Capital Market PYQs — 15 UPSC CSE Previous Year Questions

Question 1

Which of the following statements about Crowdfunding is/are correct? Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project. Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures. Select the answer using the code given below:

Accepted Answer

C. Both 1 and 2

Question 2

With reference to investments, consider the following : Bonds Hedge Funds Stocks Venture Capital How many of the above are treated as Alternative Investment Funds?

Accepted Answer

B. Only two

Question 3

Consider the following statements : Statement I : As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II : Bondholders are lenders to a company whereas stockholders are its owners. Statement III : For repayment purpose, bondholders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

Accepted Answer

A. Both Statement II and Statement III are correct and both of them explain Statement I

Question 4

Consider the following markets : Government Bond Market Call Money Market Treasury Bill Market Stock Market How many of the above are included in capital markets?

Accepted Answer

B. Only two

Question 5

In the context of finance, the term 'beta' refers to

Accepted Answer

D. a numeric value that measures the fluctuations of a stock to changes in the overall stock market

Question 6

With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct ? Acquiring new technology is capital expenditure. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure. Select the correct answer using the code given below :

Accepted Answer

A. 1 only

Question 7

What does venture capital mean?

Accepted Answer

B. A long-term start-up capital provided to new entrepreneurs

Question 8

In the parlance of financial investments, the term 'bear' denotes:

Accepted Answer

A. An investor who feels that the price of a particular security is going to fall

Question 9

Which one of the following pairs is not correctly matched?

Accepted Answer

B. Singapore: Shcomp

Question 10

Consider the following statements:

Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE).
For calculating the Sensex, all the stocks are assigned proportional weightage.
New York Stock Exchange is the oldest stock exchange in the world.

Which of the statements given above is/are correct?

Accepted Answer

A. 2 only

Question 11

A rise in ‘SENSEX’ means

Accepted Answer

C. an overall rise in pric es of shares of group of companies registered with Bombay Stock Exchange

Question 12

The upper part of the graph is a hypothetical movement in the BSE Sensex over a few months and the lower part is the fluctuation in the average value of automobile shares in the same period (actual values not given). Which one of the following inferences can be drawn from the graphs ?

Accepted Answer

C. Automobile shares have shown a steady improvement in price, unaffected by large fluctuations in BSE Sensex

Question 13

Gilt-edged market means

Accepted Answer

B. market of Government securities

Question 14

From the balance sheet of a company, it is possible to:

Accepted Answer

C. Determine the size and composition of the assets and liabilities of the company

Question 15

Which of the following pairs are correctly matched? 1. Dow Jones : New York 2. Hang Seng : Seoul 3. FTSE-100 : London Codes:

Accepted Answer

D. 1 & 3


1.	Dow Jones : New York
2.	Hang Seng : Seoul
3.	FTSE-100 : London