Q25 · UPSC Prelims 2023 · Set A · Economy

← Q24 Q26 →

Consider the following markets:1.Government Bond Market2.Call Money Market3.Treasury Bill Market4.Stock MarketHow many of the above are included in capital markets?

A Only one
B Only two
C Only three
D All four

Correct answer: (b) Only two

Explanation

  1. A

    Only one

    Only one. Government bonds and equities are both capital-market instruments.

  2. B

    Only two

    Only two. G-sec market and stock market. Call money and T-bills are money market.

  3. C

    Only three

    Only three. Call money and T-bills are short-term, not capital market.

  4. D

    All four

    All four. Money-market legs must be dropped.

Summary. Official key is (b) only two. Capital markets are for long-term funds: government bonds and shares. Call money (overnight) and treasury bills (up to one year) sit in the money market.

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2022 · Q3 · General Studies · 2 marks

    With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct?

    View answer →

  2. 2022 · Q5 · General Studies · 2 marks

    With reference to the Indian economy, what are the advantages of "Inflation-Indexed Bonds (IIBs)"? 1. Government can reduce the coupon rates on its borrowing by way of IIBs. 2. IIBs provide protection to the investors from uncertainty regarding inflation. 3. The interest received as well as capital gains on IIBs are not taxable. Which of the statements given above are correct?

    View answer →

  3. 2021 · Q9 · General Studies · 2 marks

    Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

    View answer →

  4. 2021 · Q13 · General Studies · 2 marks

    With reference to India, consider the following statements: 1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market. 2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India. 3. The 'Central Depository Services Ltd' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?

    View answer →

  5. 2019 · Q67 · General Studies · 2 marks

    Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of Indian stock market without registering themselves directly?

    View answer →

  6. 2018 · Q56 · General Studies · 2 marks

    Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments. 3. Treasury bills are issued at a discount from the par value. Which of the statements given above is/are correct?

    View answer →

  7. 2016 · Q12 · General Studies · 2 marks

    Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below

    View answer →