Practice Static GA Questions and Answers

• Corporate governance involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers,...
• Circuit breaker is a set of rules formed and issued by SEBI in order to bring back normalcy in the stock markets in the event an index or stock enters a ci...
• A privately held company can go with FPO for raising money from the market.
• QIP happens in case of listed companies 
• Preferred stock, are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued 
• As compared to GDR, exchange rate risk is more in FCCB as interest is payable in foreign currency 
• Direct sales of share to selected few in case of unlisted company is called Private Placement 
• FCCB can be accessed under two routes – automatic route and approval route. 
• A Green-shoe option is a special provision in an IPO prospectus, which allows underwriters to sell investors less shares than originally planned by the iss...
• Companies raise ECB because they get subsidy for raising capital from abroad 
• Demutualisation is a process that changes a mutual or co-operative association into a public company 
• Demat accounts are maintained with Depository Participants 
• BSE Indonext consolidates the order-book (in electronic form) of all regional exchanges 
• Shares of large, medium and small caps are traded at BSE Indonext
• P-Notes are instruments issued by registered FII to overseas investors, who wish to invest in the Indian stock markets without registering themselves with ...
• Depository helps in storage, transfer pledging and settlement of securities 
• A retail customer opens demat account with a Depository Participant (DP) 
• NSE is among the promoters of NSDL and BSE is among the promoters of CSDL  
• Reverse Repo is to absorb the liquidity and Repo is to inject the liquidity 
• LAF (Liquidity Adjustment Facility) is the principal tool of monetary policy. 
• Repo facility is to be used in emergency situation when inter-bank liquidity is dried up. 
• The single policy rate now is -
• Which of the following is used for injecting and absorbing liquidity –
• An arrangement between GOI and RBI to mop up the excess liquidity generated on account of higher capital inflows is called –
• RBI withdrew the requirement of incremental CRR after the demonetisation in 2016 by using following tool to absorb the excess liquidity in the system – ...
• A systematic process of generating, capturing, and recording investor demand for shares during an initial public offering (IPO) is called
• Under Green-shoe option what is the maximum percentage of additional shares that it can sell-
• Alternative investments that use pooled funds and employ numerous different strategies to earn active return, or alpha, for their investor are called – ...
• Which of the following is not a method that can be used by an Indian company to raise funds from abroad-
• Which of the following is not a debt instrument -
• Mutual Funds gets funds from large number of retail investors and invest that money in- ...
• Issuance of which of the following does not bring any additional capital to the company?
• The index-based market-wide circuit breaker system does not apply at one of the following movement of the index
• As per the Corporate Governance Norms Directors’ Responsibilities are unlikely to include:
• Which of the following statements is correct A. Depository is an agent of Depository Participant (DP) B. Depository Participants (DPs) are intermediaries...
• Which of the following statements is correct A. Under MSF banks can borrow funds overnight up to 0.5% (50 BPS) of their NDTL B. In MSF (Marginal Standing F...
• Which of the following statements is correct A. Only equity instruments are traded in secondary market B. Only institutions can sell securities in second...
• Which of the following statements is correct A. ADRs/GDRs are considered to be part of FDI, therefore need to conform to the FDI policy B. FIIs are not a...
• Which of the following statements is correct A. A trader does short selling when s/he expects prices of the security to increase B. Short-selling is oppo...
• Which of the following statements is correct A. In Repo transactions banks sell government securities to RBI with a repurchase agreement B. Repo transactio...