SSC CGL Economy – Financial Markets & Institutions – Level 2 · Exam Level · Tier I Sprint

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SSC CGL Economy – Financial Markets & Institutions – Level 2 · Exam Level · Tier I Sprint – 15 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Match the followingMatch the institution with its year:
P. IFCI Q. UTI R. SIDBI S. LIC
1. 1990 2. 1948 3. 1956 4. 1964

Correct Answer: C [P-2, Q-4, R-1, S-3]

Explanation:

IFCI 1948, UTI 1964, SIDBI 1990, LIC 1956.

2.  
Imaginary: a 182-day Treasury bill with a face value of ₹ 100 sells for ₹ 96. Measured on the price paid, its yield a year is closest to:

Correct Answer: A [8.36%]

Explanation:

4 ÷ 96 × 365 ÷ 182 × 100 ≈ 8.36%.

3.  
Chronological orderArrange in chronological order:
I. NSE incorporated II. LIC formed III. IRDA Act passed IV. BSE begins

Correct Answer: D [IV, II, I, III]

Explanation:

Answer: IV, II, I, III. 1875 → 1956 → 1992 → 1999.

4.  
Assertion–Reason
A: When market interest rates rise, prices of existing fixed-coupon bonds fall.
R: The coupon on an existing bond is fixed.

Correct Answer: B [Both A and R are true and R explains A]

Explanation:

Fixed coupon → price must fall to give the new, higher yield (Bond See-Saw).

5.  
A perpetual bond pays ₹ 45 a year. If the market yield is 9%, its price is:

Correct Answer: A [₹ 500]

Explanation:

Answer: ₹ 500. 45 ÷ 0.09 = ₹ 500.

6.  
Which pair is incorrectly matched?

Correct Answer: B [Certificate of deposit – issued by companies]

Explanation:

CDs are issued by banks; CP by companies.

7.  
True/False countHow many of these are capital market instruments?
equity shares, 364-day T-bill, debentures, commercial paper, 10-year government bond

Correct Answer: D [Three]

Explanation:

Shares, debentures and the 10-year bond (more than one year).

8.  
Fill in the blankNew shares offered first to existing shareholders, in proportion to their holding, form a ______ issue.

Correct Answer: C [rights]

Explanation:

Rights issue – existing holders get the first right to buy (and pay for) the new shares; a bonus issue is free.

9.  
A company earns a net profit of ₹ 30 crore and has 6 crore shares. Its share trades at ₹ 75. Its P/E ratio is:

Correct Answer: A [15]

Explanation:

EPS = 30 ÷ 6 = ₹ 5; P/E = 75 ÷ 5 = 15.

10.  
Two-quantity comparison
Quantity I: annualised yield on price of a 182-day ₹ 100 T-bill bought at ₹ 97
Quantity II: discount rate on face value of the same bill

Correct Answer: A [Quantity I > Quantity II]

Explanation:

Yield on price divides by 97, discount rate by 100 – the yield is larger (6.20% vs 6.02%).

11.  
Commodity derivatives in India are now regulated by:

Correct Answer: C [SEBI]

Explanation:

Answer: SEBI. FMC merged with SEBI in 2015.

12.  
Trick SpotterA bond's market price has risen above its face value. Without calculation, its current yield is:

Correct Answer: B [below its coupon rate]

Explanation:

Premium price → yield below coupon (See-Saw).

13.  
Spot My Mistake"A rights issue gives free shares to existing shareholders out of the company's reserves." The statement actually describes a:

Correct Answer: D [bonus issue]

Explanation:

Free shares from reserves = bonus issue; rights shares are paid for.

14.  
Reverse questionThis body was set up in 2010, is chaired by the Union Finance Minister and brings all financial regulators together. It is the:

Correct Answer: C [Financial Stability and Development Council]

Explanation:

FSDC – 2010, chaired by the FM.

15.  
Securities held in electronic form are kept with a depository. India's first depository was:

Correct Answer: D [NSDL]

Explanation:

NSDL – 1996 under the Depositories Act, 1996.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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