/
सेबी द्वारा विनियमित किया जाता है? (PYQ-Prelims-2010)
Currency Exchange only (के वल मुद्रा Commodities Futures Trading only

विनिमय) (कमोडिटीज फ्यूचर्स ट्रेडिंग के वल)
Both Commodities Futures and

Equity Futures Trading (दोनों

Equity Futures Trading only (इक्विटी कमोडिटीज फ्यूचर्स और इक्विटी फ्यूचर्स
फ्यूचर्स ट्रेडिंग के वल) ट्रेडिंग)
CORRECT ANSWER
Solution Hide
Correct Answer: D
Explanation: The Securities and Exchange Board of India (SEBI) regulates both commodities
futures trading and equity futures trading in India. So the answer is (d)
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QUIZ-5 (Q+S) 2024-25 Mrunal EcoPCB10 KING R QUEEN P

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FREE BY KING R QUEEN P [Help Others God Will Help You]

FREE BY KING R QUEEN P [Help Others God Will Help You]

TReDS is a mechanism through which _ _ _: (ट्र्रीडस एक तंत्र है जिसके माध्यम से _ _ _)

Banks report bad loans data to RBI

MSMEs borrow money for short term

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Buffer amount for the repayment of

Penalties levied on errant banks

A is true but R is false

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Proportionately (समानुपाती ) Agnostically (द्वंद्वात्मक रूप से )

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Only 1 and 2 Only 2 and 3

None of the given statements.

Only 1 and 3 All three statements.

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Ancient Greek and Latin books on

Only 1 and 2 Only 2 and 3

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IRDAI (बीमा विनियामक और विकास

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SEBI registered foreign portfolio

Indian Banks to an overseas

Department of Financial Services

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RBI Governor has no veto power in FSDC meetings.

Warehousing Development and

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Only two instruments.[के वल दो

Only Four instruments.[के वल चार

Consider the following statements. [निम्नलिखित कथनों पर विचार करें ।]

1 only [के वल 1] 2 only [के वल 2]

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1 and 3 only [ के वल 1 और 3] 1, 2 and 3 [1, 2 और 3]

1 and 2 only [के वल 1 और 2 ] 1 and 3 only [के वल 1 और 3 ]

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Only one [के वल एक] Only two [के वल दो]

Only three [के वल तीन]

It is an instrument to protect the

It is an instrument to bonds in the Bankers use it to restructure

1 and 2 only [ के वल 1 और 2] 2 and 3 only [ के वल 2 और 3]

Setting up various levels of

When a trader sets up their offices

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Delhi [दिल्ली] Mumbai [मुंबई]

Gift city, Gujarat [गिफ्ट सिटी, गुजरात] Hyderabad, Telangana [हैदराबाद,

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1 and 2 only [ के वल 1 और 2] Neither 1 nor 2 [न तो 1 और न ही 2]

Find Correct statements (सही कथन का पता लगाइए) [Asked in UPSC-Pre-2018)

1 and 2 Only (के वल 1 और 2) 3 only (के वल 3)

2 and 3 Only (के वल 2 और 3)

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1 only (के वल 1) 2 only (के वल 2)

1, 3 and 4 only (के वल 1, 3 और 4)

1 only (के वल 1) 1 and 2 Only (के वल 1 और 2)

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An advisory issued by the king to his A diary to be maintained for daily

Find correct statement(s) (सही कथन का पता लगाइए) (UPSC-Prelims-2020)

1 and 2 Only (के वल 1 और 2) 4 only (के वल 4)

1 and 3 Only (के वल 1 और 3)

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1 and 2 only (के वल 1 और 2)

1 and 3 only (के वल 1 और 3) 1, 2 and 3 (1, 2 और 3)