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4 questions · 2023 · answers as per the UPSC key

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UPSC 2023 · Q21 · Indian Economy › Financial Markets & Capital Markets · Save

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?

(a) Both Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–I
(b) Both Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–I
(c) Statement–I is correct but Statement–II is incorrect
(d) Statement–I is incorrect but Statement–II is correct
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Answer: (d) Statement–I is incorrect but Statement–II is correct
UPSC 2023 · Q25 · Indian Economy › Financial Markets & Capital Markets · Save

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?

(a) Only one
(b) Only two
(c) Only three
(d) All four
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Answer: (b) Only two
UPSC 2023 · Q28 · Indian Economy › Financial Markets & Capital Markets · Save

Consider the investments in the following assets :

  1. Brand recognition
  2. Inventory
  3. Intellectual property
  4. Mailing list of clients

How many of the above are considered intangible investments?

(a) Only one
(b) Only two
(c) Only three
(d) All four
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Answer: (c) Only three
UPSC 2023 · Q73 · Indian Economy › Financial Markets & Capital Markets · Save

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

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