SEBI Grade A (General Stream) Mock Test - 1 - Bank Exams MCQ

The correct answer is Copilot+ PCs

In News

• Microsoft introduced a new category of personal computers called “Copilot+” PCs, which integrate advanced AI features.
• The PCs will be manufactured and sold by various companies, including Acer and Asustek Computer.
• Standalone AI Processing: The new PCs can handle more AI tasks without relying on cloud data centers.
• "Recall" Feature: This function tracks all activities on the computer, from web browsing to voice chats, allowing users to search and retrieve past actions.
• Voice Assistant Integration: Demonstrations included the Copilot voice assistant acting as a real-time virtual coach for games like “Minecraft.”
• Microsoft expects 50 million AI PCs to be sold in the next year, which could account for about one-fifth of all PC sales, given last year’s global shipment of 242 million PCs.

The correct answer is Spain

In News

• Spain became the 99th member of the International Solar Alliance (ISA), as confirmed during a meeting between Spain's Ambassador to India, Jose Maria Ridao Dominguez, and the Head of Depository, Joint Secretary (ED and MER), Ministry of External Affairs (MEA), Abhishek Singh, in New Delhi on May 22, 2024.

Key Points

• India and France jointly launched the ISA during the COP21 in Paris. The ISA aims to facilitate the rapid deployment of solar energy to help implement the Paris Climate Agreement.
• The ISA is designed as a collaborative platform to increase the deployment of solar energy technologies, enhancing energy access, ensuring energy security, and driving the energy transition.
• On May 22, 2024, Spain became the 99th member of the ISA by handing over the Instrument of Ratification during a formal meeting in New Delhi.
• Panama officially became the 97th member earlier in March 2024.
• Currently, 116 countries are signatories to the ISA Framework Agreement, with 94 having submitted the instruments of ratification to become full members.
• The Sixth Assembly of the ISA was held in New Delhi from October 30 to November 2, 2023.

The correct answer is option 3.

In News

• The Hindu: With China out, Indian firm to build Sri Lanka power project.

Key Points
Nainativu, Neduntheevu, and Analaitivu:

• The places known as Nainativu, Neduntheevu (also known as Delft Island), and Analaitivu are islands. They are specifically located in the Palk Strait, between India and Sri Lanka. Hence option 3 is the correct answer.
• Nainativu, Neduntheevu (Delft Island), and Analaitivu are part of the Jaffna district in the Northern Province of Sri Lanka. Each of these islands carries its unique characteristics and historical significance.
  • Nainativu: This small but culturally significant island is renowned for its religious sites, including the ancient Hindu temple, Nagapooshani Amman Temple, and a Buddhist shrine, the Nagadeepa Purana Vihara. It draws pilgrims from both the Hindu and Buddhist communities. The island's history is rich with legends and its religious sites are said to be linked to the Ramayana, an ancient Indian epic.
  • Neduntheevu (Delft Island): Delft Island is the largest of these islands and is known for its unique landscape featuring coral and limestone, wild horses that roam freely, baobab trees, and remnants of its colonial past. The island was named by the Dutch colonizers and contains ruins from the Dutch colonial era as well as ancient Chola and Pandyan remains.
  • Analaitivu: Smaller than Nainativu and Delft, Analaitivu is inhabited mainly by fishing communities. It is known for its serene and unspoiled natural beauty, with sandy beaches and clear waters. The island's way of life is closely tied to the sea, with fishing and related activities being the main livelihood.
• The geographical locations of these islands in the Palk Strait make them strategically significant, and they embody rich cultural tapestries, stemming from their historical involvement with various local and colonial powers.
• Each island, with its distinct environmental and cultural features, contributes to the diverse heritage of the Northern Province of Sri Lanka.

• International Day for Biological Diversity: 22nd May.

• The theme for the International Day for Biological Diversity 2024 is "Be Part of the Plan."
• This theme emphasizes the collective effort required from governments, indigenous peoples, local communities, NGOs, lawmakers, businesses, and individuals.
• It encourages these groups to demonstrate their support and actions toward implementing the Biodiversity Plan.
• The chosen theme highlights the importance of collaborative action in preserving biodiversity, which supports ecosystems that are crucial for human well-being and the health of our planet.
• The International Day for Biological Diversity was established by the Second Committee of the UN General Assembly in 1993.
• The International Day for Biological Diversity is aligned with the UN Post-2015 Development Agenda's Sustainable Development Goals, addressing a broad range of global issues.
• May 22 commemorates the adoption of the Convention at the Rio de Janeiro Earth Summit in 1992.

The correct answer is Skyroot Aerospace

In News

• Skyroot Aerospace, a Hyderabad-based space technology company, successfully test-fired Stage-2 of its Vikram-1 orbital rocket, known as Kalam-250.

Key Points

• The test took place at ISRO’s propulsion testbed in Sriharikota.
• This achievement is a significant milestone towards India’s first private orbital rocket launch, following Skyroot’s suborbital space launch of the Vikram-S in November 2022.
• The 85-second test recorded a peak sea-level thrust of 186 kilonewtons (kN), expected to be around 235kN during flight.
• The Kalam-250 rocket features a high-strength carbon composite rocket motor using solid fuel and an Ethylene-Propylene-Diene terpolymers (EPDM) thermal protection system (TPS).
• It includes a carbon ablative flex nozzle and electro-mechanical actuators for thrust vector control, crucial for achieving the desired trajectory during ascent.

The correct answer is hostility.

Key Points

• The given passage is about Indian Financial System.
• The given word backing means help or support.
• In option 5, hostility means unfriendliness or opposition.
• So, '​hostility' is the most appropriate antonym.

Additional Information

Let us see the meanings of the other words:

The correct answer is 'looked down'

Key Points

• The correct phrasal verb to fit the blank is ‘look down’ which means to degrade someone.
• Let's understand the meaning of other options:
  • ‘Look up’ means to seek out something. Eg: The translation process amounted to little more than looking up words in bilingual dictionaries.
  • ‘Look into’ means to investigate something. Eg: The police are looking into the murder of the duchess.
  • ‘Look after’ means to take care of someone. Eg: The housekeeper looks after the house in his absence.
  • 'Look out' means to be careful, to be alert. Eg: A man's gotta look out for his family.
• Hence, the correct answer is option 1.​

The correct sentence is: I wasn't successful, so they looked down on me.

The correct answer is 'C.'

Key Points

• The correct sequence of the segments after rearrangement is AECBD.
  • The sentence 'A' is independent of any other sentence as it introduces the topic of ''The discovery of cosmic microwave background radiation.'' Hence, 'A' is the first part.
  • Sentence E will come after A as it is giving information about when and who discovered cosmic background radiation i.e. in 1964 by US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson.
  • Sentence C will come after E as it gives further information about where and when cosmic background radiation was accepted or needed.
  • Sentence B will come after C as it is talking about a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941.
  • The sentence 'D' is the concluding or final part as it concludes by saying that the significance of the measurement of the cosmic background radiation by Andrew McKellar was understood later after the Penzias and Wilson measurements.

Hence, the correct answer is option 2.

Paragraph after rearranging the sentences: The discovery of cosmic microwave background radiation constitutes a major development in modern physical cosmology. In 1964, US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson discovered the CMB, estimating its temperature as 3.5 K, as they experimented with the Holmdel Horn Antenna. The new measurements were accepted as important evidence for a hot early Universe and as evidence against the rival steady-state theory as theoretical work around 1950 showed the need for a CMB for consistency with the simplest relativistic universe models. There had been a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941 at an effective temperature of 2.3 K using CN stellar absorption lines observed by W. S. Adams. Although no reference to the CMB is made by McKellar, it was not until much later after the Penzias and Wilson measurements that the significance of this measurement was understood.

Hint

• Important Rules to Solve the Para Jumbles:
  • Read the sentences attentively and try to comprehend the idea or theme of the sentence and eliminate the irrelevant options.
  • Try to identify the opening (independent sentence) and closing sentences (concluding sentence).
  • Try to identify the mandatory pairs. Two sentences can be connected through various connectors and other determinants.

The correct answer is 'E.'

Key Points

• The correct sequence of the segments after rearrangement is AECBD.
  • The sentence 'A' is independent of any other sentence as it introduces the topic of ''The discovery of cosmic microwave background radiation.'' Hence, 'A' is the first part.
  • Sentence E will come after A as it is giving information about when and who discovered cosmic background radiation i.e. in 1964 by US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson.
  • Sentence C will come after E as it gives further information about where and when cosmic background radiation was accepted or needed.
  • Sentence B will come after C as it is talking about a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941.
  • The sentence 'D' is the concluding or final part as it concludes by saying that the significance of the measurement of the cosmic background radiation by Andrew McKellar was understood later after the Penzias and Wilson measurements.

Hence, the correct answer is option 4.

Paragraph after rearranging the sentences: The discovery of cosmic microwave background radiation constitutes a major development in modern physical cosmology. In 1964, US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson discovered the CMB, estimating its temperature as 3.5 K, as they experimented with the Holmdel Horn Antenna. The new measurements were accepted as important evidence for a hot early Universe and as evidence against the rival steady-state theory as theoretical work around 1950 showed the need for a CMB for consistency with the simplest relativistic universe models. There had been a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941 at an effective temperature of 2.3 K using CN stellar absorption lines observed by W. S. Adams. Although no reference to the CMB is made by McKellar, it was not until much later after the Penzias and Wilson measurements that the significance of this measurement was understood.

The correct option is 4 i.e. B-D

Key Points

We can look at the given sentence in the following way:

It was a bright, beautiful, warm _________ (A)when our ship spread her _________ (B) to the breeze, and _________(C) for the regions of the _________ (D)

• south: it is one of the four directions.
• her south is a wrong phrase
• Because her is a pronoun used for a ship that is previously mentioned in the sentence
• canvas: here, a ship canvas, means a large piece of fabric (usually canvas fabric) by means of which wind is used to propel a sailing vessel
• the canvas is part of the ship structure
• Therefore her(Ship's) canvas is contextually correct.
• Therefore, B and D should be interchanged
• sailed: to travel across the water in a boat or ship

​Therefore the correct sentence is,

It was a bright, beautiful, warm day when our ship spread her canvas to the breeze, and sailed for the regions of the south.

Solution :

The series follows the following pattern :

⇒2³ = 8

⇒4² = 16

⇒6³ = 216

⇒8² = 64

⇒10³ = 1000

⇒12² = 144

⇒ The wrong term in the series will be 146 .

Hence 146 is the correct answer.

Solution :

The series follows the following pattern :

⇒14+2² = 18

⇒18+3³ = 45

⇒45+4² = 61

⇒61+5³ = 186

⇒186+6² = 222

⇒ The wrong term in the series will be 183 .

Hence 183 is the correct answer.

Given:

Principle = 20000

Rate of interest = 10%

Time = 2 years

Formula used:

Amount = P (1 + r/100)ⁿ

P = principle, r = rate of interest, n = number of times interest is credited

Calculations:

In yearly basis,

Amount = 20000 (1 + 10/100)² = 24200

∴ Interest = 24200 – 20000 = 4200

In half yearly basis,

Interest rate for 6 months = 10/2 = 5%

Number of terms = 4

Amount = 20000 (1 + 5/100)⁴ = 24310.125

∴ Interest = 24310.125 – 20000 = 4310.125

∴ Required difference = (4310.125 - 4200) = 110.125

Sum of total number of table = 800 + 700 + 900 + 600 = 3000

Sum of total number of chair = 450 + 1200 + 250 + 1000 = 2900

∴ Required average = ( 3000 + 2900 ) / 2 = 2950

1. The train with Wiring is delivered four days before the train H which is delivered two days after the train with Insulation.

2. The train | delivered immediately before the train with Insulation. The leave is planned on the day before the delivery of the train H and after the train I.

3. The train J, which is not delivered after leave, delivers immediately after the delivery of the train with Lumber which is not delivered after the train with Wiring. Hence, case 1 gets eliminated.

4. The train G delivers three days before the train K which is not delivered on the last day of the week. Hence, case 3 gets eliminated.

5. The train with Gravel is delivered immediately before the train with Glass. Hence, Case 3a gets eliminated.

Final arrangement

Glass material is delivered on the last day of the week

Given Statement:  F > L ≥ Y = U > W > T ≥ A ≥ S > D < O ≤ I ≤ Z < E > H > P

Conclusions:

I. F ≥ A → False (As, F > L ≥ Y = U > W > T ≥ A, is given which means F > A, in between signs of ≥, >, priority is given to sign >)

II. Y > D → True, (As, Y = U > W > T ≥ A ≥ S > D → Y > D)

III. P > O → False (As, definite relationship between the two cannot be determined).

IV. E > D → True (As,  D < O ≤ I ≤ Z < E → D < E)

Hence, Both Conclusion II and IV is True.

Forward Pairs - NS, IN

Backward Pairs - IM, NO

Thus, there are four such pairs of letters in the word “TRANSMISSION” which have as many letters between them as in the English alphabetical series (both in forward and backward directions).

Hence, the correct answer is Four.

Given:

Eight persons: P, Q, R, S, T, U, V, and W

1) Only three persons are designated between Q and S, where S is junior to Q.

2) V is two posts senior to Q.

3) Only one person is designated between U and W.

4) As many persons senior to U is same as the persons junior to V.

5) Neither R nor P is the Principal.

6) P is three posts junior to T but is not HOD. U is senior to S.

After arranging as per 5th and 6th point, the case - 1 gets eliminated.

So, the final arrangement is:

Hence, 'Four' persons are designated between R and P.

Given:

We use the following symbols to denote the relation between parties:

1. The father-in-law of S, who is married to the son of U, has 2 grandchildren of the same gender.

2. X is the sister of R, who is the son of O.

3. R has 2 daughters.

4. Q is married to W.

5. T is the sister-in-law of P, who is married to V.

6. U is the mother of X.

7. Q is the father of S.

Combining all of them together, we get:

V is the wife of P.

Hence, R is the father of V.

The correct answer is Forward

Key Points

• Forward contracts are customized agreements traded over-the-counter (OTC).
• They are typically used for hedging or speculation.
• Unlike futures contracts, forwards are not standardized and are settled at the end of the contract.
• Forwards carry counterparty risk as they are not traded on exchanges.

Additional Information

• Option Contracts
  • Give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price before or at expiration.
• Swap Contracts
  • Involve exchanging cash flows or other financial instruments between parties.
• Warrant Contracts
  • Give the holder the right to purchase the company's stock at a specific price before expiration.
• Convertible Bonds
  • Are bonds that can be converted into a predetermined number of the issuing company's equity shares.

The correct answer is Must be a relative of a director or key managerial personnel.

Key Points

• Independent directors must have expertise in finance, law, management, or administration to contribute effectively to the board.
• They must not have any pecuniary relationship with the company, ensuring their independence and impartiality.
• Independent directors must be appointed through a transparent selection process to maintain fairness and integrity.
• They are typically included in various board committees, such as the audit committee, to provide independent oversight.
• Being a relative of a director or key managerial personnel would compromise their independence and is not allowed.

Additional Information

• Expertise Requirement
  • Independent directors must possess relevant expertise in finance, law, management, or administration.
• Pecuniary Relationship
  • Independent directors must not have any financial relationship with the company that could affect their impartiality.
• Transparent Selection
  • Independent directors are appointed through a transparent process to ensure fairness and credibility.
• Board Committees
  • Independent directors often serve on key board committees to provide independent oversight and governance.
• Relatives
  • Independent directors must not be related to directors or key managerial personnel to maintain independence.

The correct answer is The risk and rewards of ownership are transferred

Key Points

• Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer.
• This usually coincides with the delivery of goods.
• Dispatching goods, receiving payment, and producing goods are not the primary criteria for revenue recognition.
• Orders placed by customers do not constitute revenue until the transfer of ownership occurs.

Additional Information

• Goods Dispatched
  • Goods are dispatched to customers as part of the delivery process, but this alone does not signify revenue recognition.
• Payment Received
  • Receiving payment is important for cash flow but is not the criteria for recognizing revenue.
• Goods Produced
  • Production of goods is part of the manufacturing process and does not determine revenue recognition.
• Order Placed
  • Placing an order is the beginning of a transaction but does not determine revenue recognition.

The correct answer is Break-even Analysis

Key Points

• Break-even Analysis determines the sales volume at which total revenues equal total costs, resulting in no profit or loss.
• Cost Allocation involves distributing indirect costs to different cost centers or products.
• Variance Analysis examines the differences between planned and actual performance to identify areas for improvement.
• Budgeting is the process of planning future business activities and allocating resources accordingly.
• Overhead Absorption involves assigning indirect costs to products or cost centers based on predetermined rates.

The correct answer is Dividends from public sector enterprises

Key Points

• Non-tax sources of revenue include dividends, profits from public enterprises, fees, fines, and grants.
• Income tax, corporate tax, and customs duty are all forms of direct and indirect taxes.
• GST is an indirect tax levied on the supply of goods and services.
• Non-tax revenue sources provide additional income to the government beyond taxation.

Additional Information

• Income Tax
  • A direct tax levied on individual earnings.
• Corporate Tax
  • A direct tax levied on corporate profits.
• Customs Duty
  • Indirect tax levied on imports and exports.
• Goods and Services Tax (GST)
  • Indirect tax levied on the supply of goods and services.

The correct answer is Ensure fiscal discipline

Key Points

• The FRBM Act aims to reduce fiscal deficits and ensure long-term macroeconomic stability.
• It mandates the government to follow prudent fiscal policies and manage public funds responsibly.
• The Act sets targets for fiscal deficit and debt management.
• It promotes transparency in fiscal operations and accountability in government spending.

Additional Information

• Government Spending
  • Increasing government spending can stimulate economic growth but is not the primary focus of the FRBM Act.
• Tax Collection Efficiency
  • Enhancing tax collection efficiency helps increase government revenue but is not the main goal of the FRBM Act.
• Social Welfare Programs
  • Promoting social welfare programs is important for inclusive growth but is not the primary focus of the FRBM Act.
• Inflation Control
  • Controlling inflation is a goal of monetary policy rather than the FRBM Act.

The correct answer is Variance

Key Points

• Variance analysis helps in identifying the reasons for differences between standard costs and actual costs.
• Margin refers to the difference between sales revenue and cost of goods sold.
• Overhead includes indirect costs associated with production.
• Contribution refers to the difference between sales revenue and variable costs.
• Absorption costing includes all manufacturing costs, both fixed and variable, in the cost of a product.

Additional Information

• Variance
  • A variance is the difference between a standard cost and the actual cost, analyzed to understand the reasons for the deviation.
• Margin
  • The difference between sales revenue and cost of goods sold, representing the gross profit.
• Overhead
  • Indirect costs associated with production, such as utilities, rent, and administrative expenses.
• Contribution
  • The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and profit.
• Absorption Costing
  • Includes all manufacturing costs, both fixed and variable, in the cost of a product.

The correct answer is Providing insurance coverage to depositors

Key Points

• SEBI regulates the securities market and protects investor interests.
• SEBI promotes and regulates self-regulatory organizations within the securities market.
• SEBI has the authority to prohibit insider trading to ensure market integrity.
• Insurance coverage to depositors is provided by the DICGC, not SEBI.

Additional Information

• SEBI Functions
  • Regulating the business in stock exchanges.
  • Protecting the interests of investors in securities.
  • Promoting and regulating self-regulatory organizations.
  • Prohibiting insider trading in securities.
• DICGC Functions
  • Providing insurance coverage to depositors.
  • Ensuring credit guarantee to depositors in banks.

The correct answer is 1 and 2 only.

In News

• The IS curve represents equilibrium in the goods market, and the LM curve represents equilibrium in the money market.

Key Points

• The IS curve shows combinations of interest rates and output where the goods market is in equilibrium.
• The LM curve shows combinations of interest rates and output where the money market is in equilibrium.
• The intersection of the IS and LM curves determines the equilibrium level of income and interest rates, not the general price level.
• The intersection of the IS and LM curves determines the equilibrium level of income and interest rates, not the general price level.

The correct answer is INR 10 crore

Key Points

• Chapter XII mandates the constitution of an Audit Committee for companies with significant paid-up capital to ensure proper financial oversight.
• The Audit Committee is responsible for overseeing the financial reporting process, internal controls, and audit functions.
• The threshold for constituting an Audit Committee is set at a paid-up capital of INR 10 crore or more.
• This requirement aims to enhance corporate governance and accountability in companies with substantial financial resources.

Additional Information

• Audit Committee
  • A committee is responsible for overseeing the company's financial reporting, internal controls, and audit functions.
• Threshold Requirement
  • The requirement to constitute an Audit Committee applies to companies with a paid-up capital of INR 10 crore or more.
• Corporate Governance
  • Enhanced corporate governance practices are promoted through the establishment of an Audit Committee.

The correct answer is Equity Shares

Key Points

• The money market deals with short-term borrowing and lending, typically up to one year.
• Treasury Bills, Certificates of Deposit, Commercial Paper, and Repurchase Agreements are common money market instruments.
• Equity Shares represent ownership in a company and are traded in the stock market.

Additional Information

• Money Market Instruments
  • Treasury Bills: Short-term government securities.
  • Certificates of Deposit: Issued by banks with fixed interest rates.
  • Commercial Paper: Unsecured short-term debt issued by corporations.
  • Repurchase Agreements: Short-term borrowing agreements where securities are sold and later repurchased.
• Equity Shares
  • Represent ownership in a company and are traded in the stock market.