UPSC 2025 › Indian Economy › Financial Markets & Capital Markets

3 questions · 2025 · answers as per the UPSC key

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UPSC 2025 · Q1 · Indian Economy › Financial Markets & Capital Markets · Save

With reference to investments, consider the following : I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital

How many of the above are treated as Alternative Investment Funds?

(a) Only one
(b) Only two
(c) Only three
(d) All the four
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Answer: (b) Only two
UPSC 2025 · Q7 · Indian Economy › Financial Markets & Capital Markets · Save

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?

(a) Both Statement II and Statement III are correct and both of them explain Statement I
(b) Both Statement I and Statement II are correct and Statement I explains Statement II
(c) Only one of the Statements II and III is correct and that explains Statement I
(d) Neither Statement II nor Statement III is correct
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Answer: (a) Both Statement II and Statement III are correct and both of them explain Statement I
UPSC 2025 · Q8 · Indian Economy › Financial Markets & Capital Markets · Save

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?

(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III
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Answer: (a) I and II only