UPSC Prelims PYQs – Sharemarket, Companies Act (Economy)

Instructions:

– Previous year UPSC CSE prelims questions from the topic ‘Sharemarket, Companies Act (Economy)’ are given here for practice.
– Each question carries 2 marks.
– There is 1/3 negative marking for incorrect answers.

Your participation in this quiz can help you to analyse the question pattern for the UPSC civil services prelims exam.

Best of luck! Let’s get started.


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

[UPSC CSE – 2023 Prelims]

 
 
 
 

2. 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?

[UPSC Civil Services Exam – 2022 Prelims]

 
 
 
 

3. 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?

[UPSC Civil Services Exam – 2022 Prelims]

 
 
 
 

4. 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?

[UPSC Civil Services Exam – 2021 Prelims]

 
 
 
 

5. In the context of the Indian economy, non-financial debt includes which of the following?

  1. Housing loans owed by households
  2. Amounts outstanding on credit cards
  3. Treasury bills

Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2020 Prelims]

 
 
 
 

6. Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?

[UPSC CSE – 2020 Prelims]

 
 
 
 

7. 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?

[UPSC Civil Services Exam – 2020 Prelims]

 
 
 
 

8. 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?

[UPSC Civil Services Exam – 2019 Prelims]

 
 
 
 

9. 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?

[UPSC Civil Services Exam – 2018 Prelims]

 
 
 
 

10. 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

[UPSC Civil Services Exam – 2016 Prelims]

 
 
 
 

11. With reference to ‘Financial Stability and Development Council’, consider the following statements:

  1. It is an organ of NITI Aayog.
  2. It is headed by the Union Finance Minister
  3. It monitors macro-prudential supervision of the economy.

Which of the statements given above is/ are correct?

[UPSC Civil Services Exam – 2016 Prelims]

 
 
 
 

12. What does venture capital mean?

[UPSC Civil Services Exam – 2014 Prelims]

 
 
 
 

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