Q31. With reference to investments, consider the following:

1. Bonds
2. Hedge Funds
3. Stocks
4. Venture Capital

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

Q32. Which of the following are the sources of income for the Reserve Bank of India?

1. Buying and selling Government bonds
2. Buying and selling foreign currency
3. Pension fund management
4. Lending to private companies
5. Printing and distributing currency notes

Select the correct answer using the code given below.

Q37. Consider the following statements:

Statement I: As regards investment generally, returns from a company, 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 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments?

Consider the following statements: 1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct?

In India, which of the following can trade in Corporate Bonds and Government Securities? 1. Insurance Companies 2. Pension Funds 3. Retail Investors Select the correct answer using the code given below:

Consider the following statements: Statement-I: If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment. Statement-II: The USA Government debt is not backed by any hard assets, but only by the faith of the Government. Which one of the following is correct in respect of the above statements?

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: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

In the context of finance, the term 'beta' refers to

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?

With reference to the India 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?

With reference to the Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/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 the expenditure made by an organization or a company, which of the following statements is/are correct? 1. Acquiring new technology is capital expenditure. 2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure. Select the correct answer using the code given below:

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?

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?

What is the importance of the term "Interest Coverage Ratio" of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below:

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 RBI 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?

Along with the Budget, the finance minister also places other documents before the Parliament which include ‘The Macro Economic Framework Statement’. The aforesaid document is presented because this is mandated by

With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? 1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education etc. 2. A specified portion of each MP’s fund must benefit SC/ST populations 3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next year. 4. The district authority must inspect at least 10% of all works under implementation every year. Select the correct answer using the code given below:

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 Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?

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

Consider the following items: 1. Cereal grains hulled 2. Chicken eggs cooked 3. Fish processed and canned 4. Newspapers containing advertising material. Which of the above items is/are exempted under GST (Goods and Services Tax)?

Consider the following statements: 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct?

What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:

Consider the following statements: 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Reducing import duty Select the correct answer using the code given below.

Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and the Union Territories Select the correct answer using the code given below.

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Expanding industries Select the correct answer using the code given below.

With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? 1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent. 2. It has made recommendations concerning sector-specific grants. Select the answer using the code given below.

A decrease in tax to GDP ratio of a country indicates which of the following? 1. Slowing economic growth rate 2. Less equitable distribution of national income Select the correct answer using the code given below.

With reference to Union Budget, which of the following is / are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies Select the correct answer using the code given below.

What does venture capital mean?

The sales tax you pay while purchasing a toothpaste is a

Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment. Select the correct answer using the codes given below.

In India, deficit financing is used for raising resources for

Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission? 1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design 2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend 3. Devolution of a specified share of central taxes to local bodies as grants. Select the correct answer using the codes given below:

Under which of the following circumstances may ‘capital gains arise’? 1. When there is an increase in the sales of a product 2. When there is a natural increase in the value of the property owned 3. When you purchase a painting and there is a growth in its value due to increase in its popularity. Select the correct answer using the codes given below:

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Central Bank 2. Deposit of currency in commercial banks by the public 3. Borrowing by the government from the Central Bank 4. Sale of government securities to the public by the Central Bank. Select the correct answer using the codes given below:

Which one of the following statements approximately describes the “fiscal stimulus”?

Which one of the following is not a feature of “Value Added Tax”?

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

In the context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Down-sizing of bureaucracy 4. Selling/offloading the shares of Public Sector Undertakings. Which of the above can be used as measures to control the fiscal deficit in India?

Consider the following actions by the Governance: 1. Cutting the tax rates 2. Increasing the government spending 3. Abolishing the subsidies In the context of economic recession, which of the above actions can be considered a part of the “fiscal stimulus” package?

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: 1. The assets in the National Investment Fund are managed by the Union Ministry of Finance 2. The National Investment Fund is to be maintained within the Consolidated Fund of India 3. Certain Asset Management Companies are appointed as the fund managers 4. A certain proportion of annual income is used for financing select social sectors Which of the statements given above is/are correct?

In India, which of the following is regulated by the Forward Markets Commission?

In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?

In the context of Indian economy, consider the following pairs: Term — Most appropriate description 1. Melt down — Fall in stock prices 2. Recession — Fall in growth rate 3. Slow down — Fall in GDP Which of the pairs given above is/are correctly matched?

Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are 1. levied by the Union 2. collected by the States Which of the statements given above is/are correct?

Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act, 2003?

Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

Which one of the following pairs is not correctly matched?

In the context of global economy, which one of the following pairs is not correctly matched?

What does S & P 500 related to?

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

Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns

Which one of the following is the correct statement? Service tax is a/an

What is IndoNext which was launched in January, 2005?

Consider the following statements: 1. Global Trust Bank has been amalgamated with the Punjab National Bank. 2. The second report of the Kelkar Committee dealing with direct and indirect taxes has maintained its original recommendations including the abolition of exemptions relating to housing loans. Which of the statements given above is/are correct?

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?

Which of the following is not a recommendation of the task force on direct taxes under the chairmanship of Dr. Vijay L Kelkar in the year 2002?

Debenture holders of a company are its

With reference to the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on historical exchange rates. 2. The continued high borrowing has kept the real interest rates high in the economy. 3. The upward trend in the ratio of Fiscal Deficit to GDP in recent years has an adverse effect on private investments. 4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government. Which of these statements are correct?

India’s external debt increased from US $98,158 million as at the end of March 2000 to US $100,225 million as at the end of March 2001 due to increase in

A country is said to be in a debt trap if

Among the following major stock exchanges of India, the exchange which recorded highest turnover during the year 2000-2001 is

Consider the following: 1. Market borrowing 2. Treasury bills 3. Special securities issued to RBI Which of these is/are component(s) of internal debt?

Which of the following committees examined and suggested Financial Sector reforms?

Consider the following taxes: 1. Corporation tax 2. Customs duty 3. Wealth tax 4. Excise duty Which of these is/are indirect taxes?

Match List I with List II and select the correct answer using the codes given below the Lists: List I — List II A. Fiscal deficit — 1. Excess of total Expenditure over Total Receipts B. Budget deficit — 2. Excess of Revenue Expenditure over Revenue Receipts C. Revenue deficit — 3. Excess of Total Expenditure over Total Receipts less borrowings D. Primary deficit — 4. Excess of Total Expenditure over Total Receipts less borrowings and Interest Payments Codes: A B C D

A rise in ‘SENSEX’ means

Gilt-edged market means

The Standing Committee of State Finance Ministers recommended in January, 2000 uniform rates across the states in respect of

Match List-I with List-II and select the correct answer using the codes given below the lists: List-I — List-II A. Boom — 1. Business activity at high level with increasing income, output and employment at macro B. Recession — 2. Gradual fall of income, output and employment with business activity in low gear C. Depression — 3. Unprecedented level of under-employment and unemployment, drastic fall in income, output and employment. D. Recovery — 4. Steady rise in the general level of prices, income, output and employment Codes: A B C D

Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct?

A: Fiscal deficit is greater than budgetary deficit. R: Fiscal deficit is the borrowing from the Reserve Bank of India plus other liabilities of Government to meet its expenditure.

From the balance sheet of a company, it is possible to

The product life cycle from inception to demise is shown in the graph. Match List I with List II and select the correct answer using the codes given below: List I (Stage) A. Product Development B. Maturity C. Growth D. Introduction List II (Zone) Codes: A B C D

Economic Survey in India is published officially, every year by the:

Match List-I with List-II and select the correct answer. List-I (Committee) A. Disinvestment of shares in Public Sector Enterprises B. Industrial Sickness C. Tax Reforms D. Reforms in Insurance Sector List-II (Chaired by) 1. Rajah Chelliah 2. Omkar Goswami 3. R.N. Malhotra 4. C. Rangarajan Codes:

The sum of which of the following constitutes Broad Money in India? 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks 4. Other deposits with RBI Choose the correct answer using the codes given below:

A redistribution of income in a country can be best brought about through:

The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year:

Consider the following: 1. Industrial Finance Corporation of India 2. Industrial Credit and Investment Corporation of India 3. Industrial Development Bank of India 4. Unit Trust of India The correct sequence in which the above were established is:

Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked with the previous plan periods 4. Interest payment Codes:

Which of the following pairs are correctly matched? 1. Increase in interest rates—Monetary expansion 2. Low import growth rate in India—Recession in Indian industry 3. Euro-issues—Shares held by Indian companies in European countries 4. Portfolio investment—Foreign institutional investors. Codes:

Corporation tax:

Betterment levy is imposed by the government because:

The main source of financing the implementation of development programmes is

The term “Fiscal Crisis” in India currently refers primarily to

Zero-Based Budgeting (ZBB) lays emphasis on:

Ad valorem duty is a tax on the basis of

The important function of taxation in India is to

States earn more revenue directly through which of the following taxes?

‘Grants­in­aid’ is given to the States for:

1. Buyers’ market denotes the place where

The Government’s gold auction policy is aimed at