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36 questions from UPSC CSE Prelims GS Paper 1 on Financial Markets & Capital Markets (Indian Economy). Spanning from 1995 to 2024. Practice with show/hide answers and detailed explanations.
36
Questions
21
Years
18
Easy
16
Moderate
Practice these questions in quiz mode
Based on 36 questions across 21 years, UPSC has consistently tested aspirants' understanding of Financial Markets & Capital Markets within the broader Indian Economy syllabus. The questions range from factual recall to application-based analysis.
Recent trends show UPSC moving towards statement-based questions that combine multiple aspects of Financial Markets & Capital Markets. Aspirants should focus on understanding concepts rather than memorizing isolated facts.
Q: In India, which of the following can trade in Corporate Bonds and Government Securities? 1. Insurance Companies 2. Pension Funds 3. Retail Investors Select the correct answer using the code given below:
Q: Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments?
Q: Consider the following statements: Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable. Statement-II: InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'. Which one of the following is correct in respect of the above statements?
Q: Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?
Q: Consider the investments in the following assets: 1. Brand recognition 2. Inventory 3. Intellectual property 4. Mailing list of clients How many of the above are considered intangible investments?
Q: In the context of finance, the term 'beta' refers to
Q: With reference to the Indian economy, what are the advantages of "Inflation-Indexed Bonds (IIBs)"? 1. Government can reduce the coupon rates on its borrowing by way of IIBs. 2. IIBs provide protection to the investors from uncertainty regarding inflation. 3. The interest received as well as capital gains on IIBs are not taxable. Which of the statements given above are correct?
Q: Consider the following statements: 1. In India, credit rating agencies are regulated by Reserve Bank of India. 2. The rating agency popularly known as ICRA is a public limited company. 3. Brickwork Ratings is an Indian credit rating agency. Which of the statements given above are correct?
Q: With reference to Convertible Bonds, consider the following statements: 1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest. 2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices. Which of the statements given above is/are correct?
Q: Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below.
Q: With reference to India, consider the following statements : 1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market. 2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India. 3. The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?
Q: The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of
Q: With reference to the Indian economy, consider the following statements : 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation. 3. ‘Call Money’ is a short-term finance used for interbank transactions. 4. ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations. Which of the statements given above is/are correct ?
Q: Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
Q: Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?
Q: With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct? 1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank. 2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector. Select the correct answer using the code given below.
Q: What is/are the purpose/purposes of Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme'? 1. To bring the idle gold lying with Indian households into the economy 2. To promote FDI in the gold and jewellery sector 3. To reduce India's dependence on gold imports Select the correct answer using the code given below.
Q: What does venture capital mean?
Q: In the parlance of financial investments, the term ‘bear’ denotes
Q: In India, which of the following is regulated by the Forward Markets Commission ?
Q: Which one of the following pairs is not correctly matched?
Q: In the context of Indian news in recent times, what is MCX-SX ?
Q: What does S & P 500 relate to?
Q: Participatory Notes (PNs) are associated with which one of the following?
Q: What is IndoNext which was launched in January, 2005?
Q: Consider the following statements : 1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE) 2. For calculating the Sensex, all the Sensex stocks are assigned proportional weightage. 3. New York Stock Exchange is the oldest stock exchange in the world. Which of the statements given above is/are correct?
Q: Debenture holders of a company are its
Q: Among the following major stock exchanges of India, which one recorded the highest turnover during the year 2001-02?
Q: Gilt-edged market means
Q: The upper part of the graph is a hypothetical movement in the BSE Sensex over a few months and the lower part is the fluctuation in the average value of automobile shares in the same period (actual values not given). Which one of the following inferences can be drawn from the graphs?
Q: A rise in ‘SENSEX’ means
Q: Which of the following pairs are correctly matched? I. Dow Jones : New York II. Hang Seng : Seoul III. FTSE-100 : London Select the correct answer using the codes given below:
Q: The behaviour of a fictitious stock market index (comprising a weighted average of the market prices of a selected list of companies including some multinational corporations (MNCs) over a 15-day period is shown in the graph. The behaviour of the MNC’s in the same period is also shown in the second graph. Which one of the following is a valid conclusion?
Q: To prevent recurrence of scams in Indian Capital Market, the Government of India has assigned regulatory powers to
Q: Which one of the following is the largest mutual fund organisation in India?
Q: The price fluctuations of 4 scrips in a stock market in the four quarters of a year are shown in the table below. Four different investors had the following portfolios of investment in the four companies throughout the year: Investor 1: 10 of A, 20 of B, 30 of C and 40 of D Investor 2: 40 of A, 10 of B, 20 of C and 30 of D Investor 3: 30 of A, 40 of B, 10 of C and 20 of D Investor 4: 20 of A, 30 of B, 40 of C and 10 of D In the light of the above, which one of the following statements is correct?
UPSC has asked 36 questions on Financial Markets & Capital Markets in GS Paper 1 Prelims between 1995 and 2024. This sub-topic falls under Indian Economy.
Questions on Financial Markets & Capital Markets have appeared in UPSC Prelims in the following years: 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2016, 2014, 2010, 2009, 2008, 2007, 2006, 2005, 2003, 2002, 2000, 1998, 1997, 1995. The topic has appeared in 21 out of 31 years.
Among 36 questions on Financial Markets & Capital Markets: 18 are easy, 16 are moderate, and 2 are difficult. Most questions test conceptual understanding of the topic.
