MCQ for test-11-1-november-2023

Which of the following are likely consequences if the Indian Rupee has full Capital Account Convertibility?

1. Increase in financial market liquidity

2. Access to Foreign Capital becomes easy

3. Volatility in the exchange rate

Select the correct answer using the code given below.

“It refers to offer of shares against distributable profit to existing shareholders. The shareholders share in the profit is converted as shares. It is also known as scrip issue or capitalisation issue”. This is the most likely description of

Consider the following statements:

1. In the event of the liquidation of a business, the holders of its bonds have the last claim on any residual cash.

2. While stockholders can vote on specific company issues, bondholders have no voting rights.

Which of the statements given above is/are not correct?

Consider the following statements with reference to Additional Tier-1 (AT-1) bonds:

1. These are unsecured bonds that carry no maturity date.

2. Banks issuing AT-1 bonds can skip interest payouts for a particular year or reduce bonds face value.

3. Banks can issue these bonds on an electronic platform, and only institutional investors can subscribe to them.

Which of the statements given above are correct?

Consider the following statements with reference to Oil bonds:

1. These are issued by Oil Marketing Companies (OMCs) to offset losses that they suffer.

2. Oil bonds qualify as Statutory Liquidity Ratio (SLR) securities.

Which of the statements given above is/are correct?

Consider the following statements with reference to Commercial Papers:

1. These are long term capital market debt instruments issued by companies to raise funds.

2. These are issued in the form of a promissory note and are not backed by collateral.

3. CPs are usually sold at a discount to their face value and carry higher interest rates than bonds.

Which of the statements given above is/are correct?

With reference to Debentures, which of the following statements is/are not correct?

1. They are short-term borrowing instruments issued only by the banks to borrow money from the public.

2. They are backed by specific security.

Select the correct answer using the code given below:

With reference to municipal bonds in India, consider the following statements:

1. Ahmedabad was the first city in South Asia to launch a municipal bond.

2. Only large institutional investors are eligible to invest.

Which of the statements given above is/are correct?

Consider the following statements with reference to Initial Coin Offerings (ICO):

1. It is a unique way adopted by cryptocurrency start-ups to raise money from the market.

2. They are regulated by the Securities and Exchange Board of India.

Which of the statements given above is/are correct?

With reference to Social Stock Exchanges (SSE), consider the following statements:

1. All activities of an enterprise must be social welfare activities to be able to list them on the SSE.

2. The listed enterprises can raise capital through equity or zero-coupon bonds.

3. It does not cover for-profit companies under their ambit of social enterprises.

Which of the statements given above is/are correct?

Consider the following statements with reference to Liquid Exchange Traded Fund (ETF):

1. Its aim is to provide an income commensurate with low risk, while also maintaining a high level of liquidity.

2. It can be traded in a stock market like stocks.

Which of the statements given above is/are correct?

With reference to ‘Kostak Rate’, consider the following statements:

1. It is the rate at which an investor buys an Initial Public Offering (IPO) in a grey market.

2. It indicates how a company’s performance will be after listing it on the stock market.

3. It is regulated by the Stock Exchange Board of India (SEBI) in India.

Which of the statements given above is/ are correct?

Consider the following statements:

1. An exchange-traded fund (ETF) is a basket of securities that trade on an exchange just like stocks.

2. ETFs generally have a minimum lock-in period and cannot be traded by an investor at their convenience.

3. ETFs are actively managed by professionals, while mutual funds are passive investment options that track the performance of an index.

Which of the statements given above is/are correct?

Kessler Syndrome, often seen in the news, is:

With reference to the Coronal Mass Ejections (CMEs), which one of the following statements is not correct?

Which one of the following missions has confirmed the on-site presence of water on the Moon?

With reference to ‘Black holes’, consider the following statements:

1. It is a place with very high gravity from which even light cannot escape. 

2. They are formed when a star collapses under its own gravity. 

3. Singularity and event horizon are two parts of a black hole.

4. Sagittarius A is a black hole located in the Milky Way galaxy.

Which of the statements given above are correct?

With reference to the Retail Direct Scheme, consider the following statements:

1. It allows non-competitive bids in the Primary issuance of all securities of Central as well as State Governments.

2. Non-resident retail investors cannot invest under the scheme.

3. One needs a rupee savings bank account maintained in India to participate in the scheme.

Which of the statements given above is/are correct?

Consider the following statements with reference to Municipal Bonds in India:

1. These bonds do not carry any sovereign guarantee by the Central Government.

2. There are no minimum eligible financial criteria for a Municipal Corporation to issue Municipal bonds.

Which of the statements given above is/are correct?

Which one of the following best describes the term ‘Anchor Investors’?

  With reference to financial markets, the term ‘’front running’’ means

Consider the following statements with reference to Gross Domestic Product (GDP) calculation in India:

1. The effects of trade surplus and deficits are not reflected in the GDP calculations in India.

2. Narrowing differences between GDP and Net Domestic Product (NDP) represents technology advancements in an economy.

3. The current base year for GDP calculation in India is 2020-2021.

How many of the statements given above are correct?

Consider the following statements regarding Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII):

1. While FDI’s are short-term investments, the FII’s are long term investments.

2. In comparison to FDI, FIIs can quickly enter and exit the stock market.

3. FDI increases a country’s productivity and thus leads to economic growth, whereas FII results in an increase in the country’s capital.

How many of the statements given above is/are correct?

Consider the following statements with reference to Malaria:

1. It is a disease caused by a virus transmitted via mosquitoes.

2. It does not spread directly from person to person.

3. India was declared malaria-free by the World Health Organization (WHO) in 2020.

Which of the statements given above is/are correct?

With reference to stem cells, consider the following statements:

1. Embryonic stem cells are pluripotent as they can change into any cell in the body.

2. Adult stem cells supply new cells in the organism to replace cells that get damaged.

3. Induced pluripotent stem cells are multipotent and can only change into a few cells in the body.

Which of the statements given above is/ are correct?