Planning
Question : What was a key focus of the Sixth Five-year Plan in India after the suspension of the planning process?
Option 1: Rapid industrialization
Option 2: Agricultural reform
Option 3: Poverty alleviation
Option 4: Technological innovation
Correct Answer: Poverty alleviation
Solution : After the suspension of the planning process, the Sixth Five-year Plan in India focused on poverty alleviation, aiming to improve the living standards of the country's poorest citizens.
Question : Case Study: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
Questions : Debentures and Financial Instruments
What is the primary difference between debentures and equity shares?
Option 1: Debentures provide ownership rights
Option 2: Equity shares pay fixed interest
Option 3: Debentures are issued to employees only
Option 4: Equity shares require repayment at maturit
Correct Answer: Debentures provide ownership rights
Solution : The correct answer is (a) Debentures provide ownership rights
Debentures represent a form of debt where the holders (debenture holders) are creditors to the company and do not possess ownership rights in the company. They are entitled to receive a fixed rate of interest and the repayment of the principal amount at maturity.
On the other hand, equity shares represent ownership in the company and provide shareholders with ownership rights, including voting rights and the right to share in the company's profits (through dividends). Unlike debentures, equity shares do not involve fixed interest payments or repayment at maturity.
Question : Case Study 72
OPQ Corporation is a conglomerate planning to trade its shares on a stock exchange. The company's management is reviewing the roles of stockbrokers.
Question :
What type of broker offers advice to clients and executes orders on their behalf?
Option 1: Full-service broker
Option 2: Discount broker
Option 3: Floor broker
Option 4: Specialist broker
Correct Answer: Full-service broker
Solution : The correct answer is (a) Full-service broker
A full-service broker is a type of broker that offers a wide range of services to clients, including investment advice, research, financial planning, and execution of orders on behalf of their clients. They provide personalized assistance and guidance to help clients make informed investment decisions. In addition to executing trades, they often offer comprehensive financial services, portfolio management, and recommendations based on their expertise and analysis of the market. Clients typically pay higher fees or commissions for the additional services and advice provided by full-service brokers.
Question : Which agency of the Indian government conducts the National Sample Survey on employment?
Option 1: Reserve Bank of India (RBI)
Option 2: Ministry of Finance
Option 3: Ministry of Statistics and Programme Implementation
Option 4: Planning Commission of India
Correct Answer: Ministry of Statistics and Programme Implementation
Solution : The correct answer is (c) Ministry of Statistics and Programme Implementation
The National Sample Survey on employment in India is conducted by the Ministry of Statistics and Programme Implementation (MoSPI). MoSPI is responsible for collecting, analyzing, and disseminating official statistical data in India. It conducts various surveys and studies to gather data on a wide range of socio-economic aspects, including employment.
The data collected through the NSS on employment is used for monitoring and evaluating employment trends, labor market conditions, and policy formulation related to employment and labor force development in India. It plays a crucial role in providing insights into the dynamics of the labor market and informing decision-making by policymakers, researchers, and other stakeholders.
Question : Case Study 3:
MNO Inc. is a well-known conglomerate that is planning to diversify its business operations by acquiring other companies.
MNO Inc. is interested in acquiring other companies to diversify its business. Which market activity would be involved in this scenario?
Option 1: Treasury bill trading
Option 2: Commercial paper issuance
Option 3: Mergers and acquisitions
Option 4: Government bond trading
Correct Answer: Mergers and acquisitions
Solution : The correct answer is (c) Mergers and acquisitions
MNO Inc.'s interest in acquiring other companies to diversify its business involves the market activity of mergers and acquisitions (M&A). Mergers and acquisitions refer to the process of combining two or more companies or business entities, typically with the aim of enhancing growth, market share, synergy, or diversification. Mergers and acquisitions play a crucial role in corporate strategy and growth, allowing companies like MNO Inc. to expand into new markets, enter new industries, acquire valuable assets, and achieve strategic objectives.
Question : Case Study 76
DEF Enterprises is a startup planning to trade its shares on a stock exchange. The company's management is considering the importance of opening a demat account.
What is a demat account used to hold in electronic form?
Option 1: Physical share certificates
Option 2: Gold and silver coins
Option 3: Cash and currency notes
Option 4: Securities and investments
Correct Answer: Securities and investments
Solution : The correct answer is (d) Securities and investments
A demat account is used to hold securities and investments in electronic form. These securities can include stocks, bonds, mutual funds, government securities, Exchange Traded Funds (ETFs), and other financial instruments. Opening a demat account allows investors to hold, track, and manage their investment holdings digitally, making it convenient for trading and investment activities. The demat account replaces the need for physical share certificates, converting them into electronic records and providing a secure way to hold various securities.
Question : The Economic Survey of India is prepared by the:
Option 1: Ministry of Finance
Option 2: Reserve Bank of India (RBI)
Option 3: Planning Commission of India
Option 4: Ministry of Commerce and Industry
Correct Answer: Ministry of Finance
Solution : The correct answer is (a) Ministry of Finance
The Economic Survey of India is prepared by the Ministry of Finance. It is an annual document that presents the state of the Indian economy, including an assessment of the current economic situation, key developments, policy recommendations, and future prospects.
The Ministry of Finance is responsible for managing the economic and financial affairs of the country. It formulates and implements fiscal policies, monetary policies, and other economic policies to support sustainable and inclusive economic growth. The Economic Survey is one of the important tools used by the Ministry of Finance to assess and communicate the economic performance and policy priorities of the Indian economy.
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