MCQOPTIONS
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MCQOPTIONS
This section includes 80 Mcqs, each offering curated multiple-choice questions to sharpen your Economic Organisations and Regulatory Bodies in India knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Level 1 is the most basic type of ADR where the foreign company |
| A. | Wishes its ADR to be listed on the U.S. exchanges alone. |
| B. | Does not wish its ADR to be listed on an exchange. |
| C. | Does not wish its ADR to be listed on an U.S. exchange |
| D. | Wishes its ADR to be listed on any exchange around the world. |
| Answer» C. Does not wish its ADR to be listed on an U.S. exchange | |
| 2. |
Which of the following statement is incorrect |
| A. | Every country has only one central which is managed by government officials |
| B. | RBI is a profit making institution acting in the interest of government |
| C. | RBI does not perform any ordinary commercial banking functions |
| D. | RBI has adopted minimum reserve system of note issue |
| Answer» C. RBI does not perform any ordinary commercial banking functions | |
| 3. |
Select the false one/ones from statements given below: 1. Exchanging the loan particular interest rate for another at lowest interest rate is called interest swap. 2. One debt being exchanged by another for a fresh term of repayment scheduled at the same or lower interest rate called debt swap. |
| A. | Only 2 is correct |
| B. | Both are correct |
| C. | Neither 1 nor 2 are correct |
| D. | Only 1 is correct |
| Answer» D. Only 1 is correct | |
| 4. |
When RBI is the lender of last resort what does it mean? |
| A. | RBI advances necessary credit against eligible securities |
| B. | Commercial banks give funds to RBI |
| C. | RBI advances money to public whenever there is an emergency |
| D. | All of the above |
| Answer» B. Commercial banks give funds to RBI | |
| 5. |
Which of the following is incorrect: |
| A. | EXIM Bank Finance for export-import |
| B. | RBI Bankers of Bank |
| C. | IDBI Industrial finance |
| D. | FCI Finance for commercial institutes |
| Answer» E. | |
| 6. |
Which of the following is true about the restrictions on RBI? (i) It is not to compete with the commercial banks. (ii) It is not allowed to pay interest on its deposits. (iii) It cannot engage directly or indirectly in trade. (iv) It cannot acquire or advice loans against immovable property. (v) It is prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security. |
| A. | only (i),(ii),(iii), and (iv) |
| B. | only (v) |
| C. | all the above |
| D. | none of the above |
| Answer» D. none of the above | |
| 7. |
Which of the following is true about the functions performed by RBI - (i) It is the Bank of Issue (ii) It acts as banker to the Government (iii) It is the banker of other banks (iv) It regulates the flow of credit |
| A. | Both (i) and (ii) |
| B. | Both (iii) and (iv) |
| C. | All the Above |
| D. | None of the above |
| Answer» D. None of the above | |
| 8. |
Consider the following statement regarding India millennium deposit: 1. It was started by SBI (State Bank of India). 2. This plan is only for non residents 3. It s maturity period is 6 years Choose correct options. |
| A. | Only 1 and 2 |
| B. | Only 1 and 3 |
| C. | All of the above |
| D. | None of these |
| Answer» B. Only 1 and 3 | |
| 9. |
SEBI has constituted a committee under TK Viswanathan for ________. |
| A. | Fair market conduct |
| B. | Manufacturing market conduct |
| C. | Partial market conduct |
| D. | Both a and c |
| Answer» B. Manufacturing market conduct | |
| 10. |
Economy survey in our country published officially every year by the: |
| A. | RBI |
| B. | Ministry of Finance, Govt. of India |
| C. | Planning Commission of India |
| D. | Ministry of Industries, Govt. of India |
| Answer» C. Planning Commission of India | |
| 11. |
NAB CONS refers to: |
| A. | Consultancy service of World Bank |
| B. | Consultancy of NABARD |
| C. | Consultancy or RBI |
| D. | Consultancy of Asia Development Bank |
| Answer» C. Consultancy or RBI | |
| 12. |
Bank rates implies the rate of interest: |
| A. | At which the Reserve Bank of India accepts the deposit of commercial bank. |
| B. | At which the Reserve Bank of India discounts the bill of exchange |
| C. | Payable on bond |
| D. | None of these |
| Answer» D. None of these | |
| 13. |
The Narsimham Committee for financial sector reform has suggested reduction in: |
| A. | SLR and financing to capital goods sector. |
| B. | SLR and CRR |
| C. | SLR, CRR and priority sector financing |
| D. | None of these |
| Answer» D. None of these | |
| 14. |
The accounting year of Central Bank (RBI) is: |
| A. | August-September |
| B. | April-March |
| C. | July-June |
| D. | September-October |
| Answer» C. July-June | |
| 15. |
Consider the following statement and select correct code about regarding the Banking Ombudsman: 1. Banking Ombudsman is appointed by RBI. 2. All scheduled commercial bank, regional rural bank and scheduled primary cooperative banks are covered under banking ombudsman. 3. Appeal against banking ombudsman can be taken by Governor of RBI. |
| A. | Only 3 is correct |
| B. | 1 and 2 are correct |
| C. | 1 and 3 are correct |
| D. | None of these are correct |
| Answer» C. 1 and 3 are correct | |
| 16. |
Word bulls and bears is related to: |
| A. | Foreign trade |
| B. | Banking |
| C. | Share market |
| D. | Educational |
| Answer» D. Educational | |
| 17. |
Which of the following institutions are concerned for long-term industrial finance: |
| A. | ICICI |
| B. | IDBI |
| C. | IFCI |
| D. | All of the above |
| Answer» E. | |
| 18. |
Which of the following are qualitative control methods |
| A. | Margins |
| B. | Maximum limit of credit for specific purpose |
| C. | Differential rate on certain types of advancement |
| D. | All of the above |
| Answer» E. | |
| 19. |
How many firms have been banned by SEBI which are suspected to be platforms for tax evasion? |
| A. | 500 |
| B. | 600 |
| C. | 764 |
| D. | More than 900 |
| Answer» E. | |
| 20. |
Who cancelled Sahara Mutual Fund license on 28th July 15? |
| A. | Supreme Court |
| B. | SEBI |
| C. | BSE |
| D. | CRISIL |
| Answer» C. BSE | |
| 21. |
Market regulatory SEBI has notified new norms on 18th September 2015 regarding the following: |
| A. | Dilution of chairman s powers on conduct of search and seizure of defaulters properties |
| B. | Permission for such operations being required from special courts |
| C. | Both of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 22. |
An anchor investor is one of the following: |
| A. | Non-qualified institutional buyer making application for value of INR 10 crore or more through book-building process |
| B. | Qualified Institutional buyer making application for value of INR 10 crore or more through book-building process |
| C. | Preferential Institutional Buyer making application for value of INR 10 crore or more through book-building process |
| D. | None of the above |
| Answer» C. Preferential Institutional Buyer making application for value of INR 10 crore or more through book-building process | |
| 23. |
What recent changes have been made by SEBI to norms for public offers through removal of restriction on maximum number of anchor investors on 12th September 2015? |
| A. | Present regulation limit of number of anchor investors at 15 if public size issue is below INR 250 crore, can be increased to 25 if issue size is over 250 crore |
| B. | Present regulation limit of number of anchor investors at 16 if public size issue is below INR 250 crore, can be increased to 26 if issue size is over 250 crore |
| C. | Present regulation limit of number of anchor investors at 17 if public size issue is below INR 250 crore, can be increased to 27 if issue size is over 250 crore |
| D. | Present regulation limit of number of anchor investors at 18 if public size issue is below INR 250 crore, can be increased to 28 if issue size is over 250 crore |
| Answer» B. Present regulation limit of number of anchor investors at 16 if public size issue is below INR 250 crore, can be increased to 26 if issue size is over 250 crore | |
| 24. |
. __________ policy refers to policy measure taken by RBI to control & regulate money supply |
| A. | Credit |
| B. | Monetary |
| C. | Fiscal |
| D. | Financial |
| Answer» C. Fiscal | |
| 25. |
SEBI has recently kicked in a new form for ASBA. What does ASBA stand for? |
| A. | Application Supported by Brokerage Amount |
| B. | Application Sustained by Blocked Amount |
| C. | Application Supported by Blocked Amount |
| D. | None of the above |
| Answer» D. None of the above | |
| 26. |
Investment through P-Notes into the Indian capital market rose to ______ lakh crore at the close of September 2015, according to SEBI. |
| A. | 2.52 |
| B. | 2.53 |
| C. | 2.54 |
| D. | 2.55 |
| Answer» D. 2.55 | |
| 27. |
Entities under probe for serious violation in which market can seek settlement of the case if they make good on losses suffered by investors to SEBI s satisfaction? |
| A. | Share Market |
| B. | Stock market |
| C. | Capital market |
| D. | Money market |
| Answer» D. Money market | |
| 28. |
Who has been given extension as SEBI Chairman till March 2017? |
| A. | Arundhati Bhattacharya |
| B. | Raghuram Rajan |
| C. | UK Sinha |
| D. | None of the above |
| Answer» D. None of the above | |
| 29. |
Cabinet has approved a pact between SEBI and which country on May 12th 2016? |
| A. | Abu Dhabi |
| B. | Bahrain |
| C. | Saudi Arabia |
| D. | Iran |
| Answer» B. Bahrain | |
| 30. |
The credit control methods adopted by RBi includes: |
| A. | Quantitative control |
| B. | Qualitative control |
| C. | Fixed control |
| D. | a &b |
| Answer» E. | |
| 31. |
Priority sector includes: |
| A. | Agriculture |
| B. | Retail Business |
| C. | Small Scale Industries |
| D. | All of the above |
| Answer» E. | |
| 32. |
Who sets up 'Base Rate' for Banks? |
| A. | Individual Banks Board |
| B. | Interest Rate Commission of India |
| C. | RBI |
| D. | None of the above |
| Answer» D. None of the above | |
| 33. |
Which one of the following is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds? |
| A. | Benchmark Prime Lending Rate |
| B. | Annual Percentage Rate |
| C. | Bank Rate |
| D. | Repo Rate |
| Answer» E. | |
| 34. |
'Subprime lending' is a term applied to the loans made to ___________________________. |
| A. | Those borrowers who do not have a good credit history |
| B. | Those borrowers who have a good credit history |
| C. | Those borrowers who do not have a good debit history |
| D. | Those borrowers who have a good debit history |
| Answer» B. Those borrowers who have a good credit history | |
| 35. |
Which of the following is/are in public sector: 1. Fertilizer Corporation of India 2. Food Corporation of India 3. Cotton Corporation |
| A. | Only 1, 2 |
| B. | Only 2,3 |
| C. | |
| D. | D. |
| Answer» E. | |
| 36. |
To regulate scam in Indian capital market, which of the following body has regulatory power: |
| A. | SEBI |
| B. | RBI |
| C. | SBI |
| D. | None of these |
| Answer» B. RBI | |
| 37. |
Objective of monetary policy is to: |
| A. | Control inflation |
| B. | Discourage hoarding of commodities |
| C. | Encourage flow of credit into neglected sector |
| D. | All of the above |
| Answer» E. | |
| 38. |
Central Bank________ Credit |
| A. | Create |
| B. | Controls |
| C. | Restricts |
| D. | None of the above |
| Answer» C. Restricts | |
| 39. |
SEBI has proposed a set of changes to relax rules and rename the institutional trading platform as what? |
| A. | High Tech Start Up & Other New Business Platform |
| B. | High Tech Incubation & Other New Business Platform |
| C. | High Tech Innovation % Other New Business Platform |
| D. | None of the above |
| Answer» B. High Tech Incubation & Other New Business Platform | |
| 40. |
SEBI has relaxed investment rules for which funds? |
| A. | Angel Funds |
| B. | Mutual Funds |
| C. | Debt Funds |
| D. | None of the above |
| Answer» B. Mutual Funds | |
| 41. |
Which financial body has asked intermediaries and companies to make regulatory payments in digital mode? |
| A. | SEBI |
| B. | RBI |
| C. | NSE |
| D. | BSE |
| Answer» B. RBI | |
| 42. |
Who has been appointed the new SEBI chief w.e.f March 1, 2017? |
| A. | UK Sinha |
| B. | Ajay Tyagi |
| C. | Brijesh Mishra |
| D. | None of the above |
| Answer» C. Brijesh Mishra | |
| 43. |
SEBI announced plans to tighten regulations for which type of trading? |
| A. | Spot trading |
| B. | Investor trading |
| C. | Algorithmic trading |
| D. | None of the above |
| Answer» D. None of the above | |
| 44. |
What is the latest amendment to the FPI regulations by capital and commodities market regulator SEBI? |
| A. | Barring Indians, NRIs and entities beneficially owned by NRIs from trading |
| B. | Barring Indians, NRIs, and entities beneficially owned by NRIs from being owners of participatory notes |
| C. | Barring Indians and NRIs from FDI in India |
| D. | None of the above |
| Answer» C. Barring Indians and NRIs from FDI in India | |
| 45. |
Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets? |
| A. | Clearing Members |
| B. | Brokers |
| C. | NBFCs |
| D. | Only a and b |
| Answer» E. | |
| 46. |
SEBI has allowed celebs to endorse which products? |
| A. | Stocks and shares |
| B. | Mutual funds |
| C. | Dividends |
| D. | Insurance |
| Answer» C. Dividends | |
| 47. |
SEBI has launched an online registration system for? |
| A. | REITs |
| B. | InvITs |
| C. | P-notes |
| D. | Only a and b |
| Answer» E. | |
| 48. |
SEBI has just set up plans for a special court in the national capital. Where else is the special court located in India? |
| A. | Mumbai |
| B. | Hyderabad |
| C. | Cochin |
| D. | Agartala |
| Answer» B. Hyderabad | |
| 49. |
The merit of issuing notes with RBI can be seen in |
| A. | Uniformity in note issue |
| B. | Stability in currency |
| C. | Control of credit |
| D. | All of the above |
| Answer» E. | |
| 50. |
Which act has given control & supervision powers to RBI over commercial banks |
| A. | RBI Act 1934 |
| B. | Banking Regulation act 1949 |
| C. | Both RBI Act 1934 & Banking Regulation act 1949 |
| D. | Banking Regulation Act 1960 |
| Answer» D. Banking Regulation Act 1960 | |