UNIT I:

1.​ Which of the following is NOT a primary objective of India's regulatory

environment for business?​
A) Fostering robust competition​
B) Safeguarding consumer rights​
C) Maximizing government revenue through high taxation​
D) Promoting sustainable economic expansion​
Answer: C​

2.​ When was the Reserve Bank of India (RBI) established?​

A) April 1, 1949​
B) January 1, 1934​
C) April 1, 1935​
D) July 12, 1982​
Answer: C​

3.​ The RBI was nationalized in which year?​

A) 1935​
B) 1947​
C) 1949​
D) 1969​
Answer: C​

4.​ Which of the following is the primary objective of the RBI's monetary policy?​
A) Maximizing employment​
B) Maintaining price stability while keeping in mind growth​
C) Ensuring a strong rupee against all major currencies​
D) Providing unlimited credit to the government​
Answer: B​

5.​ Which entity has the sole monopoly for issuing currency notes in India, with
one exception?​
A) Ministry of Finance​
B) Commercial Banks​
C) Reserve Bank of India​
D) State Bank of India​
Answer: C​

6.​ What is the exception to the RBI's monopoly on issuing currency notes?​
A) Ten-rupee notes​
B) Fifty-rupee notes​
 C) One-rupee notes and coins​
D) Two-thousand-rupee notes​
Answer: C​

7.​ The RBI acts as the "Lender of Last Resort" for which type of banks?​
A) Non-scheduled banks​
B) Regional Rural Banks​
C) All commercial banks​
D) Scheduled Commercial Banks (SCBs)​
Answer: D​

8.​ Banks included in the Second Schedule of the Reserve Bank of India Act,
1934, are known as:​
A) Non-scheduled banks​
B) Cooperative banks​
C) Scheduled banks​
D) Local area banks​
Answer: C​

9.​ What is the maximum permissible Foreign Direct Investment (FDI) in public
sector banks in India through the government approval route?​
A) 20%​
B) 49%​
C) 74%​
D) 100%​
Answer: A​

10.​Which type of Non-Banking Financial Company (NBFC) is specifically

restricted to acceptance of demand deposits and provision of payment and
remittance services?​
A) Micro Finance Institution (MFI)​
B) Housing Finance Company (HFC)​
C) Payment Bank​
D) Infrastructure Finance Company (IFC)​
Answer: C​

11.​Under the RBI's Scale-Based Regulatory (SBR) Framework, which layer

comprises all non-deposit-taking NBFCs with an asset size of ₹1000 crore
and above, as well as all deposit-taking NBFCs?​
A) NBFC-Base Layer (NBFC-BL)​
B) NBFC-Middle Layer (NBFC-ML)​
C) NBFC-Upper Layer (NBFC-UL)​
D) NBFC-Top Layer (NBFC-TL)​
 Answer: B​

12.​What is the minimum capital requirement for NBFC-MFIs in Northeastern

states?​
A) ₹1 crore​
B) ₹2 crore​
C) ₹5 crore​
D) ₹10 crore​
Answer: B​

13.​What percentage of an NBFC-MFI's total assets must be in the form of

microloans (qualifying assets)?​
A) At least 50%​
B) At least 60%​
C) At least 75%​
D) At least 85%​
Answer: D​

14.​What is the maximum total indebtedness allowed for a borrower from an

NBFC-MFI?​
A) ₹35,000​
B) ₹50,000​
C) ₹60,000​
D) ₹120,000​
Answer: B​

15.​Regional Rural Banks (RRBs) were established based on the

recommendations of which committee?​
A) Narasimham Committee​
B) Pherwani Committee​
C) V. Balakrishna Eradi Committee​
D) CRAFICARD Committee​
Answer: A​

16.​What is the ownership ratio of the Government of India, Sponsored Bank, and
concerned State Government in a Regional Rural Bank (RRB)?​
A) 35:50:15​
B) 50:35:15​
C) 15:50:35​
D) 35:15:50​
Answer: B​

17.​Which of the following is NOT a function of Regional Rural Banks (RRBs)?​

A) Providing basic banking and financial services in rural areas​
 B) Carrying out government operations like MGNREGA wage disbursement​
C) Providing long-term corporate loans for large infrastructure projects​
D) Promoting savings and thrift among rural populations​
Answer: C​

18.​When was NABARD established?​

A) April 1, 1935​
B) July 12, 1982​
C) May 22, 2012​
D) June 1, 2016​
Answer: B​

19.​NABARD was established based on the recommendations of which

committee?​
A) Narasimhan Committee​
B) Pherwani Committee​
C) CRAFICARD Committee​
D) V. Balakrishna Eradi Committee​
Answer: C​

20.​Which of the following is a financial function of NABARD?​

A) Promoting Self Help Group-Bank Linkage Programme (SHG-BLP)​
B) Providing refinance support to Cooperative Banks and RRBs​
C) Supporting Tribal Development projects​
D) Conducting skill development programs for rural youth​
Answer: B​

21.​The Rural Infrastructure Development Fund (RIDF) was set up with NABARD
by which institution?​
A) Ministry of Finance​
B) Reserve Bank of India (RBI)​
C) SIDBI​
D) EXIM Bank​
Answer: B​

22.​Which of the following is a developmental function of NABARD?​

A) Managing the Long-Term Irrigation Fund (LTIF)​
B) Providing short-term crop loans to farmers​
C) Promoting Off Farm Producer Organisations (OFPOs)​
D) Managing the Warehouse Infrastructure Fund (WIF)​
Answer: C​

23.​When was the Export-Import Bank of India (EXIM Bank) established?​

A) 1957​
 B) 1982​
C) 1990​
D) 1992​
Answer: B​

24.​What is the core mandate of EXIM Bank?​

A) Regulating foreign exchange markets​
B) Financing, facilitating, and promoting India's international trade​
C) Providing microfinance to rural entrepreneurs​
D) Insuring domestic trade transactions​
Answer: B​

25.​Which of the following is a key service offered by EXIM Bank?​

A) Providing credit ratings for domestic companies​
B) Managing government accounts and treasuries​
C) Extending Lines of Credit to foreign governments for developmental
projects​
D) Regulating the issuance of capital in India​
Answer: C​

26.​When was ECGC Limited (formerly Export Credit Guarantee Corporation of

India Limited) established?​
A) July 1957​
B) April 1990​
C) November 1992​
D) October 2003​
Answer: A​

27.​ECGC operates under the administrative control of which Ministry?​

A) Ministry of Finance​
B) Ministry of Corporate Affairs​
C) Ministry of Commerce and Industry​
D) Ministry of External Affairs​
Answer: C​

28.​What is the primary objective of ECGC?​

A) To provide long-term project finance to large industries​
B) To strengthen export promotion by covering the risk of exporting on credit​
C) To regulate the insurance sector in India​
D) To manage foreign exchange reserves​
Answer: B​

29.​Which of the following risks does ECGC protect exporters from?​

A) Commercial risks (e.g., buyer insolvency)​
 B) Political risks (e.g., government actions in importing country)​
C) Both A and B​
D) Only risks related to natural disasters​
Answer: C​

30.​When was the Small Industries Development Bank of India (SIDBI)

established?​
A) April 2, 1990​
B) July 12, 1982​
C) October 14, 2003​
D) June 1, 2016​
Answer: A​

31.​SIDBI serves as the Principal Financial Institution for the promotion, financing,
and development of which sector?​
A) Large Scale Industries​
B) Infrastructure Projects​
C) Micro, Small and Medium Enterprise (MSME) sector​
D) Agricultural Sector​
Answer: C​

32.​Which of the following is a key operational area of SIDBI?​

A) Direct Lending​
B) Indirect Lending​
C) Fund of Funds​
D) All of the above​
Answer: D​

33.​SIDBI acts as the Project Management Agency for which of the following
Government schemes?​
A) PM Vishwakarma Scheme​
B) Production Linked Incentive (PLI) Schemes for Telecom & Networking
Products​
C) Scheme for Strengthening of Pharmaceuticals Industry (SPI)​
D) All of the above​
Answer: D​

34.​Which digital platform is developed and managed by SIDBI for government

schemes?​
A) MyGov.in​
B) Jansamarth.in​
C) Digital India Portal​
D) UMANG App​
 Answer: B​

35.​What is the minimum daily stipend provided for training under the PM
Vishwakarma Scheme, supported by SIDBI?​
A) ₹200​
B) ₹300​
C) ₹500​
D) ₹1,000​
Answer: C​

36.​Which regulatory body oversees Microfinance Institutions (MFIs) in India

under the Non-Banking Financial Company (NBFC) category?​
A) SEBI​
B) IRDAI​
C) RBI​
D) PFRDA​
Answer: C​

37.​What is the minimum tenure for microloans exceeding ₹15,000 provided by

NBFC-MFIs?​
A) Not less than 12 months​
B) Not less than 18 months​
C) Not less than 24 months​
D) Not less than 36 months​
Answer: C​

38.​Which of the following is a key objective of the Insurance Regulatory and

Development Authority of India (IRDAI)?​
A) To manage the monetary policy of the country​
B) To protect the interests of policyholders​
C) To regulate the stock exchanges​
D) To provide credit to the agricultural sector​
Answer: B​

39.​IRDAI is a statutory body formed under which Act?​

A) Insurance Act, 1938​
B) IRDA Act, 1999​
C) Companies Act, 2013​
D) RBI Act, 1934​
Answer: B​

40.​The Pension Fund Regulatory and Development Authority (PFRDA) is

responsible for regulating which ecosystem?​
A) Mutual Fund System​
 B) Banking System​
C) National Pension System (NPS)​
D) Insurance System​
Answer: C​

41.​When did PFRDA gain its statutory status?​

A) August 23, 2003​
B) December 22, 2003​
C) September 19, 2013​
D) January 1, 2004​
Answer: C​

42.​Which of the following is NOT a function of PFRDA?​

A) Educating subscribers on pension issues​
B) Approving pension schemes and investment norms​
C) Directly managing individual pension fund investments​
D) Adjudicating disputes between intermediaries and subscribers​
Answer: C​

43.​What is the primary objective of the RBI's "Utkarsh 2022" vision statement?​
A) To achieve excellence in statutory functions and enhance public trust​
B) To nationalize all private banks​
C) To completely eliminate inflation​
D) To become the world's largest central bank​
Answer: A​

44.​Which of the following is a characteristic of a non-scheduled bank?​

A) Included in the Second Schedule of the RBI Act, 1934​
B) Entitled to borrow from the RBI​
C) Generally smaller and serve localized markets​
D) Form the backbone of the country's banking sector​
Answer: C​

45.​What is the main purpose of the Rural Infrastructure Development Fund

(RIDF)?​
A) To provide direct loans to farmers​
B) To support rural infrastructure projects​
C) To manage foreign exchange reserves​
D) To regulate microfinance institutions​
Answer: B​
46.​When was the Securities and Exchange Board of India (SEBI) granted
statutory powers?​
A) 1988​
B) 1992​
C) 1999​
D) 2002​
Answer: B​

47.​Which of the following powers does SEBI possess?​

A) Quasi-judicial​
B) Quasi-executive​
C) Quasi-legislative​
D) All of the above​
Answer: D​

48.​What is the primary objective of SEBI?​

A) To manage the country's monetary policy​
B) To protect investor interests, ensure market integrity, and promote the
development of the securities market​
C) To provide long-term finance to infrastructure projects​
D) To regulate the insurance industry​
Answer: B​

49.​Which SEBI regulation primarily governs the issuance of capital by companies

in India?​
A) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015​
B) SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
(ICDR)​
C) SEBI (Prohibition of Insider Trading) Regulations, 2015​
D) SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011​
Answer: B​

50.​What is the minimum percentage of shares that must generally be offered to

the public in an IPO, as per SEBI guidelines (Minimum Public Shareholding -
MPS)?​
A) 10%​
B) 15%​
C) 20%​
D) 25%​
Answer: D​
 ​

51.​Which of the following is NOT considered a Market Infrastructure Institution

(MII) by SEBI?​
A) Stock Exchanges​
B) Clearing Corporations​
C) Depositories​
D) Commercial Banks​
Answer: D​

52.​Which of the following is a key clearing corporation in India that handles

clearing for NSE?​
A) Indian Clearing Corporation Limited (ICCL)​
B) Multi Commodity Exchange Clearing Corporation (MCXCCL)​
C) National Securities Clearing Corporation Limited (NSCCL)​
D) Central Depository Services (India) Limited (CDSL)​
Answer: C​

53.​What is the primary responsibility of MIIs regarding the usage of Artificial

Intelligence (AI) and Machine Learning (ML) tools, as per SEBI provisions?​
A) To develop new AI/ML algorithms for trading​
B) To be solely responsible for the privacy, security, and integrity of investor
data and the output from such tools​
C) To provide AI/ML tools to all market participants free of charge​
D) To outsource all AI/ML development to third-party vendors​
Answer: B​

54.​A "banker to an issue" is defined as a scheduled bank carrying on which of

the following activities?​
A) Accepting application and application monies​
B) Accepting allotment or call monies​
C) Refunding application monies​
D) All of the above​
Answer: D​

55.​Bankers to an issue are governed by which SEBI regulation?​

A) SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018​
B) SEBI (Bankers to an Issue) Regulations, 1994​
C) SEBI (Portfolio Managers) Regulations, 2020​
D) SEBI (Credit Rating Agencies) Regulations, 1999​
Answer: B​
56.​What is the primary function of Credit Rating Agencies (CRAs)?​
A) To provide loans to large organizations​
B) To evaluate the creditworthiness of organizations and assign a credit risk
rating​
C) To manage mutual funds​
D) To underwrite IPOs​
Answer: B​

57.​Which of the following is NOT one of the top five credit rating agencies in
India?​
A) CRISIL Limited​
B) ICRA Limited​
C) Fitch Ratings (direct entity)​
D) CARE Ratings Limited​
Answer: C (India Ratings and Research (Ind-Ra) is a subsidiary of Fitch
Group, but Fitch Ratings itself is not listed as one of the top 5 direct CRAs in
India in the provided text).​

58.​Which SEBI regulation governs Credit Rating Agencies in India?​

A) SEBI (Credit Rating Agencies) Regulations, 1999​
B) SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018​
C) SEBI (Mutual Funds) Regulations, 1996​
D) SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011​
Answer: A​

59.​Which of the following services is typically provided by merchant banks?​

A) Retail banking for individual savings accounts​
B) Loan syndication for large corporate borrowers​
C) Issuing currency notes​
D) Regulating the banking sector​
Answer: B​

60.​What is a key difference between merchant banks and investment banks, as

mentioned in the text?​
A) Merchant banks only deal with large corporations, while investment banks
deal with small businesses.​
B) Merchant banks typically have a higher risk appetite and deal with smaller
businesses.​
C) Investment banks offer a broader range of services than merchant banks.​
D) Merchant banks are regulated by RBI, while investment banks are
regulated by SEBI.​
Answer: B​
61.​What is a mutual fund?​
A) A type of bank that provides loans to small businesses​
B) A financial vehicle that pools money from different investors and invests in
a diversified portfolio of securities​
C) A government scheme for rural development​
D) A regulatory body for the insurance sector​
Answer: B​

62.​Which regulatory body primarily oversees mutual funds in India?​

A) RBI​
B) IRDAI​
C) SEBI​
D) PFRDA​
Answer: C​

63.​According to SEBI's guidelines, which of the following is NOT part of the

three-tier setup for mutual funds?​
A) Sponsor​
B) Trust and Trustee​
C) Asset Management Company (AMC)​
D) Individual Investors​
Answer: D​

64.​What is the enhanced net worth requirement for portfolio managers, as per
SEBI (Portfolio Managers) Regulations 2020?​
A) ₹1 crore​
B) ₹2 crore​
C) ₹5 crore​
D) ₹10 crore​
Answer: C​

65.​What is the minimum investment required from clients for portfolio

management services (PMS) as per SEBI (Portfolio Managers) Regulations
2020?​
A) ₹10 lakh​
B) ₹25 lakh​
C) ₹50 lakh​
D) ₹1 crore​
Answer: C​

66.​As per SEBI (Portfolio Managers) Regulations 2020, what is now mandatory
for all portfolio managers (except those providing only advisory services)?​
A) To have a minimum of 10 employees​
B) To appoint a custodian to hold the securities under the client's
 name/ownership​
C) To invest only in unlisted securities​
D) To offer only discretionary PMS​
Answer: B​

67.​In the context of IPOs, what is the primary function of underwriters?​

A) To provide long-term loans to the public​
B) To manage the process of taking companies public and guarantee a
minimum sale of shares​
C) To regulate the stock market​
D) To provide insurance against export risks​
Answer: B​

68.​What does "hard underwriting" for IPOs, introduced by SEBI's 2023

amendments, imply?​
A) Underwriters are only responsible for marketing the IPO.​
B) Underwriters are explicitly obligated to purchase shares to fulfill any
shortfall in subscriptions.​
C) Underwriters are not allowed to participate in aftermarket stabilization.​
D) Underwriters only provide advisory services.​
Answer: B​

69.​Who is responsible for fulfilling the shortfall if an underwriter or nominated

underwriter fails to meet its commitments in an IPO?​
A) The issuing company​
B) SEBI​
C) The lead manager​
D) The stock exchange​
Answer: C​

70.​Which of the following is a key benefit of credit ratings?​

A) They guarantee investment returns.​
B) They facilitate informed investment decisions.​
C) They eliminate all investment risks.​
D) They replace the need for financial statements.​
Answer: B​

71.​What is the role of a "Principal Officer" in a portfolio management company,

as per SEBI regulations?​
A) To handle customer complaints​
B) To lead the investment activities at the PMS​
C) To manage the company's human resources​
D) To conduct internal audits​
 Answer: B​

72.​Which of the following is a key feature of SEBI's approach to regulating

algorithmic trading?​
A) Promoting it without any restrictions​
B) Enforcing measures to curb market manipulation and ensure level access​
C) Banning it entirely​
D) Providing direct financial incentives for its use​
Answer: B​

73.​What is the purpose of the SEBI (Substantial Acquisition of Shares and

Takeovers) Regulations, 2011 (SAST)?​
A) To regulate mutual funds​
B) To oversee control and ownership changes in listed companies​
C) To set guidelines for credit rating agencies​
D) To manage commodity derivatives trading​
Answer: B​

74.​What is the primary role of the Asset Management Company (AMC) in a

mutual fund structure?​
A) To initiate and promote the mutual fund​
B) To hold the assets for the benefit of the unitholders​
C) To manage the funds and provide necessary services to investors​
D) To manage investor transactions and record-keeping​
Answer: C​

76.​Which of the following is a key function of stock exchanges?​

A) Issuing currency​
B) Facilitating capital formation​
C) Regulating interest rates​
D) Providing direct loans to individuals​
Answer: B​

77.​What is the primary mechanism used by stock exchanges to ensure

transparent and efficient transactions?​
A) Open outcry system​
B) Manual ledger entries​
C) Electronic trading systems​
D) Broker-to-broker direct negotiations​
Answer: C​
78.​The benchmark indices like Sensex and Nifty serve as:​
A) Indicators of individual company performance only​
B) Measures of the overall economic condition of the nation​
C) Tools for direct government intervention in markets​
D) Mechanisms for setting commodity prices​
Answer: B​

79.​When was the Bombay Stock Exchange (BSE) established?​

A) 1875​
B) 1935​
C) 1992​
D) 1994​
Answer: A​

80.​What is the name of the fully electronic trading system introduced by BSE in
1995?​
A) NEAT+​
B) BOLT​
C) Sensex Plus​
D) Dalal Street Online​
Answer: B​

81.​What is the benchmark index of the Bombay Stock Exchange (BSE)?​

A) NIFTY 50​
B) SENSEX​
C) BSE 100​
D) India VIX​
Answer: B​

82.​When was the National Stock Exchange (NSE) established?​

A) 1875​
B) 1992​
C) 1994​
D) 2000​
Answer: B​

83.​Which committee's recommendations led to the establishment of NSE?​

A) Narasimhan Committee​
B) Pherwani Committee​
C) V. Balakrishna Eradi Committee​
D) CRAFICARD Committee​
Answer: B​
84.​What is the name of the fully electronic trading facility introduced by NSE in
1994?​
A) BOLT​
B) NEAT+​
C) NSE Direct​
D) Alpha Trade​
Answer: B​

85.​What is the flagship index of the National Stock Exchange (NSE)?​

A) SENSEX​
B) NIFTY 50​
C) BSE Midcap​
D) Nifty Bank​
Answer: B​

86.​In which year did NSE introduce derivative contracts (futures and options)?​
A) 1994​
B) 1996​
C) 2000​
D) 2008​
Answer: C​

87.​Which of the following is a specialized platform launched by NSE for SME and
startup listings?​
A) NSE Prime​
B) NSE EMERGE​
C) NSE Go​
D) NSE Pro​
Answer: B​

88.​As of 2023, NSE is the world's largest derivatives exchange by which metric?​
A) Number of listed companies​
B) Total market capitalization​
C) Number of contracts traded​
D) Daily turnover in cash equities​
Answer: C​

89.​What do equity stocks represent?​

A) A loan to a company​
B) A stake in a company's ownership​
C) A fixed-income investment​
D) A derivative contract​
Answer: B​
90.​What is a financial product whose value is derived from one or more
underlying assets?​
A) Equity stock​
B) Bond​
C) Derivative​
D) Mutual Fund​
Answer: C​

91.​Which type of derivative contract is generally unorganized and conducted

over-the-counter?​
A) Futures​
B) Options​
C) Forward contracts​
D) Swaps​
Answer: C​

92.​SEBI has expressed concern over the high participation of individual investors
in which segment, due to a majority incurring losses?​
A) Equity cash market​
B) Corporate debt market​
C) Equity derivatives segment (particularly index options)​
D) Mutual funds​
Answer: C​

93.​Which two regulatory bodies play pivotal roles in regulating the Indian debt
market?​
A) IRDAI and PFRDA​
B) RBI and SEBI​
C) CCI and NCLT​
D) EXIM Bank and SIDBI​
Answer: B​

94.​What is the primary purpose of the Corporate Debt Market Development Fund
(CDMDF)?​
A) To provide direct loans to corporations​
B) To act as a backstop facility during periods of market stress by purchasing
investment-grade corporate debt securities​
C) To regulate the issuance of new corporate bonds​
D) To manage foreign currency exchange rates​
Answer: B​
95.​Which regulatory body is the primary regulator for the commodity derivatives
market in India?​
A) RBI​
B) Ministry of Finance​
C) SEBI​
D) Forward Markets Commission (FMC)​
Answer: C​

96.​Which of the following is a mandatory requirement for executing transactions

in the commodity derivatives market, ensuring traceability and compliance?​
A) Unique Client Codes (UCC) and Permanent Account Numbers (PAN)​
B) Physical presence at the exchange​
C) Minimum transaction value of ₹1 crore​
D) Prior approval from the Ministry of Agriculture​
Answer: A​

97.​What is the primary role of a stockbroker in the securities market?​

A) To regulate the stock exchange​
B) To facilitate the buying and selling of securities on behalf of investors​
C) To issue new shares for companies​
D) To provide insurance to investors​
Answer: B​

98.​Which type of broker offers a comprehensive suite of services including

investment advice, portfolio management, and research reports, typically at
higher fees?​
A) Discount Brokers​
B) Specialized Brokers​
C) Full-Service Brokers​
D) Online Brokers​
Answer: C​

99.​Which of the following is an example of a discount broker mentioned in the

text?​
A) ICICI Direct​
B) HDFC Securities​
C) Zerodha​
D) Sharekhan​
Answer: C​
100.​ What is the purpose of Margin Trading Facility (MTF) offered by brokers?​
A) To provide free investment advice​
B) To allow investors to leverage funds for trading with margin-based loans​
C) To manage mutual fund investments only​
D) To assist in opening Demat accounts​
Answer: B​

101.​ What is the base value of the NIFTY 50 index?​

A) 100​
B) 500​
C) 1,000​
D) 5,000​
Answer: C​

102.​ Which of the following is a key feature of NSE's operations?​

A) Trade execution in less than 200 microseconds​
B) Manual order matching​
C) Limited connectivity to major cities only​
D) Weekly price updates​
Answer: A​

103.​ What is the significance of the BSE's transition to BOLT in 1995?​

A) It marked the end of its operations.​
B) It transitioned from an open outcry system to a fully electronic trading
system.​
C) It led to the establishment of NSE.​
D) It allowed only institutional investors to trade.​
Answer: B​

104.​ What is the primary function of a Clearing Corporation?​

A) To provide investment advice​
B) To handle the clearing and settlement of trades​
C) To list new companies​
D) To manage foreign exchange reserves​
Answer: B​

105.​ Which of the following is a benefit of Online Bond Platforms Providers

(OBPPs)?​
A) They increase the minimum investment required for bonds.​
B) They limit retail investor participation in the debt market.​
C) They offer a transparent, accessible, and convenient way to invest in
bonds.​
D) They are unregulated platforms.​
 Answer: C​

106.​ What is the main objective of SEBI's regulations for the commodity
derivatives market?​
A) To promote excessive speculation​
B) To safeguard participants from manipulation and insider trading​
C) To fix commodity prices​
D) To encourage physical delivery of all contracts​
Answer: B​

107.​ What is the role of a Registrar and Transfer Agent (RTA) in a mutual fund?​
A) To manage the investment portfolio​
B) To hold the fund's assets in safekeeping​
C) To manage investor transactions, maintain records, and handle
communication with unitholders​
D) To initiate and promote the mutual fund​
Answer: C​

111.​ When was the Competition Commission of India (CCI) established?​

A) October 14, 2003​
B) May 22, 2012​
C) June 1, 2016​
D) April 2, 1990​
Answer: A​

112.​ The CCI is responsible for enforcing which Act?​

A) Companies Act, 2013​
B) Competition Act, 2002​
C) SEBI Act, 1992​
D) RBI Act, 1934​
Answer: B​

113.​ Which of the following is an objective of the Competition Act, enforced by

CCI?​
A) To promote monopolies in key sectors​
B) To eliminate practices that have an adverse effect on competition​
C) To restrict freedom of trade for certain market participants​
D) To prioritize producer interests over consumer welfare​
Answer: B​

114.​ What is one of the specific functions of the CCI regarding mergers and
acquisitions?​
A) To prohibit all combinations​
B) To approve combinations to ensure they do not gain undue market
 dominance​
C) To provide financial assistance for mergers​
D) To regulate the stock market aspects of combinations​
Answer: B​

115.​ The CCI undertakes "competition advocacy" to achieve which goal?​

A) To increase government control over markets​
B) To create public awareness and impart training on competition issues​
C) To reduce the number of market participants​
D) To set prices for goods and services​
Answer: B​

116.​ The overarching goal of the CCI is to "make the markets work for the
benefit and welfare of consumers" and to provide a "level playing field" for
whom?​
A) Regulators​
B) Producers​
C) Foreign investors​
D) Government agencies​
Answer: B​

117.​ When was the National Company Law Tribunal (NCLT) established?​
A) October 14, 2003​
B) May 22, 2012​
C) June 1, 2016​
D) April 2, 1990​
Answer: C​

118.​ The NCLT was established under which Act?​

A) Insolvency and Bankruptcy Code, 2016​
B) Companies Act, 2013​
C) SEBI Act, 1992​
D) Competition Act, 2002​
Answer: B​

119.​ The NCLT serves as the adjudicating authority for the insolvency
resolution process of companies and limited liability partnerships under which
code?​
A) Companies Act, 2013​
B) Foreign Exchange Management Act, 1999​
C) Insolvency and Bankruptcy Code (IBC), 2016​
D) Banking Regulation Act, 1949​
Answer: C​
120.​ Decisions made by the NCLT can be appealed to which body?​
A) Supreme Court of India directly​
B) High Court​
C) National Company Law Appellate Tribunal (NCLAT)​
D) Ministry of Corporate Affairs​
Answer: C​

121.​ The Department for Promotion of Industry and Internal Trade (DPIIT)
operates under which Ministry?​
A) Ministry of Finance​
B) Ministry of Corporate Affairs​
C) Ministry of Commerce and Industry​
D) Ministry of External Affairs​
Answer: C​

122.​ What is DPIIT primarily responsible for regarding FDI in India?​

A) Providing direct financial assistance to foreign companies​
B) Formulating the extant FDI Policy and issuing Press Notes​
C) Regulating foreign exchange markets​
D) Approving all foreign investment proposals without review​
Answer: B​

123.​ Which online portal, managed by DPIIT, serves as the new single point
interface for investors to facilitate Foreign Direct Investment?​
A) MakeInIndia.gov.in​
B) InvestIndia.gov.in​
C) Foreign Investment Facilitation Portal (FIFP)​
D) StartupIndia.gov.in​
Answer: C​

124.​ What is the purpose of Standard Operating Procedures (SOPs) developed

by DPIIT in consultation with Administrative Ministries?​
A) To increase bureaucratic hurdles for FDI applications​
B) To streamline the processing of FDI applications​
C) To restrict the types of FDI allowed​
D) To collect higher application fees​
Answer: B​

125.​ Which of the following is an economic efficiency promoted by the CCI?​

A) Allocative efficiency​
 B) Productive efficiency​
C) Dynamic efficiency​
D) All of the above​
Answer: D​

126.​ The Insolvency and Bankruptcy Code (IBC) enforced through the NCLT,
fundamentally shifts the focus from:​
A) Revival to liquidation of distressed companies​
B) Liquidation to potential revival of distressed companies​
C) Voluntary winding up to compulsory winding up​
D) Debt recovery to debt forgiveness​
Answer: B​

127.​ What is a key benefit of a predictable and efficient framework for resolving
corporate distress, as provided by NCLT under IBC?​
A) It discourages foreign investment.​
B) It increases non-performing assets (NPAs).​
C) It significantly improves the ease of doing business in India.​
D) It prolongs the resolution process.​
Answer: C​

128.​ Which of the following is NOT a function of DPIIT?​

A) Overseeing applications filed on the Foreign Investment Facilitation Portal​
B) Developing Standard Operating Procedures for FDI applications​
C) Directly regulating the stock market​
D) Formulating FDI Policy​
Answer: C​

129.​ The CCI's efforts contribute to economic efficiency by promoting:​

A) Monopoly power​
B) Cartelization​
C) Innovation and specialization​
D) Price fixing​
Answer: C​

Mixed Questions
Which of the following is a key feature of India's regulatory landscape?​
A) Centralized regulation by a single body​
B) Sector-specific regulators operating autonomously​
C) Absence of financial penalties for non-compliance​
D) Static regulatory environment​
Answer: B​

131.​ What is the primary role of the Reserve Bank of India (RBI) in the Indian
financial system?​
A) To act as a commercial bank for the public​
B) To manage the country's monetary policy and ensure financial stability​
C) To regulate the insurance sector​
D) To promote small-scale industries​
Answer: B​

132.​ Which of the following institutions is responsible for regulating the

securities market in India?​
A) RBI​
B) IRDAI​
C) SEBI​
D) NABARD​
Answer: C​

133.​ What is the main purpose of the mandatory provisions regarding SLR and
CRR for banks?​
A) To increase bank profitability​
B) To ensure the solvency of banks and control liquidity in the banking system​
C) To encourage banks to lend more to specific sectors​
D) To reduce the RBI's regulatory burden​
Answer: B​

134.​ Which institution is specifically dedicated to the promotion, financing, and

development of the Micro, Small and Medium Enterprise (MSME) sector?​
A) EXIM Bank​
B) NABARD​
C) SIDBI​
D) ECGC​
Answer: C​

135.​ Which institution provides export credit insurance support to Indian

exporters and banks?​
A) EXIM Bank​
B) SIDBI​
C) ECGC​
D) NABARD​
Answer: C​
136.​ Which of the following is a quasi-judicial body in India that adjudicates
issues relating to Indian companies, including insolvency resolution?​
A) Competition Commission of India (CCI)​
B) National Company Law Tribunal (NCLT)​
C) Securities and Exchange Board of India (SEBI)​
D) Reserve Bank of India (RBI)​
Answer: B​

137.​ What is the primary role of the Department for Promotion of Industry and
Internal Trade (DPIIT) concerning FDI?​
A) To regulate foreign exchange rates​
B) To formulate and facilitate FDI policy​
C) To provide direct loans to foreign investors​
D) To manage India's foreign trade agreements​
Answer: B​

138.​ Which of the following is a key function of stock exchanges?​

A) Providing insurance services​
B) Facilitating capital formation for businesses​
C) Regulating the money supply​
D) Managing government debt​
Answer: B​

139.​ Which of the following is a type of financial instrument whose value is

derived from an underlying asset?​
A) Equity stock​
B) Bond​
C) Derivative​
D) Mutual fund unit​
Answer: C​

140.​ What is the main difference between scheduled and non-scheduled

commercial banks?​
A) Scheduled banks are government-owned, while non-scheduled banks are
private.​
B) Scheduled banks are included in the Second Schedule of the RBI Act,
1934, and can borrow from RBI.​
C) Non-scheduled banks operate nationwide, while scheduled banks are
regional.​
D) Scheduled banks do not have to maintain reserves, unlike non-scheduled
banks.​
Answer: B​
141.​ Which institution launched the Self Help Group-Bank Linkage Programme
(SHG-BLP) in 1992?​
A) SIDBI​
B) NABARD​
C) RBI​
D) EXIM Bank​
Answer: B​

142.​ What is the primary role of the Pension Fund Regulatory and Development
Authority (PFRDA)?​
A) To regulate the banking sector​
B) To promote old-age income security by regulating pension funds​
C) To oversee the insurance industry​
D) To manage government pension disbursements directly​
Answer: B​

143.​ Which of the following is a type of broker that primarily focuses on

executing trades at lower commission rates?​
A) Full-Service Broker​
B) Discount Broker​
C) Specialized Broker​
D) Investment Advisor​
Answer: B​

144.​ What is the significance of the "Lender of Last Resort" function of the RBI?​
A) It provides long-term development finance to industries.​
B) It ensures that banks can always borrow from the government.​
C) It provides emergency liquidity to Scheduled Commercial Banks during
crises.​
D) It regulates the interest rates on all loans.​
Answer: C​

145.​ Which of the following is a key objective of the Competition Commission of

India (CCI)?​
A) To establish monopolies in strategic sectors​
B) To protect the interests of consumers​
C) To restrict foreign investment​
D) To control inflation directly​
Answer: B​

146.​ What is the primary function of the National Company Law Tribunal
(NCLT) under the Insolvency and Bankruptcy Code (IBC)?​
A) To provide loans to distressed companies​
B) To adjudicate the insolvency resolution process of companies​
 C) To regulate the stock market​
D) To formulate corporate tax policies​
Answer: B​

147.​ Which of the following is a financial product offered by EXIM Bank?​

A) Personal loans​
B) Working Capital Loan Guarantees for exporters​
C) Home loans​
D) Credit cards​
Answer: B​

148.​ What is the main purpose of the "Ubharte Sitaare Programme" supported
by EXIM Bank?​
A) To identify and nurture future champions among Indian companies with
strong export potential​
B) To provide financial assistance to startups in the IT sector​
C) To promote rural tourism​
D) To fund educational initiatives in remote areas​
Answer: A​

149.​ Which of the following is a key feature of the Indian regulatory environment
for business?​
A) It is static and rarely changes.​
B) It is continuously adapting to emerging challenges like technological
advancements.​
C) It primarily relies on self-regulation by industries.​
D) It has no provisions for penalties for non-compliance.​
Answer: B​
The Indian regulatory environment for business is designed to promote:​
A) Monopolies​
B) Competition​
C) Bureaucracy​
D) High tariffs​
Answer: B 1​

1.​ The RBI is tasked with managing the:​

A) Fiscal policy​
B) Monetary policy​
C) Trade policy​
D) Industrial policy​
Answer: B 1​

2.​ Scheduled banks are included in which schedule of the Reserve Bank of India
Act, 1934?​
 A) First Schedule​
B) Second Schedule​
C) Third Schedule​
D) Fourth Schedule​
Answer: B 2​

3.​ Which type of banks are generally smaller and serve localized or niche
markets?​
A) Public Sector Banks​
B) Private Sector Banks​
C) Scheduled Banks​
D) Non-scheduled Banks​
Answer: D 2​

4.​ Foreign Direct Investment (FDI) in private sector banks is permitted up to 49%
through which route?​
A) Government approval route​
B) Automatic route​
C) FIPB route​
D) RBI approval route​
Answer: B 2​

5.​ A Non-Banking Financial Company (NBFC) is registered under which Act?​

A) RBI Act, 1934​
B) Banking Regulation Act, 1949​
C) Companies Act, 2013​
D) SEBI Act, 1992​
Answer: C 2​

6.​ NABARD stands for:​

A) National Bank for Agricultural Research and Development​
B) National Bank for Agriculture and Rural Development​
C) National Association of Banks and Rural Development​
D) New Agency for Banking and Rural Development​
Answer: B 4​

7.​ NABARD's vision is to be the "Development Bank of the Nation for Fostering
Rural Prosperity."​
A) True​
B) False​
Answer: A 5​

8.​ EXIM Bank is a specialized financial institution wholly owned by the:​

A) Reserve Bank of India​
 B) Ministry of Finance​
C) Government of India​
D) State Bank of India​
Answer: C 6​

9.​ ECGC Limited is headquartered in which Indian city?​

A) New Delhi​
B) Kolkata​
C) Chennai​
D) Mumbai​
Answer: D 7​

10.​SIDBI was established under an Act of the Indian Parliament.​

A) True​
B) False​
Answer: A 8​

11.​The PM Vishwakarma Scheme provides a toolkit incentive of how much to

beneficiaries?​
A) ₹5,000​
B) ₹10,000​
C) ₹15,000​
D) ₹20,000​
Answer: C 9​

12.​Microfinance Institutions (MFIs) provide:​

A) Large corporate loans​
B) Small loans to individuals and businesses lacking traditional banking
access​
C) Export finance​
D) Housing loans only​
Answer: B 11​

13.​Regional Rural Banks (RRBs) were created to serve which areas primarily?​
A) Urban areas​
B) Semi-urban areas​
C) Rural areas​
D) Metropolitan areas​
Answer: C 13​

14.​What is the percentage share of the Government of India in the ownership of

Regional Rural Banks (RRBs)?​
A) 15%​
B) 35%​
 C) 50%​
D) 75%​
Answer: C 13​

15.​IRDAI is the regulatory body for which sector in India?​

A) Banking​
B) Securities​
C) Insurance​
D) Pensions​
Answer: C 14​

16.​PFRDA is responsible for regulating the National Pension System (NPS)

ecosystem.​
A) True​
B) False​
Answer: A 15​

17.​The PFRDA's primary objective is to promote:​

A) Short-term savings​
B) Old-age income security​
C) Child education funds​
D) Health insurance​
Answer: B 15​

18.​What is the main difference between CRR and SLR regarding where the
reserves are maintained?​
A) CRR is with RBI, SLR is with banks themselves.​
B) CRR is with banks themselves, SLR is with RBI.​
C) Both are with RBI.​
D) Both are with banks themselves.​
Answer: A 18​

19.​The RBI manages foreign exchange under which Act?​

A) FEMA, 1999​
B) SEBI Act, 1992​
C) Companies Act, 2013​
D) Banking Regulation Act, 1949​
Answer: A 19​

20.​Which of the following is a promotional function of the RBI?​

A) Issuing currency notes​
B) Regulating banks​
C) Promoting the Indian Financial System​
D) Acting as banker to the government​
 Answer: C 21​

21.​What is the authorized capital of ECGC Limited?​

A) ₹3,190 crores​
B) ₹5,000 crores​
C) ₹7,500 crores​
D) ₹10,000 crores​
Answer: B 7​

26.​The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

are known by which acronym?​
A) LODR​
B) PIT​
C) ICDR​
D) SAST​
Answer: C 23​

27.​Market Infrastructure Institutions (MIIs) include Stock Exchanges, Clearing

Corporations, and:​
A) Commercial Banks​
B) Insurance Companies​
C) Depositories​
D) Mutual Funds​
Answer: C 24​

28.​Which committee was set up by SEBI to define Market Infrastructure

Institutions (MIIs)?​
A) Narasimhan Committee​
B) Pherwani Committee​
C) Bimal Jalan Committee​
D) V. Balakrishna Eradi Committee​
Answer: C 24​

29.​A "banker to an issue" is a:​

A) Non-scheduled bank​
B) Scheduled bank​
C) Cooperative bank​
 D) Foreign bank​
Answer: B 25​

30.​Credit Rating Agencies (CRAs) assess the creditworthiness of:​

A) Individuals only​
B) Small businesses only​
C) Large organizations (private and public)​
D) Government entities only​
Answer: C 26​

31.​Merchant banking provides financial services primarily to:​

A) Retail customers​
B) Medium to small-sized businesses and large corporations​
C) Government departments​
D) Non-profit organizations​
Answer: B 27​

32.​A mutual fund pools money from different investors and invests in a diversified
portfolio of securities.​
A) True​
B) False​
Answer: A 28​

33.​In a mutual fund structure, who acts as the guardian of the mutual fund,
holding assets for the benefit of unitholders?​
A) Sponsor​
B) Asset Management Company (AMC)​
C) Trust and Trustee​
D) Custodian​
Answer: C 11​

34.​Only a corporate body can be granted a portfolio manager certificate by SEBI.​

A) True​
B) False​
Answer: A 29​

35.​The minimum investment required from clients for portfolio management

services (PMS) was increased from ₹25 lakh to:​
A) ₹30 lakh​
B) ₹40 lakh​
 C) ₹50 lakh​
D) ₹1 crore​
Answer: C 30​

36.​Underwriters typically work for companies that offer:​

A) Debt​
B) Insurance​
C) Shares​
D) All of the above​
Answer: D 31​

37.​What is the primary function of underwriters in an IPO?​

A) To provide loans to investors​
B) To manage the process of taking companies public​
C) To regulate the secondary market​
D) To provide financial advice to retail investors​
Answer: B 32​

41.​Stock exchanges are regulated marketplaces where securities are bought and
sold.​
A) True​
B) False​
Answer: A 33​

42.​The Bombay Stock Exchange (BSE) is located on which famous street in

Mumbai?​
A) Wall Street​
B) Dalal Street​
C) Fleet Street​
D) Park Street​
Answer: B 33​

43.​What do equity stocks represent in a company?​

A) A loan​
B) A fixed deposit​
C) A stake in ownership​
D) A bond​
Answer: C 28​
44.​Derivatives are financial products whose value is derived from one or more:​
A) Underlying assets​
B) Fixed interest rates​
C) Government policies​
D) Broker commissions​
Answer: A 28​

45.​What is the minimum face value for privately placed corporate bonds, reduced
by SEBI to boost retail participation?​
A) ₹1,000​
B) ₹5,000​
C) ₹10,000​
D) ₹50,000​
Answer: C 36​

46.​The Corporate Debt Market Development Fund (CDMDF) was established by

RBI, Ministry of Finance, and:​
A) NABARD​
B) SIDBI​
C) SEBI​
D) EXIM Bank​
Answer: C 37​

47.​Which regulatory body oversees the commodity derivatives market in India?​

A) RBI​
B) Ministry of Commerce​
C) SEBI​
D) Forward Markets Commission (FMC)​
Answer: C 38​

48.​Which type of broker offers a comprehensive range of services including

investment advice and portfolio management?​
A) Discount Brokers​
B) Online Brokers​
C) Full-Service Brokers​
D) Robo-Advisors​
Answer: C​
1.​ Which Act established the Reserve Bank of India?​
A) Banking Regulation Act, 1949​
B) RBI Act, 1934​
C) Companies Act, 2013​
D) SEBI Act, 1992​
Answer: B 1​

2.​ What is the main objective of the Indian regulatory environment for business?​
A) To restrict trade​
B) To encourage competition​
C) To increase government control​
D) To limit consumer rights​
Answer: B 1​

3.​ What is the full form of NBFC?​

A) National Banking and Financial Corporation​
B) Non-Banking Financial Company​
C) New Business Finance Corporation​
D) National Bank for Foreign Currency​
Answer: B 6​

4.​ In which year was ECGC Limited established?​

A) 1947​
B) 1957​
C) 1967​
D) 1977​
Answer: B 10

5.​ What does MSME stand for?​

A) Medium, Small and Micro Enterprises​
B) Micro, Small and Medium Enterprises​
C) Manufacturing, Services and Micro Enterprises​
D) Modern Small and Medium Enterprises​
Answer: B 11​
6.​ What is the primary role of Microfinance Institutions (MFIs)?​
A) Providing large corporate loans​
B) Providing small loans to underserved individuals and businesses​
C) Regulating the banking sector​
D) Managing foreign exchange​
Answer: B 12​

7.​ Regional Rural Banks (RRBs) are owned by the Government of India,
Sponsored Bank, and:​
A) Private investors​
B) State Governments​
C) RBI​
D) Foreign banks​
Answer: B 14​

8.​ What does NPS stand for?​

A) National Payment System​
B) New Pension Scheme​
C) National Pension System​
D) Non-Profit System​
Answer: C 16​

9.​ What does APY stand for?​

A) Atal Pension Yojana​
B) Advanced Pension Yojana​
C) All Pension Yojana​
D) Active Pension Yojana​
Answer: A 17​

10.​What is the primary objective of the RBI's monetary policy?​

A) To maximize bank profits​
B) To maintain price stability​
C) To increase government spending​
D) To reduce foreign trade​
Answer: B 2​

11.​Which type of NBFCs are identified by RBI as warranting enhanced regulatory

requirements based on parameters and scoring methodology?​
A) NBFC-Base Layer​
B) NBFC-Middle Layer​
C) NBFC-Upper Layer​
D) NBFC-Top Layer​
Answer: C 6​
 ​

26.​What does ICDR stand for in SEBI regulations?​

A) Indian Capital Disclosure Rules​
B) Issue of Capital and Disclosure Requirements​
C) Investment and Capital Development Regulations​
D) International Capital Disclosure Rules​
Answer: B 26​

27.​What does MII stand for in capital markets?​

A) Market Investment Institutions​
B) Major Industrial Investors​
C) Market Infrastructure Institutions​
D) Monetary Information Indicators​
Answer: C 27​

28.​Which committee defined "Market Infrastructure Institutions" for SEBI?​

A) Narasimhan Committee​
B) Pherwani Committee​
C) Bimal Jalan Committee​
D) V. Balakrishna Eradi Committee​
Answer: C 27​

29.​What does CRA stand for?​

A) Credit Rating Agency​
B) Capital Regulation Authority​
C) Corporate Risk Assessment​
D) Central Regulatory Agency​
Answer: A 30​

30.​What is the full form of AMC in mutual funds?​

A) Asset Management Company​
B) Association of Mutual Companies​
 C) Automated Management Company​
D) Asset Marketing Company​
Answer: A 25​

31.​What is the full form of RTA in mutual funds?​

A) Regulatory and Transfer Agent​
B) Registrar and Transfer Agent​
C) Risk and Trading Agent​
D) Research and Technical Analyst​
Answer: B 25​

32.​What does PMS stand for in investment services?​

A) Public Market Services​
B) Portfolio Management Services​
C) Private Money Solutions​
D) Personal Market Strategies​
Answer: B 33​

33.​What is the minimum net worth requirement for a SEBI-registered portfolio

manager?​
A) ₹1 crore​
B) ₹2 crore​
C) ₹5 crore​
D) ₹10 crore​
Answer: C 33​

34.​What is the primary role of an underwriter in an IPO?​

A) To buy shares for personal investment​
B) To manage the process of taking companies public and guarantee sales​
C) To provide loans to the public​
D) To regulate the stock market​
Answer: B 35​

35.​What does DRHP stand for in IPOs?​

A) Draft Red Herring Prospectus​
B) Detailed Regulatory and Historical Prospectus​
C) Direct Revenue and High Profit​
D) Debt Raising and Hedging Plan​
Answer: A 35​