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Financial Markets & Capital Markets

41 questions in Indian Economy.

Asked in 2026, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2016, 2014, 2010

Which of the following statements about Real-World Assets (RWA) Tokenization are correct ? 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology. 2. Tokenization of real world assets offers 24 × 7 access, promoting financial inclusion. 3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India. Select the answer using the code given below :

  1. (a)1, 2 and 3
  2. (b)2 and 3 only
  3. (c)1 and 2 only
  4. (d)1 and 3 only
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Official answer(a) 1, 2 and 3

Which of the following statements about Crowdfunding is/are correct ? 1. Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project. 2. Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures. Select the answer using the code given below :

  1. (a)1 only
  2. (b)2 only
  3. (c)Both 1 and 2
  4. (d)Neither 1 nor 2
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Official answer(c) Both 1 and 2

Consider the following statements : Statement I : As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II : Bondholders are lenders to a company whereas stockholders are its owners. Statement III : For repayment purpose, bondholders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

  1. (a)Both Statement II and Statement III are correct and both of them explain Statement I
  2. (b)Both Statement I and Statement II are correct and Statement I explains Statement II
  3. (c)Only one of the Statements II and III is correct and that explains Statement I
  4. (d)Neither Statement II nor Statement III is correct
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Official answer(a) Both Statement II and Statement III are correct and both of them explain Statement I

Consider the following statements : I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India’s stock market has grown rapidly in the recent past even overtaking Hong Kong’s at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(a) I and II only

Consider the following statements : Statement–I : Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable. Statement–II : InvITs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002’. Which one of the following is correct in respect of the above statements?

  1. (a)Both Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–I
  2. (b)Both Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–I
  3. (c)Statement–I is correct but Statement–II is incorrect
  4. (d)Statement–I is incorrect but Statement–II is correct
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Official answer(d) Statement–I is incorrect but Statement–II is correct

In the context of finance, the term ‘beta’ refers to

  1. (a)the process of simultaneous buying and selling of an asset from different platforms
  2. (b)an investment strategy of a portfolio manager to balance risk versus reward
  3. (c)a type of systemic risk that arises where perfect hedging is not possible
  4. (d)a numeric value that measures the fluctuations of a stock to changes in the overall stock market
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Official answer(d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

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 ?

  1. (a)1 and 2 only
  2. (b)2 and 3 only
  3. (c)1 and 3 only
  4. (d)1, 2 and 3
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Official answer(a) 1 and 2 only

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 ?

  1. (a)1 only
  2. (b)2 only
  3. (c)Both 1 and 2
  4. (d)Neither 1 nor 2
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Official answer(c) Both 1 and 2

With reference to India, consider the following statements : 1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in 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?

  1. (a)1 only
  2. (b)1 and 2
  3. (c)3 only
  4. (d)2 and 3
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Official answer(b) 1 and 2

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 ?

  1. (a)1 and 2 only
  2. (b)4 only
  3. (c)1 and 3 only
  4. (d)2, 3 and 4 only
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Official answer(c) 1 and 3 only

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 offer are issued at a discount from the par value. Which of the statements given above is/are correct ?

  1. (a)1 and 2 only
  2. (b)3 only
  3. (c)2 and 3 only
  4. (d)1, 2 and 3
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Official answer(c) 2 and 3 only

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 sector. Select the correct answer using the code given below.

  1. (a)1 only
  2. (b)2 only
  3. (c)Both 1 and 2
  4. (d)Neither 1 nor 2
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Official answer(c) Both 1 and 2

What is/are the purpose/purposes of Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme'? 1. To bring the idle gold lying with Indian households into the economy 2. To promote FDI in the gold and jewellery sector 3. To reduce India's dependence on gold imports Select the correct answer using the code given below.

  1. (a)1 only
  2. (b)2 and 3 only
  3. (c)1 and 3 only
  4. (d)1, 2 and 3
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Official answer(c) 1 and 3 only

In the parlance of financial investments, the term ‘bear’ denotes

  1. (a)An investor who feels that the price of a particular security is going to fall
  2. (b)An investor who expects the price of particular shares to rise
  3. (c)A shareholder or a bondholder who has an interest in a company, financial or otherwise
  4. (d)Any lender whether by making a loan or buying a bond
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Official answer(a) An investor who feels that the price of a particular security is going to fall