Which of the following is/are Money market instruments?
1. Commercial Bills
2. Corporate Bonds
3. Treasury Bills
4. Inflation Indexed Bonds
Select the correct answer using the code given below:
Correct Answer:
(A)
1 and 3 only
The money market instruments from the list are Commercial Bills and Treasury Bills, while Corporate Bonds and Inflation Indexed Bonds are not.
Money Market Instruments:
These are short-term, highly liquid debt instruments, typically with maturities of less than one year.
Commercial Bills (or Bills of Exchange): Short-term promissory notes issued by businesses to meet their short-term money requirements.
Treasury Bills (T-Bills): Short-term government bonds issued by the Reserve Bank of India.
Not Money Market Instruments:
Corporate Bonds: These are long-term debt instruments issued by corporations, and are traded in the capital market.
Inflation Indexed Bonds: These are long-term debt instruments issued by the government, and are also traded in the capital market.
Ques:
2
The Apex institution in the field of Industrial finance in India is :
Correct Answer:
(C)
Industrial Development Bank of India
Industrial Development Bank of India (IDBI) was established in July, 1964 as an apex financial institution for industrial development in the country. It caters to diversified needs of medium and large scale industries in the form of financial assistance, both direct and indirect. Direct assistance is provided by way of underwriting of or direct subscription to industrial securities, soft loans, project loans etc. while indirect assistance is provided in the form of refinance facilities to industrial concerns. In 2004, Reserve Bank of India incorporated IDBI as a ‘scheduled bank’ under the RBI Act, 1934.
Ques:
3
BIFR is related to :
Correct Answer:
(A)
Reconstruction and financing of sick units
BIFR (Board for Industrial and Financial Reconstruction) was an agency of the Government of India, part of the Department of Financial Services of the Ministry of Finance. It was related to reconstruction and financing of rich units. Its objective was to determine sickness of industrial companies and to assist in reviving those that may be viable and shutting down the others. On 1 December 2016, the NDA government dissolved BIFR and referred all proceedings to the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as per provisions of Insolvency and Bankruptcy Code.
Ques:
4
Match List-I with List-II and select the correct answer using the codes given below the lists :
List-I List-II
(Type of Organization) (Important Features)
A. Sole trader 1. Large number risk bearers
B. Partnership 2. Betterment of weaker sections
C. Co-operatives 3. Contractual Relationship
D. Public Limited Company 4. Unlimited liability
Codes :
A B C D
Correct Answer:
(B)
4 3 2 1
In a sole trader/sole proprietorship firm, the liability of the proprietor is unlimited, i.e., it is in addition to the capital investment in the firm. Partnership is a contractual relationship that means a partnership is entered into by an agreement which can be written or oral. The primary goal of cooperative is to serve the members and not to make profit. In a public limited company, the company raises capital from the sale of its shares, so there is a large number of risk takers.
Ques:
5
What does venture capital mean?
Correct Answer:
(B)
A long-term start-up capital provided to new entrepreneurs
Venture Capital (VC) is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institution. Hence, venture capital is the long-term initial capital made available for new entrepreneurs.
Ques:
6
Which one of the following statements appropriately describes the 'fiscal stimulus'?
Correct Answer:
(B)
It is an intense affirmative action of the Government to boost economic activity in the country.
A fiscal stimulus is a package comprising tax rebates and incentives. It is used by the government to stimulate the economy and prevent the country from a financial crisis. A fiscal stimulus package of tax rebates and incentives boosts spending. As spending increases demand, it creates a situation where employment rises. This, in turn, leads to a rise in income, which proportionately boosts spending. As this continues, the economy recovers from collapse.
Ques:
7
Which one of the following is NOT an initiative for industrial development?
Correct Answer:
(D)
Digital India
Make in India, Ease of Doing Business and Start-up India are initiatives to facilitate investment and development of manufacturing and industrial sector in India. While Digital India is not an initiative for industrial development. It is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. Digital India consists of three core components: the development of secure and stable digital infrastructure, delivering government services digitally, and universal digital literacy.
Ques:
8
Which act was enacted in India to regulate the licensing of Industrial activities?
Correct Answer:
(B)
Industrial Development Regulation Act
The Industries Development and Regulation Act was enacted on 31st October 1951 for the development and regulation of industries. The Act contains 31 sections and 3 schedules.
Ques:
9
Under the IRDA, what was the criterion for obtaining an industrial license for setting up a manufacturing unit?
Correct Answer:
(D)
Approval from the Central Government
Ques:
10
Which initiative replaced the concept of industrial licensing with a system of liberalization and deregulation in India?
Correct Answer:
(C)
New Economic Policy
New Economic Policy 1991 liberalised trade and investment policies that focused on exports, industrial deregulation, disinvestment, public sector changes, and capital and financial sector reforms.