ECONOMY MCQS SET 99

ECONOMY MCQS SET 99

981) Consider the following statements
1. Forward Markets Commission (FMC) regulates commodity trades in India.
2. Forward Markets Commission (FMC), a financial regulatory agency is overseen by the Ministry of Finance in India.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
982) Which one of the following acts had established the Small Industries Development Bank of India (SIDBI)?
A) Act of Parliament, 1956
B) Act of Parliament, 1970
C) Act of Parliament, 1990
D) Act of Parliament, 1996
Correct Answer: Act of Parliament, 1990
   
983) Which among the following is not an approved stock exchange in India?
A) UP Stock Exchange, Kanpur
B) Vadodara Stock Exchange, Vadodara
C) Assam Stock Exchange, Assam
D) Bhubaneshwar Stock Exchange, Bhubaneshwar
Correct Answer: Assam Stock Exchange, Assam
   
984) Consider the following statements
1. ISE is a national level stock exchange.
2. It aims to address the needs of small companies and retail investors.
Which of the above statements is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
985) Consider the following functions of the Foreign Exchange Management Act (FEMA)
1. FEMA restricts activities such as payments made to any person outside India or receipts from them.
2. FEMA imposes restriction on people living in India who carry out transactions in foreign exchange, foreign security or who own or hold immovable property abroad.
3. FEMA regulates the exporters to furnish their export details to RBI.
Which of the statements given above is/are correct?
A) 1, 2 and 3
B) 1 and 3
C) 2 and 3
D) Only 1
Correct Answer: 1, 2 and 3

986) Which body in India does the regulation of insurance sector?
A) DFHI
B) CII
C) SEBI
D) IRDA
Correct Answer: IRDA
   
987) Consider the following statements
1. Global depository receipt is a certificate issued by a depository bank which purchases shares of foreign companies and deposits it on the account.
2. Global depository receipts are used to invest in companies from developing or emerging markets.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
988) Which one of the following banks is the new set of owner of the Unit Trust of India-2 (UTI-2) after the repealed of original UTI Act?
A) State Bank of India
B) Bank of Baroda
C) Punjab National Bank
D) All of the above
Correct Answer: All of the above
   
989) Which of the following is not the recommendation of the Arvind Mayaram Committee on rationalising the FDI/FPI definition (June, 2014)?
A) Foreign investment of 10% or more in a listed company will be treated as Foreign Direct Investment (FDI)
B) In a particular company, an investor can hold the investments either under the Foreign Portfolio investment (FPI) route or under the FDI route, but not both.
C) Any investment by way of equity shares, compulsorily convertible preference shares/debentures which is less than 10% of the post issue paid up equity capital of a company shall be treated as FPI.
D) On NRI investors, the committee recommended treating non repartriable investment as FDI.
Correct Answer: Any investment by way of equity shares, compulsorily convertible preference shares/debentures which is less than 10% of the post issue paid up equity capital of a company shall be treated as FPI.
   
990) 'Liquidity trap' is a situation in which
A) people want to hold only cash because prices are falling everyday.
B) people want to hold only cash because there is too much of liquidity in the economy.
C) the rate of interest is so low that no one wants to hold interest bearing assets and people want to hold cash.
D) there is an excess of foreign exchange reserves in the economy leading to excess of money supply.
Correct Answer: people want to hold only cash because there is too much of liquidity in the economy.