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.
Answer laterQuestion : 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 3.
Option 1: never
Option 2: none
Option 3: not
Option 4: no
Correct Answer: no
Solution : The fourth option is the correct choice.
The passage recommends making bankers personally liable for losses to curb gaming in the banking sector. The word no is appropriate in this context to emphasise the absence or lack of personal consequences for bankers, aligning with the intended meaning of removing the sense of impunity for their actions.
Therefore, the correct answer is, no.
Question : Which of the following is not a function of a stock exchange?
Option 1: Facilitating trading of securities
Option 2: Ensuring fair and transparent transactions
Option 3: Regulating the banking sector
Option 4: Providing liquidity to investors
Correct Answer: Regulating the banking sector
Solution : The correct answer is (c) Regulating the banking sector.
Regulating the banking sector is not a function of a stock exchange. Stock exchanges primarily serve as marketplaces where securities such as stocks, bonds, and derivatives are bought and sold. They facilitate the trading of securities between buyers and sellers.
However, regulating the banking sector is typically the responsibility of regulatory bodies such as central banks and financial regulatory authorities. These entities oversee and regulate banks, ensuring their compliance with banking laws, capital requirements, and prudential regulations.
Question : Assertion: A large segment of workforce continues to depend on primary activities to make a living.
Reason: In India, trade, commerce, banking, tourism and related services are developing faster than production activities.
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, but the reason is not the correct explanation of the assertion.
Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
The assertion that a large segment of the workforce continues to depend on primary activities to make a living is true, as many individuals in India are employed in agriculture, fishing, mining, and other primary sectors.
However, the reason provided, stating that trade, commerce, banking, tourism, and related services are developing faster than production activities, does not necessarily explain why a large segment of the workforce depends on primary activities. The reason does highlight the growth of these sectors in India, but it does not directly correlate with the dependence on primary activities for livelihood.
In summary, both the assertion and reason are true, but the reason does not provide the correct explanation for the assertion.
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 1.
Option 1: feasible
Option 2: impossible
Option 3: penetrable
Option 4: liable
Correct Answer: impossible
Solution : The second option is the correct choice.
The passage suggests that eliminating gaming in the banking sector seems extremely challenging or difficult. The word impossible conveys a sense of extreme difficulty more strongly than the other options.
The meanings of the other options are as follows:
-
Feasible means something that is possible or practical.
-
Penetrable means capable of being penetrated or entered.
-
Liable is someone who is responsible or accountable.
Therefore, the correct answer is, impossible.
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. 4.
Option 1: secret
Option 2: confidential
Option 3: regular
Option 4: common
Correct Answer: confidential
Solution : The most appropriate choice is the second option.
The term confidential refers to information that is private or not meant to be disclosed to others. In the context of the passage, it discusses the theft of personal and confidential data.
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. 3.
Option 1: drawbacks
Option 2: snag
Option 3: hitch
Option 4: liabilities
Correct Answer: drawbacks
Solution : The most appropriate choice is the first option.
In the context of the passage, the term drawbacks refers to the negative aspects or disadvantages that come with rapid technological progress.
Question : Which of the following is not a function of the Reserve Bank of India (RBI)?
Option 1: Issuing currency notes
Option 2: Regulating the banking system
Option 3: Regulating the securities market
Option 4: Managing the foreign exchange reserves of India
Correct Answer: Regulating the securities market
Solution : The correct answer is (c). Regulating the securities market
The Reserve Bank of India (RBI) performs multiple functions, but regulating the securities market is not one of them. The correct answer is c) Regulating the securities market.
The functions of the Reserve Bank of India include:
a) Issuing currency notes: The RBI is responsible for the issuance and management of currency notes and coins in India.
b) Regulating the banking system: The RBI regulates and supervises banks and financial institutions in India to ensure their stability, soundness, and proper functioning.
d) Managing the foreign exchange reserves of India: The RBI manages and maintains the foreign exchange reserves of India, which are crucial for the stability of the country's external sector.
While the securities market in India is regulated by the Securities and Exchange Board of India (SEBI), the RBI collaborates with SEBI and plays a supportive role in ensuring the smooth functioning and stability of the overall financial system.
Question : In what way has Ain-i-Akbari contributed to the understanding of Mughal economic policies?
Option 1: By detailing trade routes and partnerships
Option 2: By outlining the taxation and revenue collection system
Option 3: By describing the currency and banking system
Option 4: By explaining the import-export regulations
Correct Answer: By outlining the taxation and revenue collection system
Solution : Correct Option: Option 2
Explanation: Ain-i-Akbari has contributed to the understanding of Mughal economic policies by outlining the taxation and revenue collection system, which was a crucial aspect of the empire's economic management.
Question : Which of the following organizations is responsible for setting international standards for banking and financial transactions, including foreign exchange operations?
Option 1: World Trade Organization (WTO)
Option 2: International Monetary Fund (IMF)
Option 3: Bank for International Settlements (BIS)
Option 4: World Bank
Correct Answer: Bank for International Settlements (BIS)
Solution : The correct option is c) Bank for International Settlements (BIS)
The Bank for International Settlements (BIS) is responsible for setting international standards for banking and financial transactions, including foreign exchange operations. The BIS is an international financial institution that serves as a bank for central banks. It provides a platform for central banks to exchange information, collaborate on monetary and financial matters, and promote monetary and financial stability worldwide. The BIS plays a key role in developing and promoting best practices in the banking and financial industry, including the regulation and supervision of foreign exchange operations. The World Trade Organization (WTO) focuses on international trade policies, the International Monetary Fund (IMF) deals with global monetary cooperation and financial stability, and the World Bank primarily supports development projects and provides financial assistance to countries.
