1. Under SARFAESI Act, to serve the purpose of Asset reconstruction a company registered under ______ of the SARFAESI Act 2002 comes into action.

A. Section 1 B. Section 3 C. Section 5 D. Section 7 E. Section 9

2. Which of the following is/are a feature of Close – ended Mutual Fund scheme?

A. It does not have a fixed maturity period B. Scheme has a stipulated maturity period C. Net Asset Value (NAV) per unit is declared on a daily basis D. Both 1 & 3 E. Both 2 & 3

3. Owners of _______ are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly.

A. Bonus Shares B. Preference shares C. Participating Preference Share D. Commercial shares E. Convertible shares

4. In reference to secondary capital market, what does ‘P’ in MAPIN stands for?

A. Public B. Participant C. Provision D. Payment E. Permanent

5. Which of the following is a financial instrument that pays no interest while the investor holds it?

A. Inflation Indexed bond B. Negotiable bond C. Treasury bills D. Commercial paper E. Zero-coupon bond

Answers and Explanations
1. Answer - Option B
Explanation -
To serve the purpose of Asset reconstruction a company registered under Section 3 of the Securitization & Reconstruction of financial assets & Enforcement of security interest (SARFAESI) Act 2002 comes into action. Asset reconstruction means the acquisition by any securitization company or reconstruction company of any right or interest of any bank or financial institution in any financial assistance for the purpose of realization of such financial assistance.
2. Answer - Option B
Explanation -
A close-ended fund or scheme has a stipulated maturity period e.g. 3-5 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the new fund offer. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. In case of an Open-ended Mutual fund scheme; investors can conveniently buy and sell units at Net Asset Value (NAV) per unit which is declared on a daily basis.
3. Answer - Option B
Explanation -
Owners of Preference shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the company’s creditors, bondholders / debenture holders.
4. Answer - Option B
Explanation -
MAPIN (Market Participant Identification Number) is the Market Participants and Investors Integrated Database. The SEBI (Central Database of Market Participants) Regulations, 2003 were notified on November 20, 2003 under which, all the participants in the Indian Securities Market viz., SEBI registered intermediaries, listed companies and their associates and the investors were required to obtain a Unique Identification Number (UIN) in order to enable the regulator to establish the identity of person(s).
5. Answer - Option E
Explanation -
A Zero-coupon bond does not pay any interest payments to the bondholder. It is sold originally at a substantial discount from its eventual maturity value, paying the investor its full-face value when it comes due, with the difference between what he paid initially and what he finally collected representing the interest he would have received over the years it was held.

1. As per the latest ADB estimates, India’s GDP growth forecast will be ________ for 2019 -2020.

A. 7% B. 7.3% C. 7.2% D. 7.5% E. 7.4%

2. The Insolvency and Bankruptcy Board of India (IBBI) signed a MoU with ______ for implementation of the IBC, 2016 (Code).

A. SIDBI B. All Public Sector Banks C. RBI D. SEBI E. Both (2) and (3)

3. Under Pradhan Mantri Fasal Bima Yojana (PMFBY), what is the premium charged for Kharif crops?

A. 1.5% B. 1% C. 2% D. 3% E. 2.5%

4. Which is the largest fintech lending platform as per a report Credit Suisse?

A. pmmudra.com B. iciciloanin60minutes.com C. Idbiloan.com D. hdfchousingloans.com E. PSBloansin59minutes.com

5. Which of the following countries recently, launched the world’s first sovereign blue bond i.e. a pioneering financial instrument designed to support sustainable marine and fisheries projects?

A. Indonesia B. Brunei C. Seychelles D. Fiji E. Maldives

Answers and Explanations
1. Answer - Option C
Explanation -
The Asian Development Bank (ADB) has cut its India GDP growth forecast for 2019-20 to 7.2%. ADB had estimated 7.6% economic growth earlier. ADB is the first multilateral lending agency to slash India’s growth estimate.
ADB HQ- Mandaluyong, Philippines
President- Takehiko Nakao
2. Answer - Option D
Explanation -
The Insolvency and Bankruptcy Board of India (IBBI) signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) for implementation of the Insolvency and Bankruptcy Code, 2016 (Code) and its allied rules and regulations.
3. Answer - Option C
Explanation -
Under Pradhan Mantri Fasal Bima Yojana (PMFBY), there will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In the case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.The balance premium will be paid by the Government to provide the full insured amount to the farmers against crop loss on account of natural calamities.
4. Answer - Option E
Explanation -
Web portal PSBloansin59minutes.com launched recently emerged as the largest online lending platform, according to a report by global financial firm Credit Suisse. It provides a credit of up to Rs 1 crore to MSMEs in just 59 minutes. PSBloansin59minutes.com was launched by PM Narendra Modi.
5. Answer - Option C
Explanation -
Seychelles launched the world’s first sovereign blue bond – a pioneering financial instrument designed to support sustainable marine and fisheries projects. It raised US$15 million from international investors & demonstrates the potential for countries to harness capital markets for financing the sustainable use of marine resources.

1. Which of the following are examples of non-tax revenue? 1. Interest receipts because of loans by the central government 2. Dividends and profits on investments made by the government 3. Fees and other receipts for services rendered by the government 4. Customs duty

A. Only 1 B. Only 1 and 2 C. Only 1, 2 and 3 D. All of the above E. Other than the given options

2. In 1990-91, India faced a severe Balance of Payments Crisis. To recover from the crisis, India availed the Extended Fund Facility (EFF) of the IMF subject to the following obligatory conditions except: –

A. Devaluation of Rupee by 22%. B. Drastic Reduction in Peak Import Tariff (from 130% to 30%) C. Excise Duties to be hiked by 20% to neutralize the revenue cut due to Reduction in Import Tariff D. Govt. Expenditure to be cut down by 10% annually, i.e. Fiscal Prudence E. Current Account Deficit to be sustained minimum at 5%.

3. National Nutrition Mission (NNM) recently launched by the government aims to reduce “low birth weight” cases by ____ per annum.

A. 3% B. 1% C. 2% D. 7% E. 5%

4. The NAIS survey says that a proportion of households having outstanding debt were 52.5 per cent and 42.8 per cent for agricultural and non-agricultural households respectively. What is the term used for this in the survey?

A. Incidence of Indebtedness (IOI) B. Rate of Indebtedness (ROI) C. Level of Indebtness (LOI) D. Degree of Indebtness (DOI) E. Extent of Indebtness (EOI)

5. What do you understand by the term ‘Financial repression’?

A. It is the ability of the government to attract household saving to it by fixing the rules B. It is the method of collecting more tax from corporate to meet revenue targets C. It is the situation under the constitution so that financial emergency can be declared D. It is another name of Current account deficit E. Term to describe the extent of the problem of NPA.

Answers and Explanations
1. Answer - Option C
Explanation -
Non-tax revenue mainly consists of:
1. Interest receipts because of loans by the central government
2. Dividends and profits on investments made by the government
3. Fees and other receipts for services rendered by the government
4. Cash grants-in- aid from foreign countries and international organizations – Custom or import duties are levied by the Central
5. Government of India on the goods imported into India.
The rate at which customs duty is levied on the goods depends on the classification of the goods determined under the Customs Tariff. The Customs Tariff is generally aligned with the Harmonised System of Nomenclature (HSL).
2. Answer - Option E
Explanation -
EFF availed from IMF was subject to, all of the above conditions except point no. (e). All of the above measures (except (e)) were imposed for fast recovery of India from BoP Crisis. Devaluation would help in increasing the export competitiveness of the goods and services.
Import Tariff Reduction was aimed to make India an open market for the World, these stressing on competitiveness, better technology and availability of goods and services in which India was not self-sufficient.
Point 3 and Point 4 were imposed for improving the fiscal deficit of India. However, sustaining current account deficit at min. 5% is wrong as it will further worsen the BoP situation of India, which is in contradiction to the objectives of IMF and purpose of EFF facility.
3. Answer - Option C
Explanation -
NNM targets to reduce stunting, under-nutrition, anaemia (among young children, women and adolescent girls) and reduce low birth weight by 2%, 2%, 3% and 2% per annum respectively. Although the target to reduce Stunting is at least 2% p.a., Mission would strive to achieve reduction in Stunting from 38.4% (NFHS-4) to 25% by 2022 (Mission 25 by 2022). More than 10 crore people will be benefitted by this programme.
4. Answer - Option A
Explanation -
The financial inclusion drive has resulted in proliferation of bank accounts in rural areas with 88.1 per cent of households having savings accounts, as per NABARD’s All India Rural Financial Inclusion Survey (AFIS).
Incidence of Indebtedness (IOI), which is a proportion of households having outstanding debt on the date of the survey, was 52.5 per cent and 42.8 per cent for agricultural and non-agricultural households, respectively.
All India IOI taking rural households together stood at 47.4 per cent, as per the NABARD All India Financial Inclusion Survey (NAFIS)
5. Answer - Option A
Explanation -
Financial repression is a term that describes measures by which governments channel funds to themselves as a form of debt reduction. This concept was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon. Financial repression can include such measures as directed lending to the government, caps on interest rates, regulation of capital movement between countries and a tighter association between government and banks. The term was initially used in response to the emerging market financial systems during the 1960s, ’70s and ’80s.