21 August Static Quiz 2021
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21 August Static Quiz 2021 for UPSC Prelims
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- Question 1 of 5
1. Question
Stagflation can lead to which of the following in the economy?
1. Poor economic growth
2. High level of unemployment
3. Low level of inflation
Select the correct answer using the code given below.CorrectAnswer: A
Stagflation is a time of economic stagnation combined with inflation. This type of inflation can lead to
economic adversity: combining poor economic growth, high unemployment, and high inflation rate all
in one.IncorrectAnswer: A
Stagflation is a time of economic stagnation combined with inflation. This type of inflation can lead to
economic adversity: combining poor economic growth, high unemployment, and high inflation rate all
in one. - Question 2 of 5
2. Question
Which of the following most appropriately explains the concept of Wholesale Banking?
CorrectAnswer: B
IncorrectAnswer: B
- Question 3 of 5
3. Question
Consider the following statements about Foreign Portfolio Investor (FPI):
1. Any portfolio investment beyond 10 % of the equity of Indian company is treated as FPI.
2. They cannot invest in government securities.
Which of the statement given above is/are correct?CorrectAnswer: D
• Statement 1 is not correct: In India, the term ―Foreign Portfolio Investor‖ refers to FIIs or their sub-
accounts, or qualified foreign investors (QFIs) who are permitted to hold upto 10% stake in a company.
• Portfolio Investment by any single investor or investor group cannot exceed 10% of the equity of an
Indian company, beyond which it will now be treated as FDI.
• Statement 2 is not correct: FPIs are permitted to invest in Government Securities with a minimum
residual maturity of one year. However, FPIs have been prohibited from investing in T-Bills.IncorrectAnswer: D
• Statement 1 is not correct: In India, the term ―Foreign Portfolio Investor‖ refers to FIIs or their sub-
accounts, or qualified foreign investors (QFIs) who are permitted to hold upto 10% stake in a company.
• Portfolio Investment by any single investor or investor group cannot exceed 10% of the equity of an
Indian company, beyond which it will now be treated as FDI.
• Statement 2 is not correct: FPIs are permitted to invest in Government Securities with a minimum
residual maturity of one year. However, FPIs have been prohibited from investing in T-Bills. - Question 4 of 5
4. Question
With reference to debentures, consider the following statements:
1. A debenture is a bond with no collateral or assets backing the debt.
2. Debentures investors enjoy right to vote for members of the board of directors and financial issues affecting the company.
Which of the statements given above is/are correct?CorrectAnswer: A
Statement 2 is not correct: Shareholders are entitled to certain rights which are not assigned to debenture
holders/bondholders. Stockholders of common shares have a right to vote for members of the board of
directors and financial issues affecting the company.IncorrectAnswer: A
Statement 2 is not correct: Shareholders are entitled to certain rights which are not assigned to debenture
holders/bondholders. Stockholders of common shares have a right to vote for members of the board of
directors and financial issues affecting the company. - Question 5 of 5
5. Question
As per the presently followed system, Gross National Which among the following form a part of revenue expenditure?
1. Interest Payments
2. Subsidies
3. Pensions
4. Salaries
Select the correct answer using the code given below.CorrectAnswer: D
IncorrectAnswer: D
