Correct Answer: C) Treasury Bills
Explanation: Treasury Bills are short-term government securities and are part of the money market instruments.
A) A market showing upward trends
B) A steadily declining market
C) A market showing irregular fluctuations
D) A rapidly growing market
Correct Answer: B) A steadily declining market
Explanation: A Bear Market refers to a stock market condition where prices are falling or expected to fall.
A) Shares
B) Bonds
C) Treasury Bills
D) Mutual Funds
Correct Answer: C) Treasury Bills
Explanation: Treasury Bills are short-term government securities and are part of the money market instruments.
A) Dumping
B) Hedging
C) Arbitrage
D) Speculation
Correct Answer: A) Dumping
Explanation: Dumping is an international trade practice involving the export of a product at a price lower than the price it normally commands in its domestic market.
A) Commercial Banks
B) The government
C) Corporations
D) Individuals
Correct Answer: A) Commercial Banks
Explanation: A Demand Draft is a negotiable instrument issued by banks to transfer money from one bank account directly to another.
A) Monetary Policy
B) Fiscal Policy
C) Trade Policy
D) Wage Policy
Correct Answer: B) Fiscal Policy
Explanation: Fiscal Policy uses changes in government spending and taxes to influence economic conditions including demand, employment, and inflation.
A) Purchase Price Parity
B) Public-Private Partnership
C) Purchasing Power Parity
D) Payable Purchase Price
Correct Answer: C) Purchasing Power Parity
Explanation: Purchasing Power Parity is an economic theory that compares different countries’ currencies through a “basket of goods” approach to determine the relative value of the currencies.
A) Financial institutions
B) Financial markets
C) Financial services
D) Public revenue
Correct Answer: D) Public revenue
Explanation: Public revenue pertains to government finance and taxation, whereas the financial system comprises institutions, markets, and services.
A) Economic Development
B) Investment Funds
C) Money Laundering
D) World Trade
Correct Answer: C) Money Laundering
Explanation: The FATF is an international body that develops policies to combat money laundering and terrorism financing.
A) Pharmaceuticals
B) Horticulture
C) Textiles
D) Petroleum
Correct Answer: B) Horticulture
Explanation: The Golden Revolution refers to the period of rapid development and growth in the horticulture sector in India.
A) A measure of a financial instrument’s credit quality
B) An interest rate applicable to banks
C) A tax levied on large financial transactions
D) A rule governing the use of credit cards
Correct Answer: A) A measure of a financial instrument’s credit quality
Explanation: A credit rating assesses the credit worthiness of a debtor, predicting their ability to pay back the debt and an implied risk of default.
A) An increase in the stock market
B) A decrease in unemployment rates
C) An increase in prices of goods and services
D) A decrease in the rates of home loans
Correct Answer: C) An increase in prices of goods and services
Explanation: Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of currency.
A) Financial technology
B) Finished products technology
C) Fiscal adjustments
D) Fixed term investments
Correct Answer: A) Financial technology
Explanation: Fintech refers to new tech that seeks to improve and automate the delivery and use of financial services, enhancing everything from mobile banking to cryptocurrency.
A) A measure of a company’s total employment size
B) The total market value of a company’s outstanding shares
C) A government-imposed limit on how many products a company can produce
D) The floor space owned by a company in square feet
Correct Answer: B) The total market value of a company’s outstanding shares
Explanation: Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock, computed as share price times the number of outstanding shares.
A) 1%
B) 4%
C) 10%
D) 6%
Correct Answer: B) 4%
Explanation: The primary objective of the monetary policy framework in India is to maintain price stability while keeping the inflation target at 4% within a band of +/- 2%.
A) RBI
B) SEBI
C) SIDBI
D) IRDAI
Correct Answer: D) IRDAI
Explanation: The Insurance Regulatory and Development Authority of India (IRDAI) is the regulatory body responsible for regulating and promoting the insurance and re-insurance industries in India.
A) Companies Act, 2013
B) Societies Registration Act, 1860
C) Cooperative Societies Act, 1912
D) Companies Act, 1956
Correct Answer: A) Companies Act, 2013
Explanation: Corporate Social Responsibility (CSR) is mandated under the Companies Act, 2013, which requires companies to spend a certain percentage of their profits on social and environmental projects.
A) Gross National Product (GNP)
B) Gross Domestic Product (GDP)
C) Net National Product (NNP)
D) National Income
Correct Answer: B) Gross Domestic Product (GDP)
Explanation: Gross Domestic Product (GDP) is the total market value of all goods and services produced within a country in a specific time period, encompassing all private and public consumption, government outlays, investments, and exports less imports that occur within a defined territory.
A) National Electronic Funds Transfer
B) Non-Essential Finance Tax
C) New Fund Transfer
D) National Electronic Finance Terms
Correct Answer: A) National Electronic Funds Transfer
Explanation: NEFT stands for National Electronic Funds Transfer, an Indian system of electronic transfer of money from one bank or bank branch to another.
A) They only trade in new bonds
B) They facilitate borrowing and lending for the long term
C) They are exclusively operated by the government
D) They primarily deal with foreign currency exchange
Correct Answer: B) They facilitate borrowing and lending for the long term
Explanation: Bond markets are financial markets where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. These markets allow long-term funding of public and private expenditures.
A) Government securities
B) Real estate
C) Start-ups and young businesses
D) Blue-chip stocks
Correct Answer: C) Start-ups and young businesses
Explanation: Venture capital is a form of private equity and a type of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth.
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