MCQ
upsc-p1-economy-financial-markets-sebi MCQ - Practice Questions with Answers
Solve 9 upsc-p1-economy-financial-markets-sebi questions for RAS/RPSC preparation.
Practice questions
Q1With reference to market infrastructure institutions, consider the following statements: 1. Stock exchanges provide trading platforms. 2. Clearing corporations manage settlement risk by standing between buyers and sellers. 3. Depositories determine whether a security is a sound investment. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 2 are correct. Exchanges provide trading platforms and clearing corporations manage settlement risk. Depositories provide electronic holding and transfer infrastructure; they do not judge investment merit.
Q2Match List I with List II and select the correct answer using the code given below. List I A. Stock exchange B. Clearing corporation C. Depository D. Securities Appellate Tribunal List II 1. Holds securities in electronic form 2. Provides a platform for trading 3. Hears appeals against specified securities-regulator orders 4. Stands between buyers and sellers and manages settlement risk
A stock exchange provides the trading platform, a clearing corporation manages settlement risk, a depository holds securities electronically, and the Securities Appellate Tribunal hears specified appeals. The correct matching is A-2, B-4, C-1, D-3.
Q3With reference to the legal and regulatory framework of securities markets in India, consider the following statements: 1. Union List Entry 48 covers stock exchanges and futures markets. 2. The Securities Contracts Regulation Act, 1956 governs recognised stock exchanges and securities contracts. 3. SEBI regulates ordinary bank deposits as part of its securities-market mandate. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 2 are correct. Legislative competence for stock exchanges and futures markets is supported by Union List Entry 48, and the 1956 Act governs recognised exchanges and securities contracts. SEBI does not regulate ordinary bank deposits.
Q4Arrange the following instruments from the shortest to the longest stated maturity: 1. A 91-day Treasury bill 2. Notice money 3. Call money 4. A 364-day Treasury bill Select the correct answer using the code given below.
Call money is overnight and notice money covers 2 to 14 days. A 91-day Treasury bill comes next, followed by a 364-day Treasury bill. The required order is 3-2-1-4.
Q5Arrange the following developments in chronological order, beginning with the earliest: 1. Recommendations of the L. C. Gupta Committee on exchange-traded derivatives 2. Review by the Bimal Jalan Committee of ownership and governance of market infrastructure institutions 3. Pherwani Committee support for modernisation and new exchange architecture 4. Incorporation of the National Stock Exchange Select the correct answer using the code given below.
The Pherwani Committee belongs to 1991, the National Stock Exchange was incorporated in 1992, the L. C. Gupta Committee reported in 1998, and the Bimal Jalan Committee reviewed market infrastructure institutions in 2010. Hence the order is 3-4-1-2.
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6Match List I with List II and select the correct answer using the code given below. List I A. Section 11 of the SEBI Act B. Section 11B of the SEBI Act C. Section 11C of the SEBI Act D. Section 15K of the SEBI Act List II 1. Statutory basis of the Securities Appellate Tribunal 2. Investigation into suspected securities-market violations 3. Protection of investors and development and regulation of the securities market 4. Directions in the interest of investors or the securities market
7With reference to settlement and investor protection in the Indian securities market, consider the following statements: 1. SEBI introduced optional beta T+0 rolling settlement in the equity cash market in 2024 alongside the existing T+1 cycle. 2. Faster settlement can reduce counterparty risk. 3. SEBI's review of an offer document guarantees the commercial success of the issue. Which of the statements given above are correct? Select the correct answer using the code given below.
8Consider the following statements about SEBI's regulation of public issues: Statement I: SEBI's review of an offer document does not make the security risk-free. Statement II: SEBI's disclosure-based approach requires material facts to be disclosed but does not approve the commercial wisdom of an issue. Which one of the following is correct in respect of the above statements?
9With reference to financial markets in India, consider the following statements: 1. Call money is overnight borrowing and lending. 2. Notice money covers 15 days to one year. 3. Treasury bills are issued at a discount and redeemed at face value. Which of the statements given above are correct? Select the correct answer using the code given below.