Question : Choose which of the following statements is true.
Option 1: Debentures Redemption Reserve is set aside by all the companies except All India Financial Institutions regulated by RBI and Banking Companies.
Option 2: Amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).
Option 3: Amount is set aside to Debentures Redemption Reserve by all Unlisted Companies.
Option 4: Debentures Redemption Investment is made by the companies required to set aside amount to Debentures Redemption Reserve.
Correct Answer: Amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).
Solution : Answer = amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).
The amount is set aside for Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs) only. Unlisted companies, excluding NBFCs and HFCs, are required to set aside an amount to the Debentures Redemption Reserve as per regulatory requirements.
Hence, the correct option is 2.
Answer laterQuestion : Which of the following is a feature of a non-banking financial company (NBFC)?
Option 1: Accepting deposits from the public
Option 2: Regulated by the Reserve Bank of India (RBI)
Option 3: Providing credit facilities
Option 4: None of the above
Correct Answer: Providing credit facilities
Solution : The correct answer is (c). Providing credit facilities
NBFCs are financial institutions that provide various financial services and products similar to traditional banks but without holding a banking license. One of the primary functions of NBFCs is to provide credit facilities, including loans, advances, asset financing, and other forms of credit to individuals and businesses.
NBFCs play a crucial role in providing credit and financial services to individuals and businesses, especially those who may have limited access to traditional banking services.
Question : Assertion: The service sector contributes the highest share of India's GDP.
Reason: India has witnessed significant growth in sectors such as IT, telecommunications, banking, tourism, and healthcare.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion is true. The service sector has been a significant driver of India's economic growth and contributes a substantial portion of the country's GDP.
The reason provided, stating that India has witnessed significant growth in sectors such as IT, telecommunications, banking, tourism, and healthcare, is also true. These sectors are part of the service sector and have experienced notable growth in India. The expansion of these industries has contributed to the increased share of the service sector in India's GDP.
Therefore, both the assertion and the reason are true, and the reason correctly explains the assertion.
Question : Which among the following comes under the primary sector of the Indian Economy?
Option 1: Sugar Industry
Option 2: Dairy Industry
Option 3: Banking Industry
Option 4: Transport of Goods
Correct Answer: Dairy Industry
Solution : The correct answer is Dairy.
The primary sector refers to all areas of human endeavour that use natural resources to produce essential goods, including agriculture, horticulture, dairy production, mining, fisheries, forestry, etc. By converting raw materials into valuable products, the secondary sector increases the value of natural resources.
Question : Comprehension:
In the following passage, some words have been deleted. Read the passage carefully and select the most appropriate option to fill in each blank.
The modern world (1) ________ around technology. It has advanced dramatically in the beyond twenty years, and presently, we can't envision a world without PCs and cell phones. The last century saw fast progressions in innovation and science, which were unfathomable previously. The internet is perhaps the most significant of these. Today, it is no longer a science fiction concept to communicate with people anywhere in the world. While smartphones keep us constantly connected to the virtual world, the wireless internet has eliminated the need to use a physical wire to connect with this world. Today, we rely on the Internet to pay our bills, book tickets, travel, and conduct banking transactions. Li-Fi, a new technology that uses light signals to (2) ________ data and reduces external interference, is currently in development.
On the other hand, such rapid progress comes with some (3) ________. Another sort of wrongdoing, known as digital wrongdoing, is the greatest danger to security today. WannaCry was one of the biggest recent cyberattacks. It infected more than 230,000 computers in over 150 countries and threatened to erase valuable data unless ransom payments were made. Personal and (4) ________ data continue to be stolen frequently, and our country's cyber security is still lacking. It's also possible to say that people miss out on important experiences in the real world because they spend so much time in the virtual world. The distinction between the real and online worlds sometimes appears to blur, especially as social media grows in popularity. For instance, the internet was said to have become so addictive in China that programmes were established to help people get off of it. However, technology's benefits (5)________ its drawbacks. It all comes down to what we do with it. One thing to keep in mind is that technology can serve us well, but not completely.
Select the most appropriate option to fill in the blank no. 1.
Option 1: rotates
Option 2: revolves
Option 3: squares
Option 4: circles
Correct Answer: revolves
Solution : The most appropriate choice is the second option.
Revolves in this context means that technology is at the centre of the modern world, plays a crucial role, and is the best choice in the context of the sentence.
Question : Comprehension:
In the following passage, some of the words have been deleted. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.
Gaming in the banking sector seems virtually (1) _____ to eliminate. The only effective measure to end it would be to (2) _____ bankers personally liable for losses, to remove the sense that their actions—their games—have (3) ______ personal financial or legal consequences.
It is this, rather (4) ______ removing the cap on bankers' bonuses, that has the best chance of preventing the financial system from blowing (5) ____ again.
Question:
Select the most appropriate option to fill in the blank number 4.
Option 1: then
Option 2: but
Option 3: so
Option 4: than
Correct Answer: than
Solution : The fourth option is the correct choice.
The phrase rather than is used to express a preference or choice between two alternatives. In this context, the passage indicates a preference for making bankers personally liable for losses over removing the cap on bankers' bonuses, using than to express this choice.
The meanings of the other options are as follows:
-
Then refers to a specific time or sequence of events.
-
The conjunction but is used to indicate contrast or opposition.
-
The conjunction so indicates a consequence or result.
Therefore, the correct answer is, than.
Question : Which program was launched in 2015 to promote financial inclusion and provide banking services to all households in India?
Option 1: Swachh Bharat Abhiyan
Option 2: Make in India
Option 3: Digital India
Option 4: Pradhan Mantri Jan Dhan Yojana
Correct Answer: Pradhan Mantri Jan Dhan Yojana
Solution : The correct answer is (d) Pradhan Mantri Jan Dhan Yojana." The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship financial inclusion program launched by the Government of India. Its objective is to ensure that every household in India has access to basic banking services such as a bank account, a debit card, and access to credit and insurance facilities. The program aims to bring the unbanked population into the formal banking system, promote savings, enable direct benefit transfers, and foster financial literacy. PMJDY has been instrumental in expanding financial inclusion in India by opening millions of bank accounts for previously unbanked individuals and households.
Question : Which of the following is not a function of the RBI?
Option 1: Regulating the banking system
Option 2: Conducting monetary policy
Option 3: Issuing currency notes
Option 4: Regulating the stock market
Correct Answer: Regulating the stock market
Solution : The correct answer is (d) Regulating the stock market.
Regulating the stock market is not a function of the Reserve Bank of India (RBI). The RBI primarily focuses on the regulation and supervision of the banking system in India, ensuring its stability, integrity, and smooth functioning. Its functions include regulating banks and financial institutions, formulating and implementing monetary policy, issuing and managing currency notes, and maintaining the stability of the financial system.
The regulation of the stock market, including the oversight of stock exchanges and market participants, falls under the jurisdiction of the Securities and Exchange Board of India (SEBI). SEBI is the regulatory authority responsible for the development, regulation, and oversight of the securities market in India.
Question : Case Study 34
ABC Ltd. is a conglomerate planning to expand its operations. The company's management is considering the roles of SEBI in the financial market.
Question :
What is the full form of SEBI?
Option 1: Securities and Exchange Board of India
Option 2: Stock Exchange and Banking Institution
Option 3: Securities and Equity Brokerage Institute
Option 4: Stock Exchange and Business Investment
Correct Answer: Securities and Exchange Board of India
Solution : The correct answer is (a) Securities and Exchange Board of India
The full form of SEBI is Securities and Exchange Board of India. SEBI is the regulatory body in India that oversees and regulates the securities market, protecting the interests of investors and promoting the development and regulation of the securities market.
Question : Choose which of the following statements is not correct.
Option 1: Debentures Redemption Investment is made by all companies redeeming the debentures.
Option 2: All India Financial Institutions (AIFIs), Banking Companies and Other Financial Institutions are not required to set aside amount to Debentures Redemption Reserve.
Option 3: Unlisted NBFCs and HFCs are not required to invest 15% of Outstanding Debentures in Specified Securities.
Option 4: Debentures Redemption Reserve can be used only for redemption of debentures.
Correct Answer: Debentures Redemption Investment is made by all companies redeeming the debentures.
Solution : Answer = Debentures Redemption Investment is made by all companies redeeming the debentures.
All India Financial Institutions (AIFIs), Banking Companies and Other Financial Institutions are not required to set aside amounts to Debentures Redemption Reserve.
Unlisted NBFCs and HFCs are not required to invest 15% of Outstanding Debentures in Specified Securities. Debentures Redemption Reserve can be used only for redemption of debentures are true statements, but Debentures Redemption Investment is made by all companies redeeming the debentures.
Hence, the correct option is 1.
