1. An organization such as a bank or insurance company that buys and sells large quantities of securities is called ------

A. Major Investor B. Minor Investor C. Institutional Investor D. Giant E. None of these

Answer: Option C
Explanation: Institutional investor is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, investment advisors, endowments, and mutual funds.
2. A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is called -----.

A. Indian Depository Receipt (IDR) B. Commercial Paper C. Promissory Note D. Indian Depository Revenue E. None of these

Answer: Option A
Explanation: A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company is known as Indian Depository Receipt (IDR).
3. Which one of the following is the regulator of Capital Market in India?

A. RBI B. SEBI C. SIDBI D. IRDA E. NSE

Answer: Option B
Explanation: The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1988. SEBI is the regulator of Capital Market in India.
4. A currency swap is an instrument to manage ----

A. Interest rate and currency risk B. Currency risk C. Interest rate risk D. Cash flows in a different currency E. None of these

Answer: Option D
Explanation: A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.
5. What is the minimum capital requirement for new on tap license to set up Private Banks?

A. Rs. 200 crore B. Rs. 300 crore C. Rs. 500 crore D. Rs. 600 crore E. None of these

Answer: Option C
Explanation: As per RBI guidelines, the minimum capital requirement for New on tap license to set up Private Banks is Rs. 500 crore. The validity of the in-principle approval issued by the RBI will be 18 months from the date of granting in-principle approval.

1. Up to what amount of existing debt the Reserve Bank has allowed a one-time restructuring for the companies which have defaulted on payment, but the loans given to them have continued to be classified as standard assets?

A. Rs. 20 crore B. Rs. 25 crore C. Rs. 15 crore D. Rs. 10 crore E. Rs. 50 crore

Answer: Option B
Explanation: Reserve Bank allowed a one-time restructuring of existing debt up to Rs. 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.
2. IRCTC, the Railways’ subsidiary, will offer insurance of up to INR for free for air passengers who book their tickets through its portal.

A. 25 lakh B. 10 lakh C. 50 lakh D. 5 lakh E. 35 lakh

Answer: Option C
Explanation: Indian Railway Catering and Tourism Corporation (IRCTC), the Railways’ subsidiary, will offer insurance of up to INR50 lakh for free for air passengers who book their tickets through its portal. IRCTC has tied up with Bharti-Axa for the offer.
3. Sri Lanka’s Central Bank announced that the Reserve Bank of India (RBI) has agreed to provide ------ under a swap arrangement to boost the island nation’s reserves.

A. USD 400 million B. USD 100 million C. USD 200 million D. USD 300 million E. USD 250 million

Answer: Option A
Explanation: Sri Lanka’s Central Bank announced that the Reserve Bank of India (RBI) has agreed to provide USD 400 million under a swap arrangement to boost the island nation’s reserves.
4. The 32nd Meeting of GST Council was concluded in New Delhi. The Council has decided to increase the GST registration threshold limit to ----- from 20 lakh rupees.

A. 40 lakh rupees B. 35 lakh rupees C. 38 lakh rupees D. 45 lakh rupees E. 30 lakh rupees

Answer: Option A
Explanation: The 32nd Meeting of GST Council was concluded in New Delhi. The Limit of annual turnover for composition scheme increased to 1.5 crore rupees effective from April 1, 2019. The Council has decided to increase the GST registration threshold limit to 40 lakh rupees from 20 lakh.
5. The government has announced ----- rupee award for states that would complete the household electrification early under the Saubhagaya scheme.

A. 200 crore B. 50 crore C. 150 crore D. 10 crore E. 100 crore

Answer: Option E
Explanation: The government has announced 100 crore rupee award for states that would complete the household electrification early under the Saubhagaya scheme. Apart from discoms, employees would also collectively get 50 lakh rupees award for completing the task of electrifying households under the scheme.

1. ASBA scheme is related to the purchase of ----.

A. IPO B. BCP C. CCD D. DTCs E. None of these

Answer: Option A
Explanation: ASBA (Applications Supported by Blocked Amount) is a process developed by the India's Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are allotted to them.
2. A rise in Sensex means -----.

A. A rise in prices of shares of all companies registered with BSE B. A rise in prices of shares of all companies registered with NSE C. An overall rise in prices of top 30 shares of group of companies registered with BSE. D. A rise in prices of shares of all companies belonging to a group of companies registered with BSE. E. None of these

Answer: Option C
Explanation: Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. A rise in Sensex means overall rise in prices of top 30 shares of group of companies registered with BSE.
3. The Cash Reserve Ratio (CRR) which is to be maintained with the Reserve Bank of India is maintained in which of the following ways?

A. Minimum cash reserves B. Gold C. Approved Securities D. Both A and B E. All of the above

Answer: Option A
Explanation: Every commercial bank has to keep certain minimum cash reserves with RBI. This is known as the Cash Reserve Ratio (CRR). Apart from the CRR, banks are required to maintain liquid assets such as precious metals (gold) or other approved securities, other than the cash. This is known as the Statutory Liquidity ration (SLR).
4. In the capital market, the term arbitrage is used with reference to ------

A. Purchase of securities to cover the sale B. Sale of securities to reduce the loss on purchase C. Simultaneous purchase and sale of securities to make profits from price D. Variation in different markets E. None of the above

Answer: Option C
Explanation: The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.
5. In which of the following accounts is operation by cheques permitted?

A. Savings bank accounts and fixed deposit accounts B. Current accounts and fixed deposit accounts C. Savings bank accounts and floating loan accounts D. Savings bank accounts and cash accounts E. Savings bank accounts and current accounts

Answer: Option E
Explanation: Both savings bank accounts and current accounts are allowed to operate by cheques