1. What is the revised interest rate of Employee’s Provident Fund (EPF) for 2018-19?

A. 8.45% B. 8.55% C. 8.35% D. 8.65% E. None of these

2. What is the revised GDP growth of India for the financial year 2019-20, as per India Ratings and Research company?

A. 7.2% B. 7.1% C. 7.3% D. 7.5% E. None of these

3. Name the Cryptocurrency Exchange in India, which has launched the first Indian Platform for Wholesale Cryptocurrency Trading?

A. Zebpay B. Belfrics C. BuyUcoin D. Coinsecure E. None of these

4. Which motif is depicted in the back side of the new Rs.20 denomination note?

A. Mangalyaan B. Ellora caves C. Hampi with Chariot D. SanchiStupa E. None of these

5. Reserve Bank of India (RBI) has extended the ombudsman scheme coverage to non-deposit taking Non-banking Financial Companies (NBFCs) having asset size of how much worth?

A. 100 crore B. 50 crore C. 20 crore D. 75 crore E. None of these

Answers and Explanations
1. Answer - Option D
Explanation -
The Department of Financial Services, a wing of the Ministry of Finance, has approved an Employee’s Provident Fund (EPF) interest rate hike of 10 basis point to 8.65 percent for 2018-19, as decided by the retirement fund body Employee’s Provident Fund Organisation (EPFO). This move will benefit more than 6 crores formal sector workers. Earlier in 2017-18, the interest rate on EPF was 8.55 percent. In February 2019, the EPFO’s apex decision making body, the Central Board of Trustees headed by Labour Minister SantoshGangwar, had decided to hike the interest rate on EPF to 8.65 percent for 2018-19 from 8.55 percent for 2017-18. This hike was the first increase in the last three years.
2. Answer - Option C
Explanation -
India’s GDP growth projection for 2019-20 lowered to 7.3 percent by India Ratings and Research, a Fitch Group company, due to below normal monsoon prediction, continued agrarian distress and loss of momentum in industrial output. The earlier projected GDP growth was 7.5 percent.Other reason for lowered growth projection is slow progress on cases referred to the National Company Law Tribunal under Insolvency and Bankruptcy Code, 2016. Investment Expenditure Growth which is measured by gross fixed capital formation (GFCF) has also been downgraded to 9.2 percent from the earlier forecast of 10.3 percent for the year 2019-20, is another reason cited for lowering the growth forecast.
3. Answer - Option C
Explanation -
BuyUcoin, second oldest Cryptocurrency Exchange in India, has introduced a new and unique platform for wholesale cryptocurrency trading. This platform works on ‘free trading model’ which means it charges zero fee on any trade. This wholesale platform also known as OTC (Over-the-counter) Desk allows users to trade on a large scale with low price fluctuations. This new platform will help to improve the problem of liquidity of cryptocurrency in Indian market. This will also help in quicker transactions, better prices and market stability.
4. Answer - Option B
Explanation -
The Reserve Bank of India (RBI) will issue new Rs 20 denomination banknotes having a base colour of greenish -yellow with size of 63 X 129 mm. The first Rs 20 notes were issued in the Mahatma Gandhi Series in August 2001. The new note will have a motif of Ellora caves on the dorsal side.
5. Answer - Option A
Explanation -
The Reserve Bank of India (RBI) extended the ombudsman scheme coverage to non-deposit taking (NBFCs) Non-banking Financial Companies having asset size of Rs.100 crore or higher. This was notified in the Statement of Developmental and Regulatory Policies under the Monetary Policy Statement.The of this was to provide a cost-free and swift complaint-redressal mechanism relating to shortage in the services, concerning loan and other issues by NBFCs under the scheme. The scheme before the extension to some categories of NBFCs was effective for deposit-accepting NBFCs.

1. Certificate of Deposit (CD) is a _____ instrument

A. Shot term B. Long term C. Negotiable money market instrument D. Unsecured money market E. None of these

2. The objective of the Capital market operations is ______

A. To raise funds from the public with the aim to put the investor’s wealth to productive long-term use B. To raise the value of a country’s currency C. To search for the best price of capital goods D. All the above E. None of the above

3. A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded is known as __________

A. Money market B. Stock Market C. Derivative market D. Equity market E. None of these

4. Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?

A. Supervising the working of the stock Exchanges B. Underwriting new Capital Issues C. Regulating the working of depositories, custodians of securities D. Promoting the development of a healthy Capital market E. To protect the interests of investors in securities market

5. The amount to be paid to the holder of a financial obligation at the obligation’s maturity is known as _________.

A. Paid-up value B. Surrender Value C. Maturity value D. Sum Assured E. None of these

Answers and Explanations
1. Answer - Option C
Explanation -
Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period.
2. Answer - Option A
Explanation -
The Capital market in India mainly operates through its two apex stock exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Its objective is to raise funds from public and put the investor’s wealth to productive long -term use. It is used for long-term credit. In Capital market borrowing and lending of money takes place for more than 1 years.
Composition of Capital Market- It is mainly divided into three categories

a) Securities Market b) Development Financial Institutions c) Financial Intermediaries

3. Answer - Option A
Explanation -
A segment of the financial market in which financial instrument with high liquidity and very short maturities are traded. Some of the money market instruments are treasury bill etc.
4. Answer - Option B
Explanation -
Underwriting new Capital Issues is not a function of the Securities and Exchange Board of India (SEBI). As the name suggests, the main focus of this function of SEBI is to protect the interest of investor and security of their investment. The various functions of SEBI are: To protect the interests of investors in securities market. To promote the development of securities market. To regulate the business in stock exchanges and any other securities markets.
5. Answer - Option C
Explanation -
Maturity value is the amount payable to an investor at the end of a debt instrument’s holding period (maturity date). For most bonds, the maturity value is the face amount of the bond. For some certificates of deposit (CD) and other investments, all of the interest is paid at maturity.

1. How much percent of life insurer’s premium income was grown for the year 2019, as per Insurance Regulatory and Development Authority of India (IRDAI)?

A. 15% B. 14% C. 13% D. 11% E. None of these

2. Which among the following infrastructure major has bagged orders worth nearly Rs. 2,360 Crore for rural development projects?

A. Larsen and Toubro (L&T) B. Delhi Land & Finance Limited (DLF) C. Tata Group D. Jaiprakash Associates Ltd. E. Unitech Limited

3. As per the report by the World Bank, India’s power sector has an efficiency gap that costs the Indian economy about __________ of GDP per year.

A. 3.2% B. 4% C. 2.8% D. 5% E. 6.6%

4. In February 2019, the Reserve Bank of India has doubled the limit for ‘Bulk Deposits’ to __________.

A. ₹ 1 Crore B. ₹ 50 Lakh C. ₹ 2 Crore D. ₹ 3 Crore E. ₹ 5 Crore

5. The Reserve Bank of India will infuse Rs ________ crore into the banking system through Open Market Operations in 2019.

A. 10,000 B. 15,000 C. 20,000 D. 25,000 E. 30,000

Answers and Explanations
1. Answer - Option D
Explanation -
11 percent of life insurer’s premium income was grown for the year 2019, as per Insurance Regulatory and Development Authority of India (IRDAI)
2. Answer - Option A
Explanation -
The construction arm of infrastructure major Larsen and Toubro (L&T) has bagged orders worth nearly Rs. 2,360 Crore for rural development projects. L&T’s Water and Effluent Treatment and Transportation Infrastructure Business have secured order worth Rs. 1,281 Crore from the Andhra Pradesh Capital Region Development Authority (AP CRDA). Another turnkey order worth Rs. 1,076 Crore has been secured by Water and Effluent Treatment Business from the Madhya Pradesh Jal Nigam Maryadit (MPJNM) for the execution of multi village rural water supply schemes in Jabalpur, Narsinghpur, Seoni and Damoh districts of Madhya Pradesh
3. Answer - Option B
Explanation -
According to the report titled ‘In the Dark: How Much Do Power Sector Distortions Cost South Asia’ by the World Bank, India’s power sector has an efficiency gap that costs the Indian economy about 4% of GDP a year which is equivalent to $86 billion in the fiscal year 2016. The report analyzed the overall societal costs – instead of just the fiscal costs – of subsidies, blackouts and other distortions in the power sector.
4. Answer - Option C
Explanation -
Reserve Bank of India has doubled the limit for bulk deposits from ₹ 1 Crore to ₹ 2 Crore.This would enhance the operational freedom of banks. Commercial banks offer a lower rate of interest on bulk deposits.Banks would maintain their bulk deposit interest rate cards in the core banking system for supervisory review.
5. Answer - Option D
Explanation -
The Reserve Bank of India (RBI) will infuse Rs 25,000 crore into the banking system through Open Market Operations (OMO). The RBI will conduct purchase of government securities through multi-security auction using the multiple price method. The decision on OMO is based on review of the evolving liquidity conditions in the banking system.