<<1234567891011121314151617181920212223242526>> 1. What is the role of CCIL in Tripartite Repo Trades (TREPS)?Acting as a lender of fundsServing as a tri-party agentProviding collateral selection servicesFacilitating custody and management of securitiesQuestion 1 of 26 2. Who are eligible participants under TREP?Only scheduled commercial banksOnly listed corporatesAny regulated entity and listed corporatesOnly unlisted companiesQuestion 2 of 26 3. What is the main purpose of Repo under Liquidity Adjustment Facility (LAF) of RBI?To issue government securitiesTo control liquidity in the inter-bank marketTo provide loans to commercial banksTo conduct auctions for fixed-rate securitiesQuestion 3 of 26 4. What is the relationship between the Repo rate and the Reverse Repo rate set by RBI?Repo rate is always higher than the Reverse Repo rateReverse Repo rate is always higher than the Repo rateRepo rate sets the ceiling and Reverse Repo rate sets the floor for money market ratesRepo rate and Reverse Repo rate are fixed and do not changeQuestion 4 of 26 5. What is the main purpose of the Standing Deposit Facility (SD) introduced by RBI?To replace the Fixed Rate Reverse Repo (FRRR) as the ceiling of the LAF corridorTo provide longer-term liquidity absorption options to eligible entitiesTo encourage banks to maintain higher cash reserve ratiosTo facilitate interbank lending at a fixed interest rateQuestion 5 of 26 6. What is the main purpose of the Marginal Standing Facility (MSF) introduced by RBI?To provide longer-term liquidity absorption options to eligible entitiesTo replace the Fixed Rate Reverse Repo (FRRR) as the floor of the LAF corridorTo allow banks to borrow overnight funds from RBI against government securitiesTo provide additional liquidity to banks in times of need at a penal rateQuestion 6 of 26 7. What is the primary benefit to the lending bank in bill rediscounting?Higher interest rates compared to the money market rateReduced capital adequacy ratioAccess to liquidity from existing assetsLow credit risk with recourse to the discounting bankQuestion 7 of 26 8. What is the typical maturity range of bills of exchange eligible for rediscounting?1 to 3 months3 to 6 months6 to 9 months9 to 12 monthsQuestion 8 of 26 9. What is the primary function of the Reserve Bank of India (RBI) regarding government securities?Issuing and paying agency for government securitiesSetting coupon rates for government securitiesDetermining the face value of government securitiesInvesting in government securities for profitQuestion 9 of 26 10. Which of the following is NOT a category of bank investments in government securities?Held to Maturity (HTM)Available for Sale (AFS)Held for Trading (HFT)Held for Earning (HFE)Question 10 of 26 11. What distinguishes corporate debt paper from government securities and other approved securities?It has a lower yield than government securitiesIt is issued in physical form onlyIt is eligible for meeting SLR requirement of banksIt is issued by the Reserve Bank of IndiaQuestion 11 of 26 12. Which of the following credit rating agencies is NOT registered with SEBI for rating corporate debt?CRISILICRA LimitedMoody's Investors ServiceCredit Analysis & Research Limited (CARE)Question 12 of 26 13. What is a key distinction between debentures and bonds?Debentures are always issued by public sector companies, while bonds are issued by private sector companies.Debentures are secured by specific assets, while bonds are unsecured debt instruments.Debentures are negotiable instruments, while bonds are transferable only by registration.Debentures have convertible features, while bonds do not.Question 13 of 26 14. What is a key feature of convertible bonds?They have a higher coupon rate compared to non-convertible bonds.Bondholders have the option to convert the debt into equity at a predetermined price.They cannot be converted into equity under any circumstances.They are exclusively issued by public sector companies.Question 14 of 26 15. What is one of the characteristics of preference share capital?It always carries voting rights.It is always irredeemable.It enjoys preferential rights with respect to dividend payment and capital return.It cannot be classified as cumulative or non-cumulative.Question 15 of 26 16. What is one of the factors influencing stock prices in the Indian stock market?Exchange rates of foreign currenciesMacroeconomic factors onlyFundamentals of the company and macroeconomic factorsChanges in commodity pricesQuestion 16 of 26 17. According to Section 19(2) of the Banking Regulation Act, what is the maximum limit for banks' capital market exposures in relation to the investee company's share capital?20%30%40%50%Question 17 of 26 18. What is the maximum limit for banks' direct exposures to the capital market in relation to their net worth?10%20%30%40%Question 18 of 26 19. Which sector has NOT seen a removal or increase in sectoral caps on foreign investment according to the text?DefenceBankingManufacturingTechnologyQuestion 19 of 26 20. What do ADR/GDR issues by Indian companies primarily enable?Mobilization of domestic currency resourcesMobilization of foreign currency resourcesPurchase of domestic equity shares by foreign investorsPurchase of foreign equity shares by domestic investorsQuestion 20 of 26 21. Who bears the exchange risk in ADR/GDR issues by Indian companies?Indian companiesDomestic investorsOverseas investorsStock exchangesQuestion 21 of 26 22. What is the primary purpose of External Commercial Borrowings (ECB) for Indian companies?Mobilization of domestic currency resourcesFunding domestic projects onlyBorrowing from domestic banksBorrowing in global markets for funding domestic/overseas projectsQuestion 22 of 26 23. Who bears the exchange risk in External Commercial Borrowings (ECB) by Indian companies?Overseas investorsIndian borrowing companiesReserve Bank of India (RBI)Foreign banksQuestion 23 of 26 24. What is the maximum amount individuals can remit overseas annually under RBI's Liberalised Remittance Scheme (LRS)?USD 1,00,000USD 2,00,000USD 2,50,000USD 5,00,000Question 24 of 26 25. What is the primary purpose of the Liberalised Remittance Facility (LRS) introduced by RBI?To restrict individuals from remitting money overseasTo permit individuals to remit money overseas freely, up to a specified limitTo facilitate remittance only for specific purposes like investment in domestic projectsTo allow banks to extend credit facilities for remittance purposesQuestion 25 of 26 26. How did the global recession in 2008-09 impact India's financial markets?It led to an appreciation of the Rupee and lower interest costsIt resulted in increased FII flows and strengthened the stock marketsIt caused a depreciation of the Rupee, a crash in stock markets, and raised interest costsIt had no significant impact on India's financial marketsQuestion 26 of 26 Loading...
