UPSC Indian Economy – Chapter 12: Financial Markets and Regulators (32 MCQs)

Which one of the following is a money-market instrument?

Treasury Bills in India are issued for:

A 91-day Treasury Bill of face value Rs 100 is bought for Rs 98.50. Its approximate annualised yield is:

Which instrument replaced CBLO in the money market?

Shares in India are settled on:

In the Indian call money market, 'notice money' refers to inter-bank funds lent for a period of:

The Financial Stability and Development Council is chaired by:

IFSCA regulates financial services in:

Hedge funds in India are registered as:

Which of the following is true of masala bonds?

If the price of an existing bond falls, its yield:

India's first depository, which holds securities in electronic form, is:

Credit rating agencies in India are regulated by:

A stock with a beta of 1.5 is expected to:

Which body is responsible for clearing government securities and money-market trades?

Assertion (A): Bondholders generally bear lower risk than shareholders of the same company.
Reason (R): Bondholders are lenders who are repaid before shareholders.

Which of the following are capital-market instruments?
1. Equity shares
2. Corporate debentures
3. Certificates of Deposit
Select the correct answer:

Arrange the following in chronological order of establishment:
1. Bombay Stock Exchange
2. National Securities Depository Ltd
3. Central Depository Services Ltd
4. IFSCA

Venture capital means:

The Securities Appellate Tribunal hears appeals against orders of:

With reference to investments, consider the following:
1. Bonds
2. Hedge Funds
3. Stocks
4. Venture Capital
How many of the above are treated as Alternative Investment Funds (AIFs)?

With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of:

Consider the following markets:
1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market
How many of the above are included in capital markets?

In the context of finance, the term 'beta' refers to

With reference to the Indian economy, what are the advantages of "Inflation-Indexed Bonds (IIBs)"?
1. Government can reduce the coupon rates on its borrowing by way of IIBs.
2. IIBs provide protection to the investors from uncertainty regarding inflation.
3. The interest received as well as capital gains on IIBs are not taxable.
Which of the statements given above are correct?

With reference to Convertible Bonds, consider the following statements:
1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
Which of the statements given above is/are correct?

With reference to India, consider the following statements:
1. Retail investors through demat accounts can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in the primary market.
2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.
3. The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?

With reference to the Indian Economy, consider the following statements:
1. 'Commercial Paper' is a short term unsecured promissory note.
2. 'Certificate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation.
3. 'Call Money' is a short-term finance used for interbank transactions.
4. 'Zero-Coupon Bonds' are the interest-bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct?

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?

Consider the following statements:
1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills are issued at a discount from the par value.
Which of the statements given above is/are correct?

With reference to 'Financial Stability and Development Council', consider the following statements:
1. It is an organ of NITI Aayog.
2. It is headed by the Union Finance Minister.
3. It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?

With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?
1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sectors.
Select the correct answer using the code given below.