Question : Case Study 34
ABC Ltd. is a conglomerate planning to expand its operations. The company's management is considering the roles of SEBI in the financial market.
Question :
What is the full form of SEBI?
Option 1: Securities and Exchange Board of India
Option 2: Stock Exchange and Banking Institution
Option 3: Securities and Equity Brokerage Institute
Option 4: Stock Exchange and Business Investment
Correct Answer: Securities and Exchange Board of India
Solution : The correct answer is (a) Securities and Exchange Board of India
The full form of SEBI is Securities and Exchange Board of India. SEBI is the regulatory body in India that oversees and regulates the securities market, protecting the interests of investors and promoting the development and regulation of the securities market.
Answer laterQuestion : Statement 1: The sectoral composition of GDP in India, Pakistan, and China is characterized by the dominance of the primary sector.
Statement 2: Services such as IT, telecommunications, banking, and tourism plays a negligible role in the economies of these countries.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, Statement 2 is false.
Option 4: Statement 2 is true, Statement 1 is false.
Correct Answer: Statement 2 is true, Statement 1 is false.
Solution : The correct answer is (d) Statement 2 is true, Statement 1 is false.
Statement 1 claims that the sectoral composition of GDP in India, Pakistan, and China is characterized by the dominance of the primary sector. This statement is false. While the primary sector, which includes agriculture, forestry, and mining, has historically played a significant role in the economies of these countries, their GDP composition has shifted over time. India, Pakistan, and China have all experienced a transition toward a more diversified economy, with the secondary sector (including manufacturing and industry) and the tertiary sector (including services) gaining prominence.
Statement 2 states that services such as IT, telecommunications, banking, and tourism play a negligible role in the economies of these countries. This statement is true. Services have emerged as significant contributors to the GDP of India, Pakistan, and China. IT services, telecommunications, banking and financial services, and tourism are all sectors that have seen substantial growth and contribute significantly to the overall economies of these countries.
Therefore, statement 2 is true, Statement 1 is false.
Question : The "Pradhan Mantri Jan Dhan Yojana (PMJDY)" aims to provide:
Option 1: Financial inclusion and access to banking services
Option 2: Universal healthcare coverage for all citizens
Option 3: Affordable housing for all homeless individuals
Option 4: Education and skill development for unemployed youth
Correct Answer: Financial inclusion and access to banking services
Solution : The correct answer is (a) Financial inclusion and access to banking services.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government scheme launched by the Indian government in 2014. Its primary objective is to promote financial inclusion by providing access to banking services, particularly to the unbanked and underbanked sections of society.
The PMJDY focuses on opening bank accounts for all individuals, especially those from low-income households, who do not have access to formal banking services. The scheme aims to ensure that every household has access to a basic savings bank account, a debit card, and various banking services such as remittances, insurance, and pension.
The PMJDY also aims to encourage financial literacy and provide affordable financial services to promote savings and enable access to credit for income generation and entrepreneurship.
Question : Comprehension:
In the following passage, some words have been deleted. Read the passage carefully and select the most appropriate option to fill in each blank.
The modern world (1) ________ around technology. It has advanced dramatically in the beyond twenty years, and presently, we can't envision a world without PCs and cell phones. The last century saw fast progressions in innovation and science, which were unfathomable previously. The internet is perhaps the most significant of these. Today, it is no longer a science fiction concept to communicate with people anywhere in the world. While smartphones keep us constantly connected to the virtual world, the wireless internet has eliminated the need to use a physical wire to connect with this world. Today, we rely on the Internet to pay our bills, book tickets, travel, and conduct banking transactions. Li-Fi, a new technology that uses light signals to (2) ________ data and reduces external interference, is currently in development.
On the other hand, such rapid progress comes with some (3) ________. Another sort of wrongdoing, known as digital wrongdoing, is the greatest danger to security today. WannaCry was one of the biggest recent cyberattacks. It infected more than 230,000 computers in over 150 countries and threatened to erase valuable data unless ransom payments were made. Personal and (4) ________ data continue to be stolen frequently, and our country's cyber security is still lacking. It's also possible to say that people miss out on important experiences in the real world because they spend so much time in the virtual world. The distinction between the real and online worlds sometimes appears to blur, especially as social media grows in popularity. For instance, the internet was said to have become so addictive in China that programmes were established to help people get off of it. However, technology's benefits (5)________ its drawbacks. It all comes down to what we do with it. One thing to keep in mind is that technology can serve us well, but not completely.
Select the most appropriate option to fill in the blank no. 5.
Option 1: balances
Option 2: shadows
Option 3: outweigh
Option 4: insides
Correct Answer: outweigh
Solution : The most appropriate choice is the third option.
Outweigh means to have more significance than the other. The sentence discusses the balance between the benefits and drawbacks of technology, emphasising that the benefits are greater or more significant than the drawbacks.
Question : Receipts from services like insurance , banking, etc., is written on ________ side of __ account.
Option 1: Credit, current
Option 2: Credit, capital
Option 3: Debit, current
Option 4: Debit, capital
Correct Answer: Credit, current
Solution : Receipts from services like insurance , banking, etc., is shown on the credit side of current account.
Hence, Option A is correct.
Question : A city primarily known for its financial services and banking sector would be classified as a:
Option 1: Industrial city
Option 2: Financial hub
Option 3: University town
Option 4: Tourist destination
Correct Answer: Financial hub
Solution : Correct Option: Option 2
Explanation: A financial hub is an urban settlement that is primarily known for its financial services and banking sector, serving as a center for economic transactions.
Question : The question below consists of a set of labelled sentences. Out of the four options given, select the most logical order of the sentences to form a coherent sentence.
Microfinance refers to
P typically excluded from traditional banking.
Q low-income individuals or groups who are
R the financial services provided to
Option 1: RQP
Option 2: PQR
Option 3: QPR
Option 4: QRP
Correct Answer: RQP
Solution : The correct answer is option 1.
Explanation:
The given paragraph states what microfinance is.
Microfinance refers to the financial services provided to low-income individuals or groups who are typically excluded from traditional banking.
Question : Comprehension:
In the following passage, some of the words have been deleted. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.
Gaming in the banking sector seems virtually (1) _____ to eliminate. The only effective measure to end it would be to (2) _____ bankers personally liable for losses, to remove the sense that their actions—their games—have (3) ______ personal financial or legal consequences.
It is this, rather (4) ______ removing the cap on bankers' bonuses, that has the best chance of preventing the financial system from blowing (5) ____ again.
Question:
Select the most appropriate option to fill in the blank number 2.
Option 1: gave
Option 2: bake
Option 3: take
Option 4: make
Correct Answer: make
Solution : The fourth option is the correct choice.
The passage suggests that the only effective measure to end gaming in the banking sector would be to make bankers personally liable for losses. Make in this context implies instituting a policy or regulation that compels or requires bankers to be personally accountable for losses.
The meanings of the other options are as follows:
-
Gave means to provide or present something.
-
Bake means to cook by dry heat.
-
Take means to acquire, grasp, or accept something.
Therefore, the correct answer is, make.
Question : Banking sector reforms led to attractive deposit avenues, easier credit terms and a sound effective and reliable banking system is a result of the ___________ environment.
Option 1: Business
Option 2: Economic
Option 3: Social
Option 4: Legal
Correct Answer: Economic
Solution : Economic environment refers to all the forces and factors which directly influence the economy of your country. Economic environment consists Gross domestic product, Income level at national level and per capital level etc.
Hence, option 2 is the correct answer.
Question : Banking comes under which of the following sectors?
Option 1: Primary sector
Option 2: Secondary sector
Option 3: Tertiary sector
Option 4: Both secondary and tertiary sector
Correct Answer: Tertiary sector
Solution : The correct answer is the Tertiary sector.
The financial services sector, which is a subset of the tertiary sector, includes banking. The tertiary sector, usually referred to as the service sector, includes a broad spectrum of non-production-based services. Retail, transportation, healthcare, education, tourism, and financial services, including banking, insurance, and investment services, are all included in this.
