Q110. Regarding Treasury Bills, which statements are correct?
(1) RBI manages central but not state securities.
(2) Treasury Bills are issued by the Union Government, not states.
(3) They are ordinarily sold at a discount.
[UPSC CSE Prelims 2018]
A. 1 and 2 only
B. 3 only
C. 2 and 3 only
D. All three
Answer: (C) 2 and 3 only
Explanation: RBI manages debt for both Union and state governments, while Treasury Bills are short-term securities of the Union Government. They are normally issued below face value and redeemed at par. State borrowing instead commonly uses State Development Loans.
Q109. Is BHIM able to send funds to UPI-linked accounts and does it require fewer authentication factors than chip-and-PIN cards?
[UPSC CSE Prelims 2018]
A. It supports UPI transfers; both normally use two factors
B. Neither assertion is correct
C. Both systems use four factors
D. BHIM is a securities trading application
Answer: (A) It supports UPI transfers; both normally use two factors
Explanation: BHIM supports bank-to-bank payments through UPI identifiers. Card-and-PIN and app-and-UPI-PIN arrangements both ordinarily use possession and knowledge factors. The assertion that chip-and-PIN cards necessarily demand four authentication factors is incorrect.
Q108. For government public-bank reforms, which of these occurred: merger of SBI associate banks into SBI?
[UPSC CSE Prelims 2018]
A. No consolidation took place
B. Associate banks merged into State Bank of India
C. All banks were made wholly private
D. All banks were absorbed into RBI
Answer: (B) Associate banks merged into State Bank of India
Explanation: The merger of SBI associate banks with the parent State Bank of India took effect in 2017. The move consolidated operations, scale and networks, without placing ordinary commercial banking inside the central bank or privatising the sector.
Q107. Under the historical CBLO framework, which financial-market segment included collateralised borrowing and lending obligations?
[WBCS Mains 2018]
A. Money market
B. Foreign-exchange spot market
C. Equity capital market
D. Long-term project finance
Answer: (A) Money market
Explanation: The CBLO arrangement was designed for short-term secured borrowing and lending against eligible collateral. Its maturity and liquidity-management function made it a money-market instrument rather than a long-term capital-market security.
Q106. Who is the primary securities regulator for Indian exchanges and mutual funds?
[WBCS Mains 2018]
A. Reserve Bank of India
B. Ministry of Housing
C. SEBI
D. Financial Services Institutions Bureau
Answer: (C) SEBI
Explanation: SEBI regulates the conduct of securities exchanges, brokers, mutual funds and many capital-market intermediaries. RBI has a separate central-banking mandate, although regulation of particular financial products can involve coordination between authorities.
Q105. Which regulator reviewed the advisory panel concerned with alternative-investment arrangements?
[WBCS Mains 2018]
A. Reserve Bank of India
B. Insurance regulator
C. SEBI
D. Pension regulator
Answer: (C) SEBI
Explanation: Alternative Investment Funds are governed by regulations issued by SEBI. The securities regulator reviews expert recommendations concerning these investment vehicles, including their registration, investment permissions and investor safeguards.
Q104. Which Indian exchange is historically the oldest organised stock exchange?
[WBCS Mains 2018]
A. Bombay Stock Exchange
B. Ahmedabad Stock Exchange
C. Bengaluru Stock Exchange
D. Hyderabad Stock Exchange
Answer: (A) Bombay Stock Exchange
Explanation: BSE developed from the oldest organised share-broking association in India. It became a key institution for securities trading, and its history predates the launch of the modern electronic National Stock Exchange.
Q103. Collateralised Borrowing and Lending Obligation (CBLO) was associated with which financial-market segment?
[WBCS Mains 2018]
A. Capital-market equity issues
B. Money market
C. Overseas property market
D. Commodity spot market only
Answer: (B) Money market
Explanation: CBLO was a collateral-backed short-term money-market borrowing and lending arrangement. It facilitated secured overnight and term liquidity management before being replaced in practice by the tri-party repo framework.
Q102. Which official committee is associated with the development of universal banking in India?
[WBCS Mains 2018]
A. H. R. Khan Committee
B. Abid Hussain Committee
C. M. S. Swaminathan Committee
D. Shah Commission
Answer: (A) H. R. Khan Committee
Explanation: Recommendations associated with H. R. Khan helped shape discussion and transition toward universal banking, which combines a broader range of banking and financial services within an institution subject to applicable safeguards.
Q101. The recommendations of the Narasimham committees mainly addressed reforms in which sector?
[WBCS Mains 2018]
A. Banking and the financial system
B. Civil aviation
C. Public education
D. Food processing
Answer: (A) Banking and the financial system
Explanation: The Narasimham reports examined Indian banking and financial-system reforms. Their recommendations covered prudential norms, capital adequacy, competition, asset quality and institutional restructuring, helping guide the post-1991 reform agenda.
