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 5.
Option 1: on
Option 2: into
Option 3: up
Option 4: off
Correct Answer: up
Solution : The third option is the correct choice.
The phrase blowing up is commonly used to describe a catastrophic failure, explosion, or severe disruption. In the context of the passage, using up appropriately conveys the idea of preventing the financial system from experiencing a severe failure or collapse.
Therefore, the correct answer is, up.
Answer laterQuestion : Which of the following institutions is responsible for regulating and supervising the functioning of non-banking financial companies (NBFCs) in India?
Option 1: Reserve Bank of India (RBI)
Option 2: Securities and Exchange Board of India (SEBI)
Option 3: National Stock Exchange of India (NSE)
Option 4: None of the above
Correct Answer: Reserve Bank of India (RBI)
Solution : The correct answer is (a) Reserve Bank of India (RBI)
The correct institution responsible for regulating and supervising the functioning of non-banking financial companies (NBFCs) in India is the Reserve Bank of India (RBI).
The RBI is the primary regulatory authority for NBFCs in India. It formulates regulations, guidelines, and prudential norms for NBFCs and oversees their operations. The RBI issues licenses to NBFCs, specifies the regulatory framework, sets capital adequacy norms, and monitors their compliance with regulatory requirements. The RBI's objective is to ensure the stability and resilience of the NBFC sector and protect the interests of depositors and consumers.
Question : The phenomenon of raising the outer edge of the curved roads above the inner edge to provide the necessary centripetal force to the vehicles to take a safe turn is called __________________.
Option 1: Banking of roads
Option 2: Cornering of roads
Option 3: Elevation of roads
Option 4: Tempering of roads
Correct Answer: Banking of roads
Solution : The correct option is the Banking of roads.
A construction method known as road banking is used to make curving roads safer for vehicles to travel on at faster speeds. The road surface can be carefully tilted to raise the outer edge over the inner edge, creating a centripetal force that makes turning by cars safer and more effective. Vehicles are less likely to flip over or lose control while navigating curves owing to this construction.
Question : Which of the following is not a function of a stock exchange?
Option 1: Facilitating trading of securities
Option 2: Ensuring fair and transparent transactions
Option 3: Regulating the banking sector
Option 4: Providing liquidity to investors
Correct Answer: Regulating the banking sector
Solution : The correct answer is (c) Regulating the banking sector.
Regulating the banking sector is not a function of a stock exchange. Stock exchanges primarily serve as marketplaces where securities such as stocks, bonds, and derivatives are bought and sold. They facilitate the trading of securities between buyers and sellers.
However, regulating the banking sector is typically the responsibility of regulatory bodies such as central banks and financial regulatory authorities. These entities oversee and regulate banks, ensuring their compliance with banking laws, capital requirements, and prudential regulations.
Question : Which of the following statements is an example of positive economics?
Option 1: The government should regulate the banking sector to prevent financial crises.
Option 2: Tax cuts for corporations will stimulate economic growth.
Option 3: Wealth redistribution is necessary for a just society.
Option 4: Economic efficiency should be prioritized over equity.
Correct Answer: Tax cuts for corporations will stimulate economic growth.
Solution : The correct answer is (b) Tax cuts for corporations will stimulate economic growth.
Tax cuts for corporations will stimulate economic growth is an example of positive economics because it presents a cause-and-effect relationship based on empirical evidence and economic analysis. It suggests that tax cuts for corporations will lead to an increase in economic growth. Positive economics focuses on analyzing economic data and facts to provide objective analysis and understanding of how the economy functions.
Question : Which of the following is not a function of the RBI?
Option 1: Issuing currency notes
Option 2: Regulating the banking system
Option 3: Conducting monetary policy
Option 4: Regulating the stock market
Correct Answer: Regulating the stock market
Solution : The correct answer is (d) Regulating the stock market.
Regulating the stock market is not a function of the Reserve Bank of India (RBI). The RBI's primary functions include issuing currency notes, regulating the banking system, and conducting monetary policy. It is responsible for maintaining price stability, controlling inflation, and managing the overall monetary and financial stability of the country. The regulation of the stock market falls under the jurisdiction of the Securities and Exchange Board of India (SEBI), which is an independent regulatory body specifically established for this purpose. Therefore, option d. Regulating the stock market is not a function of the RBI.
Question : Which of the following institutions regulates and supervises the functioning of non-banking financial companies (NBFCs) in India?
Option 1: Reserve Bank of India (RBI)
Option 2: Insurance Regulatory and Development Authority of India (IRDAI)
Option 3: Securities and Exchange Board of India (SEBI)
Option 4: None of the above
Correct Answer: Reserve Bank of India (RBI)
Solution : The correct answer is (a). Reserve Bank of India (RBI).
The Reserve Bank of India is the regulatory authority responsible for regulating and supervising the functioning of non-banking financial companies (NBFCs) in India. NBFCs are financial institutions that provide various financial services, such as loans, credit facilities, investments, and asset financing, but do not hold a full banking license. The RBI regulates and supervises NBFCs to ensure their stability, compliance with regulations, and protection of the interests of depositors and borrowers. The Insurance Regulatory and Development Authority of India (IRDAI) regulates and supervises insurance companies, while the Securities and Exchange Board of India (SEBI) oversees the securities market in India.
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. 2.
Option 1: lay
Option 2: disturb
Option 3: transmit
Option 4: communicate
Correct Answer: transmit
Solution : The most appropriate choice is the third option.
The word transmit means to broadcast or send out an electrical signal and fits well in the context of technology that uses light signals to send or convey data.
Question : What is a good indicator to identify the effect of policies on the industrial sector?
Option 1: Rise in capital formation.
Option 2: Rise in the share of the Industry sector in the GDP.
Option 3: Rise in banking services.
Option 4: Rise in imports.
Correct Answer: Rise in the share of the Industry sector in the GDP.
Solution : The correct option is the Rise in the share of the industry sector in the GDP.
A rise in the share of the industrial sector in GDP is a good indicator of policy effects. It signifies increased industrial output, investments, and economic growth, reflecting the sector's robustness. Policymakers often use this metric to assess the success of policies aimed at promoting industrial development and overall economic progress.
Question : Which of the following is not a function of a stock exchange?
Option 1: Facilitating trading of securities
Option 2: Ensuring fair and transparent transactions
Option 3: Regulating the banking sector
Option 4: Providing liquidity to investors
Correct Answer: Regulating the banking sector
Solution : The correct answer is (c) Regulating the banking sector.
Regulating the banking sector is not a function of a stock exchange. Stock exchanges primarily serve as marketplaces where securities such as stocks, bonds, and derivatives are bought and sold. They facilitate the trading of securities between buyers and sellers.
However, regulating the banking sector is typically the responsibility of regulatory bodies such as central banks and financial regulatory authorities. These entities oversee and regulate banks, ensuring their compliance with banking laws, capital requirements, and prudential regulations.
