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Plus Test series Mrunal’s Economy Course for UPSC Prelims 2023 Weekly Economy Test

Solutions

All answers

Question 1
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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

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
वादा करके अल्पावधि के लिए पैसा उधार
समीक्षा करती हैं)
लिया)

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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 no 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.

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Question 5
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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)
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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)

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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)

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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

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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.

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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 statement(s) is/are correct? (निम्नलिखित में से कौन सा/से कथन सही है/हैं)
1. Corporate Social Responsibility (CSR) norms are mandated under Companies Act 2013.
(कॉर्पोरे ट सामाजिक उत्तरदायित्व के मानदंड कं पनी अधिनियम 2013 के अन्तर्गत अनिवार्य हैं)
2. National CSR awards to companies are given by the Ministry of Social Justice. (कं पनियों
को राष्ट्रीय सीएसआर पुरस्कार सामाजिक न्याय मंत्रालय द्वारा दिया जाता है)
3. CSR norms require Indian companies to spend 10% of their profit on public welfare
projects. (सीएसआर मानदंडों के अन्तर्गत भारतीय कं पनियों को सार्वजनिक कल्याण की परियोजनाओं पर
अपने लाभ का 10% खर्च करने की आवश्यकता होती है)

Only 1 and 3 Only 2 and 3

Only 1
1 , 2 and 3
CORRECT ANSWER

Solution Hide
St 1 is correct: The Companies Act, 2013 has introduced the concept of CSR in the Act itself.
St 2 is incorrect: The Ministry of Corporate Affairs provides National CSR Awards to recognize
corporate initiatives in the area of corporate social responsibility (CSR).
St 3 is incorrect: The Companies Act make it mandatory for companies of a certain turnover
and profitability to spend 2% of their average net profit.

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Question 18
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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 19
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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 20
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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 21
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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
उत्तर का चयन करें ।]

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.

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Question 22
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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 ।]]

1 only [के वल 1]
2 only [के वल 2]
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 23
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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.

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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 24
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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 25
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Find the correct statement about zero coupon, zero Principle instrument. [जीरो-कू पन, जीरो-
प्रिंसिपल इंस्ट्रू मेंट्स 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
उत्तर का चयन करें ।]

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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 26
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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 27
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“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

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विश्वविद्यालयों तक, निकटता में विभिन्न स्तरों थल सेना, जल सेना और वायु सेना अपने
के शिक्षण संस्थान स्थापित करता है] ठिकाने एक दू सरे के निकट स्थापित करते हैं।]

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 28
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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 29
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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]

CORRECT ANSWER

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Hyderabad, Telangana [हैदराबाद,
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 30
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Serious Fraud Investigation Office (SFIO) is an organization under _ _ _ ministry. (गंभीर धोखाधड़ी
जांच कार्यालय (SFIO) _ _ _ मंत्रालय के नीचे कार्यरत संगठन है।)

Ministry of Home Affairs (गृह मंत्रालय) Ministry of Finance (वित्त मंत्रालय)

Ministry of Corporate Affairs (कॉर्पोरे ट

Ministry of Electronics and IT
कार्य मंत्रालय)
(इलेक्ट्रॉनिक्स और आईटी मंत्रालय)
CORRECT ANSWER

Solution Hide
SFIO is under Corporate Affairs Ministry

Question 31
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Find correct about Competition Commission of India (CCI) (भारत के प्रतियोगिता आयोग (CCI) के
बारे में सही खोजें)
1. It was setup under the Companies Act 2013. (यह कं पनी अधिनियम 2013 के तहत बनाया गया था।)
2. It functions under the Ministry of Commerce. (यह सीसीईए संस्था वाणिज्य मंत्रालय के नीचे काम
करती है)
Answer Codes:

only 1 only 2

Neither 1 nor 2
Both 1 and 2
CORRECT ANSWER

Solution Hide

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The correct answer is D) neither 1 nor 2.
Explanation:
The Competition Commission of India (CCI) is a statutory body established under the
Competition Act, 2002.#1 is wrong.
The Ministry of Corporate Affairs is the parent organization of the Competition Commission
of India. #2 is wrong.

Question 32
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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
उत्तर का चयन करें ।]

2 only [के वल 2]
1 only [के वल 1]
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 33
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Find the correct statement about Investor Education and Protection fund authority (IEPF).
[विनिधानकर्त्ता शिक्षा और सुरक्षा निधि प्राधिकरण (IEPF) के बारे में सही बयान खोजें]
1. It is a statutory body set up under the SEBI Act. [यह एक वैधानिक निकाय है जो सेबी अधिनियम
के तहत स्थापित है।]
2. The deputy governor of RBI is the ex-officio chairman of IEPI. [RBI के डिप्टी गवर्नर IEPI के
पदेन अध्यक्ष होते हैं।]
3. It looks after unclaimed shares, bonds, dividends, interest, etc. [यह बकाया /लावारिस शेयरों,
बांडों, लाभांशों, ब्याज आदि की देखभाल करता है।]
Select the correct answer using the codes given below. [नीचे दिए गए कोड का उपयोग करके सही
उत्तर का चयन करें ।]

3 only [ के वल 2
1 only [के वल 1
CORRECT ANSWER

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

Solution Hide
Statement 1 is incorrect: It is a statutory body set up under the provisions of section 125 of the
Companies Act 2013.
Statement 2 is incorrect: Secretary, of the Ministry of corporate affairs, is the chairman of
IEPI.
Statement 3 is correct:

Question 34
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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 35
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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)

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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 36
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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 37
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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 38
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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।)
Codes: (उत्तर हेतु कू ट)

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

1 and 3 Only (के वल 1 और 3)

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.

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Question 39
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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।)
Codes: (उत्तर हेतु कू ट)

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
St1 and st2 are right: Inflation-Indexed Bonds (IIBs) are also known as Inflation-linked bonds,
designed to safeguard an investor’s investment from future uncertainties about the inflation
rate. IIBs also protect savings from inflation. As IIBs are Government securities (G-Secs), which
help the Government to reduce the coupon rates on its borrowing. Like other G-Secs, coupons
on IIBs would be paid on a half-yearly basis. A fixed coupon rate would be paid on the
adjusted principal.
St3 is wrong: The interest received as well as capital gains on Inflation-Indexed Bonds (IIBs)
are taxable.

Question 40
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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।)
Codes: (उत्तर हेतु कू ट)

1 only (के वल 1) 2 only (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

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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 41
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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)

1 only (के वल 1) 2 only (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
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 42
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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)

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Shares (शेयर)
Debentures (डिबेंचर)
CORRECT ANSWER

Asset loans (परिसंपत्ति ऋण) Gold loans (स्वर्ण ऋण)

Solution Hide
Debentures are the viable alternative to term-loans for raising debt finance by large publicly
traded firms. Debentures are debt instruments used by companies and the government to
issue loans. Debentures are issued to raise capital to meet the expenses of an upcoming
project or to pay for a planned expansion in business.
So the Answer is B

Question 43
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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 44
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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)

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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 45
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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 46
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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:)

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1 only (के वल 1)
2 only (के वल 2)
CORRECT ANSWER

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

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 47
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Find correct statement(s): (सही कथन का पता लगाइए:) (Asked in Prelims-2021[MP1] )

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।)
Codes: (उत्तर हेतु कू ट)

1 and 2 Only (के वल 1 और 2)

1 only (के वल 1)
CORRECT ANSWER

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

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 48
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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 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
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 49
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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

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Question 50
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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
65 min 4 day
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.

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