IASbaba’s Daily Prelims Test [Day 34]

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 IASbaba’s Daily Prelims Test [Day 34]

 
TOPIC: ECONOMICS – Market (Money & Capital) and Current Affairs

1. Consider the following statements regarding Indian Depository Receipts (IDRs).

1. IDR is an instrument created by Indian depository in India against underlying shares of issuing company.
2. It allows foreign investors to invest in listed Indian companies.
3. IDRs are denominated in Indian rupees.

Which of the above statements are correct?

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. All the above

2. Which of the following is/are the functions of Securities Exchange Board of India under SEBI Act, 1992?

1. Registering stock exchanges, mutual funds, brokers etc.
2. Promoting investor education.
3. Inspection and audit of stock exchanges and various intermediaries.

Select the correct code from below.

1. 1 only
2. 1 and 2 only
3. 1 and 3 only
4. All the above

3. Consider the following statements regarding foreign investments in India.

1. A particular FII is allowed to invest up to 10% of the paid up capital.
2. Any investment above 10% will be constructed as FDI.
3. FIIs cannot invest in unlisted securities.

Which of the above statement is/are correct?

1. 1 only
2. 2 only
3. 1 and 2 only
4. None of the above

4. Consider the following statements.

1. Insurance density is the ratio of insurance premium as a percentage of GDP, in a given year.
2. Insurance penetration is the ratio of premium under written in a given year to the total population.

Which of the above statement(s) is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None of the above

5. Foreign portfolio investment is coming to India substantially through ‘participatory notes’. Consider the following statements regarding ‘Participatory notes’.

1. It is a derivative instrument issued in foreign jurisdiction against underlying Indian securities.
2. Investors in the participatory note own the underlying Indian security.
3. Participatory note holder does not enjoy any voting rights in relation to security/share referenced by Participatory note.

Which of the above statements is/are correct?

1. 1 only
2. 1 and 2 only
3. 1 and 3 only
4. 2 and 3 only 

6. Consider the following statements regarding Rajiv Gandhi Equity Savings Scheme (RGESS).

1. It is designed exclusively for first time individual investors.
2. Investment in any single year cannot exceed Rs. 1,00,000/-.
3. Investors get 50% of deduction of amount invested during the year, upto maximum investment of Rs. 50,000/- per financial year from his taxable income for that year.

Which of the above statement are correct?

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. None of the above

7. Government recently launched ‘Atal Pension Yojana’. Consider the following statements regarding Atal Pension Yojana.

1. Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.
2. Minimum period of contribution by the subscriber under APY would be 20 years.
3. It is mainly targeted at organised sector workers.
4. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY.

Which of the above statements are correct?

1. 1 and 4 only
2. 2 and 4 only
3. 1, 2 and 3 only
4. 1, 2 and 4 only

8. Consider the following statements regarding private equity investments.

1. Angel investors are an individual investor who provides financial backing to entrepreneurs for starting their businesses.
2. Venture Capital is a company or business investor which is seldom interested in early stage of business.

Which of the above statements are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 not 2

9. Which of the following statements is/are correct regarding security markets?

1. The market in which the instruments of security market are traded between the capital raiser and the instrument purchaser is known as the secondary market.
2. The market where the instruments of security market are traded among the primary instrument holders is known as the primary market.

Select the correct code from below.

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 not 2

10. Generally FDIs are preferred over FIIs. Which of following is/are the reason(s) to do so?

1. FDI brings in a certain expenditure that can’t be pulled out overnight.
2. It creates jobs and can potentially aid economic growth.
3. FDIs are always made in partnership or under a joint venture with a domestic company.

Select the correct code from below.

1. 1 only
2. 3 only
3. 1 and 2 only
4. 2 and 3 only

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