Indian Economy › Financial Markets & Capital Markets – UPSC Prelims PYQs

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.

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A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :

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.

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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?

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?

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?

With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :

In India, which of the following can trade in Corporate Bonds and Government Securities ?

1. Insurance Companies
2. Pension Funds
3. Retail Investors

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Consider the following :

1. Exchange-Traded Funds (ETF)
2. Motor vehicles
3. Currency swap

Which of the above is/are considered financial instruments ?

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?

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?

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?

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

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 ?

Consider the following statements :

1. In India, credit rating agencies are regulated by Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.

Which of the statements given above are correct ?

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 ?

Indian Government Bond Yields are influenced by which of the following?

1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates

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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?

The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

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 ?

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?

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 ?

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.

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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

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What does venture capital mean?

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

In India,

which of the following is regulated by the Forward Markets Commission ?

Which one of the following pairs is not correctly matched?

In the context of Indian news in recent times, what is MCX-SX ?

What does S & P 500 relate to?

Participatory Notes (PNs) are associated with which one of the following?

What is IndoNext which was launched in January, 2005?

Consider the following statements :

1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE)
2. For calculating the Sensex, all the Sensex stocks are assigned proportional weightage.
3. New York Stock Exchange is the oldest stock exchange in the world.

Which of the statements given above is/are correct?

Debenture holders of a company are its

Among the following major stock exchanges of India, which one recorded the highest turnover during the year 2001-02?

Gilt-edged market means

A rise in ‘SENSEX’ means

Which of the following pairs are correctly matched? I. Dow Jones : New York II. Hang Seng : Seoul III. FTSE-100 : London

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To prevent recurrence of scams in Indian Capital Market, the Government of India has assigned regulatory powers to

Which one of the following is the largest mutual fund organisation in India?

The price fluctuations of 4 scrips in a stock market in the four quarters of a year are shown in the table below. Four different investors had the following portfolios of investment in the four companies throughout the year: Investor 1: 10 of A, 20 of B, 30 of C and 40 of D Investor 2: 40 of A, 10 of B, 20 of C and 30 of D Investor 3: 30 of A, 40 of B, 10 of C and 20 of D Investor 4: 20 of A, 30 of B, 40 of C and 10 of D In the light of the above, which one of the following statements is correct?