Securities Market and Financial Awareness MCQs for SEBI Grade A / RBI Grade B 2020 Exam Part - 6

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                           SEBI Grade A/ RBI Grade B Securities Market and Financial Awareness MCQs. If you want to crack SEBI Grade A / RBI Grade B examination, you need to read the relevant material. READ and REVISE it Multiple times because if you can't replicate whatever you have studied then it is of no use. For All MCQs Archive CLICK HERE

Securities Market and General Awareness for SEBI Grade A/ RBI Grade B

Q1. Calling feature in bonds is most prevalent when_______?

A. When it favours the investors

B. When interest rates are expected to fall

C. When interest rates are expected to rise.

D. When interest rates remain stable

Explanation: (B) A callable bond gives the borrower (issuer) the right to pay back obligation (borrowed amount) to the lender (bondholder) before the stated maturity date.

• There is a call option embedded in callable bonds. So when the interest rates fall the issuer of bond has the option to call back bonds (to pay back the borrowed amount to the lender or bondholders).

• For Example-- Exam Together Limited, issues a callable bond with a maturity period of 10 years at a 6% premium. However, 7 years down the line, the interest rates in the economy falls to 5%. So, the issuer (Exam Together) can exercise call option and will redeem the bonds at a premium of 5%. This helps the issuer to save major chunk of money that goes to the bondholders as interest payments.

• The callable bonds are known to deliver a higher interest or coupon rate to the investors, the companies issuing the same can look forward to benefitting from the same.

Q2. What does 'I' stands for in CHIPS? 

A. Interest

B. Interbank

C. Immediate

D. Indian

Explanation: (B) CHIPS Stands for The Clearing House Interbank Payments System. It is the primary clearing house in the U.S. for large banking transactions.

Founded : 1970

Q3. When interest rates fall in the economy 

A. Bond prices rise

B. Bond prices remain same

C. Bond Prices fall

D. There is no correlation between interest rates and bond prices.

Explanation: (A) The bond price depends on the interest rates prevalent in the market on which it can either sold at premium or discounted rate. There is a inverse relationship between interest rates and bond prices.

• When interest rates fall, bond prices rise.

• When interest rates rise, bond prices fall.

• When interest rates rise, the market value of bonds falls. If you have a bond with a coupon of 6% and the interest rates rise from 6% to 7%, Then the coupon rate on the bond will now seem less attractive to investors so they'll be willing to pay less for it.

PM SVANidhi Scheme Explained for UPSC

Q4. As per SCRA 1956, the term securities include which of the following?

A. Bonds

B. Derivatives.

C. Shares, scrips or bonds

D. All of the above.

Explanation: (D) The term "securities" has been defined in section 2(h) of Securities Contracts (Regulation) Act, 1956

•  Shares, scrips, stocks, bonds, debentures,
•  Derivatives,
•  Government securities,
•  Rights or interest in securities etc.

Q5. What is the Statutory Liquidity Ratio at present? (September 2020)

A. 19%

B. 18%

C. 20.5%

D. 18.5%

  

Explanation: (B)   Statutory Liquidity Ratio (SLR): The share of NDTL or Net Demand and Time Liabilities that a bank is required to maintain in safe and liquid assets, such as, unencumbered government securities, cash and gold. Changes in SLR often influence the availability of resources in the banking system for lending to the private sector.

• The SLR percentage is of the percentage of the total bank deposits available as far as the particular bank is concerned and it keeps changing as per the RBI monetary policy.

• SLR is used to increase or decrease the flow of bank credit.

• The money invested under the SLR window earn some interests for banks. But they can’t access this fund for lending purposes.

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                  Top 50 Idioms and Phrases asked in various examinations

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Today's Current Affairs For SSC CGL, BANKING, RRB NTPC, RBI, SEBI, Exam 30th September 2020

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                           Daily current affairs update for your upcoming examination such as SSC CGL, RRB NTPC, SEBI, RBI, SBI etc. For all Current Affairs Archive CLICK HERE

National Current Affairs 

• Harijan Sevak Sangh celebrates its foundation day.

• South Eastern Railway launched 'Operation My Saheli'.

• The Shanti Swarup Bhatnagar Prize 2020 was announced by the Union science and technology minister Dr Harsh Vardhan.

• Union Minister for Chemicals & Fertilizers Shri. D.V. Sadananda Gowda, launched PoS 3.1 Software, SMS Services and facility of Home delivery of Fertilizers ( RBK) for farmers in Andhra Pradesh.

• Union Housing and Urban Affairs Ministry said, Rs 15,000 Cr Loan Sanctioned For Projects.

• Online Release of Picture Postcard on Sawantwadi Toy by India Post.

• Andhra Pradesh Chief Minister YS Jagan Mohan Reddy launched the YSR Jala Kala Scheme.

• Nagaland Government launched livelihood generation portal for returned migrant workers.

• Gujarat government signed Memorandum of Understanding (MoU) with Denmark in water sector.

• BrahMos Missile Featuring Indigenous Booster Successfully Flight Tested.

• Union Minister Dr Jitendra Singh inaugurates 23 Roads and Bridges projects in Kathua, Doda, Udhampur and Reasi Districts.

• POWERGRID signs MoU with Ministry of Power, Govt. of India detailing targets for year 2020-21.

• Union Home Minister Shri Amit Shah Distributes Electric Potter Wheels to Kumhar community in Gandhinagar.

INTERNATIONAL 

• Amnesty International suspends India operations after accounts are frozen by ED.

BANKING & ECONOMY 

• The National Bank for Agriculture and Rural Development (NABARD) launched a Sanitation Literacy Campaign in Karnataka.

• Flipkart partners with Bajaj Allianz to offer cyber fraud insurance due to rise in the cases to cyber attacks.

• IDBI Bank becomes first bank to enable document embedding feature on Structured Financial Messaging System.

• SIDBI partnered with CRIF to launch " Industry Spotlight".

AWARDS 

• Sonu Sood awarded SDG Special Humanitarian Action Award by United Nations Development Programme UNDP.

OBITUARIES

• Singer Helen Reddy passes away.

• Noted literary critic G. S. Amur passes away.

• Ruler of Kuwait, Sheikh Sabah al-Sabah passes away.

APPOINTMENT

• Shekhar Kapur appointed president of (Film and Television Institute of India) FTII Society & chairman of FTII Governing Council.

• RBI appointed D K Kashyap as director on board of Dhanlaxmi Bank.

• Vedantu appointed Aamir Khan as its brand ambassador.

IMPORTANT DAYS

• September 27: World Rivers Day.

• September 30: International Translation Day. Theme- “Finding the words for a world in crisis”.

BOOKS

• Dr Krishna Saksena launched 'A bouquer of clowers'.

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Securities Market and General Awareness MCQs for SEBI Grade A 2020 Exam Part - 5

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                          MCQs on Securities Market and General Awareness for the upcoming SEBI Grade A/ RBI Grade B examination. It is very important to study relevant and well targeted study material to crack any exam. So Exam Together has provided you with a series of 5 MCQs on Securities Market and General Awareness Section with detailed explanation. For all MCQs Archive CLICK HERE

Securities Market and General Awareness for SEBI Grade A/ RBI Grade B

Q1. What is the maximum limit for investment for an individual in Sovereign Gold Bond?

A. 10 Kg

B. 5 Kg

C. 4 Kg

D. 1 Kg

Explanation: (C) Sovereign Gold Bond Scheme was launched by Government in November 2015.

  

• The minimum investment for an individual in SGB is one gram of gold and in multiples thereof, with a maximum limit of of 4 kg for individuals.

• SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. 

• Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

• SGB comes with a assured fixed rate interest per annum on the initial investment, which is quite lucrative.

• The tenor of the bond will be a period of 8 years and bondholders can exit the bond at the end of 5th , 6th or 7th year.

Q2. What does 'D' stands for in FIMMDA?

A. Debt

B. Debenture

C. Dissolution

D. Derivatives

Explanation: (D) D stands for Derivatives.

• The Fixed Income Money Market and Derivatives Association of India (FIMMDA). 
• FIMMDA is a voluntary market body for the bond, money and derivatives markets.

• It is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies incorporated as a company under section 25 of the Companies Act, 1956.

• FIMMDA founded on 4th May, 1998.

• FIMMDA main objective is to regulate the dealings in Fixed Income instruments, money market instruments and derivatives products, and to promote ethical code of conduct.

Q3. If a company issues fresh shares, and such shares are offered only to existing shareholders, then such issue is a ________?

A. Initial Public Offering.

B. Right Issue.

C. Private Placement.

D. Offer for Sale.

Explanation: (B) A rights issue is an invitation to existing shareholders to buy additional new shares in the company in proportion of their existing shareholding. This type of issue gives existing shareholders securities called rights.

• Concept of Right Issue of Shares comes under Companies Act, 2013. Section 62(1)(a) of Companies Act, 2013,  deals with the Right Issue. 

• The basic idea is to raise fresh capital and to ensure equitable allocation of shares.

• The existing shareholders are not obliged to subscribe to the right issue, they can also choose to ignore the issue.

• Recently The Securities and Exchange Board of India (SEBI) extended the regulatory approval validity for IPO, Rights Issue up to March 31, 2021.

Q4. 'Soch Kar, Samajh Kar, Invest Kar, is associated with which of the following stock exchange.

A. BSE

B. NSE

C. INX

D. MCX

Explanation: (B) "Soch kar, Samajh kar, Invest kar" is a Trademark of National Stock Exchange Of India Limited.

• This line basically talks about the way of investing to the general public. Think and Understand the investment instrument before investing.

• It is a NSE Investor Awareness Campaign to enable potential investor to make wise investment decisions.

Q5. Corporate Governance takes into account which aspect of the Management?

A. Profitability

B. Integrity

C. Efficiency

D. Business Decisions

Explanation:(B) Corporate Governance is a set of code of conducts, policy and procedures of a company's operations and its dealings with various stakeholders internal as well as external stakeholders i.e. corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, etc.

Thus it becomes very important for a company to maintain the level of integrity to sustain the business activity.

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Today's Current Affairs For SSC CGL, BANKING, RRB NTPC, RBI, SEBI, Exam 29th September 2020

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                   Daily Current Affairs for the upcoming examination like SSC CGL, IBPS, SEBI, RBI etc.  For all Current Affairs Archive CLICK HERE

National Current Affairs 

• Union Home Ministry sanctioned three new NIA branches at Imphal, Chennai, Ranchi.

• ITBP Director General S S Deswal given additional charge of (National Security Guard) NSG DG.

• India will have now closer scrutiny of imports under Free Trade Agreements (FTAs).

• Department for Promotion of Industry and Internal Trade under Ministry of Commerce and Industry, shared list of key sectors with ministries to work on plan to boost manufacturing including  including food processing, toys, furniture, agro chemicals & textiles.

• Union Health Ministry, Union Health Minister Dr. Harsh Vardhan launched a portal, "Vaccine web portal" & "National Clinical Registry for COVID-19", for updates on COVID-19 vaccine development.

• India, United States, Japan, Australia hold virtual meet on Indo-Pacific under Quad Framework (Quadrilateral Security Dialogue).

• President Ram Nath Kovind gave assent to 3 Farm Bills passed by the Parliament Namely, (1) The Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, (2)The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Service Bill, 2020, (3) The Essential Commodities (Amendment) Bill, 2020.

• A bridge named, 'Cable Stayed Bridge' was constructed across Durgam Cheruvu Lake in Telangana. Telangana 

• Municipal Administration and Urban Development Minister K Taraka Ramarao inaugurated it.

• Maritime Union of India (MUI) collaborated with United Nations (UN) to help Indian Sailors struck on ships

• Maharashtra announced the Gan Samragni Lata Mangeshkar award for year 2020-21 to veteran female playback singer Usha Mangeshkar.

• National Institute of Naturopathy (NIN), Pune under Ministry of AYUSH, will be organizing a series of webinars on Gandhian philosophy of Self Reliance through Self Health Reliance on Mahatma Gandhi’s 150th birth anniversary celebrations from 2nd Oct 2020 and which will go on till National Naturopathy Day, i.e., 18th Nov 2020.

• Union Minister of Chemicals & Fertilizers Shri D.V. Sadananda Gowda said, “Chemicals” sector has huge potential for growth.

• National Fertilizers Limited, a PSU under  the Department of Fertilizers, tied up with Industrial Training Institute (ITI) Raghogarh (M.P. ) to train youth in various trades and to enhance the chances of their employability in heavy and process industry.

• Raksha Mantri Shri Rajnath Singh launched Defence India Startup Challenge-4; says defence Startup ecosystem is a decisive step towards achieving self-reliance in the spirit of AtmaNirbhar Bharat campaign. 

• Innovations for Defence Excellence (iDEX) for Fauji (iDEX4Fauji) launched for the first time to encourage innovation among soldiers.

• Environment Ministerial on Air Pollution and Stubble burning with Delhi, Punjab, Haryana, Uttar Pradesh and Rajasthan to be held on 01st of October.

• Dr. Harsh Vardhan, Union Minister of Health and Family Welfare, Science & Technology and Earth Sciences and Shri 

• Santosh Kumar Gangwar, Union Minister of State (Independent Charge), Labour & Employment released a booklet on ‘COVID-19- Safe Workplace Guidelines for Industry’ through virtual platform, in the presence of Dr. V. K. Paul, Member (Health), NITI Aayog.

• National Capital Regional Planning Board (NCRPB) New Delhi, sanctioned over ₹15k cr loan in over ₹31k crore worth projects: Durga Shanker Mishra.

• Power Finance Corporation Ltd (PFC) signed a performance-based ‘Memorandum of Understanding’ (MoU) with Ministry of Power, Govt. of India detailing various targets to be achieved by PFC during FY 2020-21.

INTERNATIONAL 

• Saudi Arabia announced it will hold the G20 summit virtually in November 2020.

• Mr Mustapha Adib, Lebanon's Prime Minister resigned.

BANKING & ECONOMY 

• Reserve Bank of India (RBI)  Extends Enhanced Borrowing Limit for Banks Under MSF Till March 31.

• ICRA Ratings projected India's GDP to contract by 11% in FY21.

• HDFC Bank launched Warehouse Commodity Finance App to enable customers in drawing down and managing the loan against pledge of commodities online without physical intervention.

• Epic Games acquires Microsoft-backed kidtech platform London based SuperAwesome.

• ESG Fund (Environment, Social and Governance) Recently, ICICI Prudential Mutual Fund has come out with its ESG fund. First ESG mutual fund was launched by the State Bank of India - SBI Magnum Equity ESG Fund.

• Bombay Stock Exchange (BSE) joins hands with Yes Bank to empower Small and Medium Enterprises (SMEs).

OBITUARIES

• Veteran songwriter Abhilash, 'Itni shakti hame dena daata' passes away.

• Eminent Critic, Writer Dr G S Amur passes away.

• Former Assam  Chief Minister Syeda Anwara Taimur passes away. She was the Chief Minister of Assam from Dec. 1980 to June 1981.

APPOINTMENT

• Reserve Bank of India (RBI) approved 3- Member Committee of Directors headed by Meeta Makhan to manage the crisis faced by Laxmi Vilas Bank.

• The Khadi and Village Industries Commission (KVIC) appoints Sunil Sethi as its Advisor. Presently, Sunil Sethi is the Chairman of the Fashion Design Council of India.
• Learning app Entri roped in Robin Uthappa as its brand ambassador.

• Twitter appointed Rinki Sethi as new information security head. She was previously working with IBM.

• Alapan Bandyopadhyay appointed new Chief Secretary of West Bengal. He will replace Rajiva Sinha.

• P. D. Vaghela appointed as new Telecom Regulatory Authority of India (TRAI) chairman.

• Former Mali Foreign Minister Moctar Ouane named transitional Prime Minister.

IMPORTANT DAYS

• September 29: International Day of Awareness on Food Loss and Waste Reduction. In 2019, UN designated 29 September as International  Day of Awareness of Food Loss & Waste recognizing the vital role sustainable food production. Theme- Stop food loss and waste. For the people. For the planet.

• September 29: World Heart Day. Created by World Heart Federation on September 29, 1999. Theme- Use heart to beat CVD.

• September 27: World Deaf Day. Theme- Reaffirming Deaf People's Human Rights.

SPORTS 

• Final grand slam of the year 'French Open' begins in Paris. It is related to Tennis sports.

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Top RRB NTPC, RRB JE, Group D Previous Year General Science and GK Questions: Part 3

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            Solving previous year question paper is very crucial if you want to crack RRB NPTC. We have provided you the Previous Year Questions of General Science Questions asked in RRB NTPC, RRB JE, etc. 

                   

Top Previous Year Questions Asked in RRB NPTC, RRB JE, RRB Group D

Q1. The medieval ruler who was  the first to establish a ministry of agriculture (Diwan-i-Kohi) was

Answer: Muhammad Bin Tughlaq. He is also known as a "Man of Ideas".

Q2. When did Queen Victoria declared the taking over the Indian Administration under British crown?

Answer: 1st November 1958.

Q3. Shivasundaram Falls are located in the course of the river

Answer: Shivasundaram Falls is on the Kaveri River in Mandya District of Karnataka.

Q4. In Baseball, how many players are there in each side?

Answer: Baseball - 9 Players in each team.

Q5. Viruses are made up of

Answer: Nucleic acid and Protein.

Q6. Paralympics is a multi-sport event involving those athletes who are

Answer: Athletes with a range of physical disability.

Q7. Which country called 'Land of the Rising Sun' is

Answer: Japan.

Q8. The term 'Collegium System' is associated with

Answer: Judiciary

Q9. If you were to measure the strength of a current which instrument would you look for?

Answer: Ammeter is used to measure current in a circuit.

Q10. Who built the Pyramids?

Answer: Pharaohs Khufu.

Q11. Which method will be suitable to separate yoghurt (curd) from water contained in it?

Answer: Filtration.

Q12. A bicycle pump works on the principle of

Answer: When volume decreases, pressure increases.

Q13. Give the term for 'Price of one currency in terms of another'.

Answer: Nominal Exchange Rate.

Q14. The football player has to leave the field if the referee shows him

Answer: Yellow card twice or Red card once.

Q15. The first Indian to win an Olympic gold medal in an individual capacity was

Answer: Abhinav Bindra.

Q16. When you touch a hot plate and immediately withdraw your hand, the action is triggered by your

Answer: Spinal Cord (Reflex Action).

Q17. We are able to walk on the ground because of

Answer: Friction.

Q18. The making of 'maps' is called

Answer: Cartography.

Q19. Who discovered the sea route to India?

Answer: Vasco da Gama.

Q20. In the Medieval times, Bedouins were

Answer: Wandering Arab camel herdsmen.

Q21. The major cause of top soil being lost due to soil erosion is

Answer: Deforestation.

Q22. The Treaty of Versailles was signed in the summer of 1919 with

Answer: Germany.

Q23. Which democratic country has an unwritten Constitution?

Answer: England.

Q24. The first capital of British Colonial India was

Answer: Kolkata (Calcutta).

Q25. Who founded the Indian National Congress?

Answer: Allan Octavian Hume.

Q26. Which one of the following is not a 'social insect'?

Answer: Beetle.

Q27. Who coined the phrase 'Survival of the fittest' to mean Natural Selection?

Answer: Herbert Spencer.

Q28. Tornado intensity is measured by

Answer: Saffir-Simpson scale.

Q29. Small insects can walk on water because

Answer: Insects weight is not enough to penetrate into the surface.

Q30. Fathometer is a device used to measure

Answer: Depth of Water.

Q31. Who proposed the theory of atomic energy for the first time in the beginning of the nineteenth  century?

Answer: John Dalton.

Q32. Powerloom invention is associated with:

Answer: Edmund Cartwright.

Q33. The study of insects is called?

Answer: Entomology.

Q34. Trachoma is a disease of the

Answer: Eyes.

Q35. The vitamin which is liable to be destroyed during cooking is

Answer: Vitamin C.

Q36. Science dealing with study of soil is called

Answer: Pedology.

Q37. The arrangement of leaves on an axis or stem is called

Answer: Phyllotaxy.

Q38. An ant can see the objects all around due to the presence of ?

Answer: Compound eyes.

Q39. Who has developed the technology of the ground nuclear explosion?

Answer: Dr. Homi J. Bhabha.

Q40. Penicillin is extracted from?

Answer: Penicillium fungi/ Fungus.

Q41. Which enzyme is present in all part of pineapple plant?

Answer: Bromelaine.

Q42. What is the formula of Limestone?

Answer: CaCO3 (Calcium Carbonate).

Q43. A process in which no heat crosses the boundary of the system is called

Answer: Adiabatic Process.

Q44. Zeroth law of Thermodynamics is the basis of 

Answer: Temperature measurement.

Q45. Bed of lathe machine is made up of cast iron because it has

Answer: A good shock absorbing property.

Q46. Receptors used to detect taste are known as

Answer: Gustatory receptors.

Q47. IRS series of Indian Satellites are used for:

Answer: Remote Sensing.

Q48. Antonio Meucci is associated with the invention of:

Answer: Telephone.

Q49. In order to help in the freedom struggle, which newspaper was started by LokmanyaTilak?

Answer: Kesari.

Q50. While cooking, if the bottom of the vessel is getting blackened on the outside, it means that

Answer: The fuel is not burning completely.

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Today's Current Affairs For SSC CGL, BANKING, RRB NTPC, RBI, SEBI, MBA Exam 27th & 28th September 2020

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                              Daily Current Affairs update for your upcoming examination like SSC CGL, IBPS, UPSC, SEBI, and RBI Grade B etc. For All Current Affairs CLICK HERE

National Current Affairs 

• UK India Business Council and West Bengal government signed MoU to strengthen West Bengal Industrial Development Corporation (WBIDC).

• IIT Madras developed 'MOUSHIK' Microprocessor for Internet of Things (IoT).

• Assam launched app named 'visitassam' for air passengers.

• Prime Minister Narendra Modi and Nation pays homage to revolutionary freedom fighter Bhagat Singh on his 113th birth anniversary.

• Union Minister Amit Shah inaugurates "Destination North East- 2020" Festival virtually.

• India & Denmark signed MoU on Intellectual Property Cooperation.

• UP's first conservation centre for vultures to be set up in the Bhari Baisi village in Gorakhpur. 

• Odisha Govt. Launch Radio Pathshala program for students upto class 8.

• Maharashtra becomes first state in country to ban sale of loose cigarettes.

• Khadi and Village Industries Commission  (KVIC) opens outlet in SPG complex to promote 'Swadeshi'.

• Prime Minister Narendra Modi announced India extends $15 million grant assistance to Sri Lanka for promoting Buddhist ties.

• India’s sandalwood trees are facing a threat due to Sandalwood Spike Disease (SSD).

• Centre released first instalment of over Rs. 19,000 Crore for Paddy procurement under MSP Scheme.

• Maharashtra Governor launched "chemo" recovery kits containing Ayurvedic formulation.

• Prime Minister Narendra Modi to inaugurate six mega projects in Uttarakhand under Namami Gange.

• Prime Minister Narendra Modi to launch a Book titled “Rowing Down the Ganges” and to inaugurate a Ganga Avalokan, a first of its kind museum on Ganga.

• Defence Acquisition Council (DAC) headed by Defence Minister Shri Rajnath Singh accords approval for various arms and equipment worth Rs. 2,290 crore.

• The Union Minister of Health and Family Welfare Dr. Harsh Vardhan unveils ICMR’s History Timeline.

• Indian Railway rolls out User Depot Module (UDM), this will help to digitalize work with real time transactions and online information exchange among all stakeholders.

• Ministry of Tourism organizes Dekho Apna Desh Webinar Series on “Rural Tourism: From Previous Niche to Future Norm", which focuses on villages, people, farming, and culture.

• The Ministry of Statistics and Programme Implementation released 'Health in India' Report.

• Bangalore International Airport Limited (BIAL) & Virgin Hyperloop signed MoU to study feasibility of high-speed corridor.

INTERNATIONAL 

• World Bank approved $200 million loan for safe water and sanitation services in Bangladesh.

• QS Global MBA Rankings 2021: IIM Ahmedabad, Bangalore, Calcutta top Indian B-schools. IIM A ranked 31st.

• G7 finance ministers backed  extension of G20 bilateral debt relief initiative.

• Prime Minister Narendra Modi Announced $15 million Grant to Promote Buddhist Ties Between India and Sri Lanka.

BANKING & ECONOMY 

• Vakrangee Ltd gets RBI nod to set up Bharat Bill Payment Operating Unit.

• SBI Card launched brand campaign ‘Contactless Connections’. 

• Axis Bank and Bayer's Better Life Farming Institute join hands to provide affordable loans to farmers.

• UTI Mutual Funds and Defense PSU, Mazagon Dock Shipbuilders coming up with IPO (Initial Public Offering).

• UTI Mutual Fund first to launch a Momentum Investing Fund named 'UTI Momentum Investing Fund'.

AWARDS 

• Assam’s Srimanta Sankaradeva Award 2017 conferred to Sattra Basishta Deva Sarma.

OBITUARIES

• Swami Pratyagbodhananda, Hindu spiritual guru, passes away.

• Former former Union Minister Shri Jaswant Singh passes away.

• Economist and Padma Bhushan awardee Isher Judge Ahluwalia, 'An Icon For Women Economists', passes away. 

APPOINTMENT

• Former India cricketer Neetu David appointed as head of BCCI’s All-India Women's Selection Committee.

• L Adimoolam appointed as President of Indian Newspaper Society.

• Reserve Bank of India ropes in Amitabh Bachchan for Customer Awareness Campaign to prevent account holders from being duped.

IMPORTANT DAYS

• September 28: Gunners Day.

• September 28: World Rabies Day. Theme: “End Rabies: Collaborate, Vaccinate”.

• September 28: International Day for Universal Access to Information. (UNESCO)

• September 27: World Tourism Day. Theme:  “Tourism and Rural Development”.

• September 26: World Contraception Day.

BOOKS

• Anand Neelakantan debuts book named, ‘The Very, Extremely, Most Naughty Asura Tales’ for Kids.

SPORTS 

• Australia's wicket-keeper Alyssa Healy breaks MS Dhoni's record of having most dismissals as a wicketkeeper in the T20.

• Valtteri Bottas won the Russian Grand Prix for Mercedes, Lewis Hamilton misses F1 win record.

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Securities Market and General Awareness MCQs for SEBI Grade A 2020 Exam Part - 4

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 SEBI Grade A  – exam is going to be conducted very soon. To prepare better and to the point, aspirants need to study relevant and valuable material. The below post gives the detailed questions answers for SEBI Grade A Securities Market and General Awareness. Read all MCQs Archive CLICK HERE

Securities Market and General Awareness for SEBI Grade A/ RBI Grade B

Q1. Which bond gives its issuer the right to redeem or pay the bonds before its maturity date?

A. Zero Coupon Bond

B. Puttable Bond

C. Debentures

D. Callable Bonds

E. None of the Above

Explanation: (D) A callable bond allows the issuing company to pay off their debt early. 

• A business may choose to call their bond if market interest rates move in its favour. Means the prevailing  interest rates are low as compared to the interest the company is paying to the bondholders.

• Callable bonds are akin to call options, where the issuer has the right to call the bond before maturity.

• A callable bond is also called as redeemable bond.

• Issuers (any business entity) entice investors to buy callable bonds by paying higher interest rates on callable bonds than on noncallable bonds.

• A callable bond also gives the borrower (issuer) the right to pay back the obligation to the lender (bondholder) before the stated maturity date. 

Q2. Which debt financial securities pay off in the short term, usually within one year.

A. Bond Market

B. Money Market

C. Primary Market

D. Secondary Market

E. None of the above.

Explanation: (B) Money Market refers to a financial market securities where these instruments with high liquidity and short-term maturities are traded. 

• Basically money market instruments are pay off within a very short period generally one year.

• Money market financial instruments consists of negotiable instruments such as:

          A. Commercial Papers.

          B. Treasury Bills

                      Following are the types of T-bills in India:

                     1. 14-day Treasury bill

                     2. 91-day Treasury bill

                     3. 182-day Treasury bill

                    4. 364-day Treasury bill

        C. Certificates of Deposit.

• The Money Market instruments are usually traded over-the-counter (OTC), and therefore, it has to be done through a financial intermediary especially a broker dealing in money market financial instruments or money market mutual fund.

• The investment period in money market financial instruments is very short, ranging from three months up to a year.

Q3. What does E stands for in ECBs?

A. External

B. Extreme

C. Easy

D. Economy

E. None of the above

Explanation: (A) ECB stands for External Commercial Borrowings.

• External commercial borrowing are loans in India made by non-resident lenders in foreign currency to Indian borrowers. In simple terms ECBs allows Indian firms to raise money outside the country in foreign currency.

• The cost of funds is usually cheaper from external sources if borrowed from economies with a lower rate of interest because that helps the Indian businesses to raise funds cheaply.

Q4. Temporary overdrafts facility by Reserve Bank of India to the Government is known as?

A. Ways and Means Advances

B. Primary Money

C. Overdraft Finance

D. Lending Operation

E. None of the above

Explanation: (A) Ways and Means Advances. 

• The WMA scheme was introduced on April 1, 1997.

• Ways and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments.

• In basic terms, it is the facility for the GoI and states government to borrow money from the Reserve Bank of 

• India. This facility is done as per the provisions laid down in Section 17(5) of the RBI Act, 1934.

• Its limits are mutually decided by the Government and RBI.

Q5. An RBI monetary policy instrument which involves buying and selling of government securities to the public or other financial institutions is known as?

A. Interest Rate Operation

B. Open Market Operation

C. Green Shoe Option

D. Fiscal Rate Operation.

E. None of the above.

Explanation: (B) Open Market Operation

• An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks.

• When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market and it sells government securities to suck out liquidity from the system.

• RBI uses this operation to maintain money supply or to deal with liquidity problems in the economy.

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