Q1 | Money Market vs Capital Market (Classification)

Which of the following are part of the "Capital Market" in India?

1. Call Money Market
2. Government Bond Market
3. Stock Market
4. Treasury Bill Market

Select the correct answer using the code given below: (a) 1 and 4 only      (b) 2 and 3 only      (c) 1, 2 and 3 only      (d) 2, 3 and 4 only

Q2 | Alternative Investment Funds (Current)

Which of the following are treated as "Alternative Investment Funds" under SEBI (AIF) Regulations, 2012?

1. Venture Capital Funds
2. Exchange Traded Funds
3. Hedge Funds
4. Real Estate Investment Trusts

Select the correct answer using the code given below: (a) 1 and 3 only      (b) 1, 2 and 3      (c) 2 and 4 only      (d) 1, 3 and 4

Q3 | Bond Concepts (Application-Based)

Consider the following statements:

1. Convertible bonds typically offer a lower interest rate compared to non-convertible bonds of the same issuer.
2. A Zero Coupon Bond is issued at a premium over face value and redeemed at face value.
3. Bond prices and bond yields move inversely to each other.

Which of the statements given above is/are correct? (a) 1 and 3 only      (b) 2 and 3 only      (c) 3 only      (d) 1, 2 and 3

Q4 | Securities Markets Code Bill 2025 (Current)

With reference to the Securities Markets Code Bill, 2025, consider the following statements:

1. It seeks to repeal and replace the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996.
2. It proposes to increase the number of SEBI members from 9 to 11.
3. It has already been passed by both houses of Parliament and received Presidential assent.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 1 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q5 | Masala Bonds (Repeated Theme)

With reference to "Masala Bonds", consider the following statements:

1. They are rupee-denominated bonds issued in overseas markets.
2. The currency risk in Masala Bonds lies with the Indian issuer.
3. They are regulated by both the Reserve Bank of India and the Securities and Exchange Board of India.

Which of the statements given above is/are correct? (a) 1 and 3 only      (b) 1 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q6 | Social Stock Exchange (Current)

With reference to Zero Coupon Zero Principal (ZCZP) bonds in India, consider the following statements:

1. They are issued by Non-Profit Organisations listed on the Social Stock Exchange.
2. The investor receives no interest and no principal upon maturity.
3. These bonds can be freely traded on the secondary market.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 only      (d) 1, 2 and 3

Q7 | Derivatives (Conceptual)

Consider the following statements:

1. A "Call Option" gives the buyer the right but not the obligation to buy an asset at a fixed price on a future date.
2. A "Credit Default Swap" is a derivative where the protection buyer pays periodic premium to the protection seller who compensates if the underlying bond defaults.
3. A "Put Option" gives the buyer the obligation to sell an asset at a fixed price.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 1, 2 and 3      (c) 2 and 3 only      (d) 1 only

Q8 | CBLO (Repeated Theme from 2024)

Consider the following pairs:

Which of the pairs given above is/are correctly matched? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 and 3 only      (d) 1, 2 and 3

Q9 | Front-Running vs Insider Trading (Definition)

In the context of securities markets, "front-running" refers to: (a) The simultaneous buying and selling of the same security in different markets to exploit price differences (b) A trading practice where a broker executes a trade based on advance information about an upcoming large transaction (c) The use of non-public material information about a company by its insiders to trade in its securities (d) The practice of short-selling a security without first borrowing it from a broker

Q10 | Catastrophe Bonds (Current Affairs)

With reference to "Catastrophe Bonds" (Cat Bonds), consider the following statements:

1. They are issued by insurance companies to raise funds for paying claims.
2. The investor receives regular interest, but loses the principal if a specified catastrophe occurs.
3. They are an example of transferring insurance risk to the capital market.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 only      (d) 1, 2 and 3