SEBI Grade A (General Stream) Mock Test - 4 Free Online Test 2026

• Peru adopted India’s UPI technology for real-time payments.

• UPI (Unified Payment Interface) technology, developed in India, is designed for real-time payment services.
• NPCI International Payments Limited (NIPL), a subsidiary of the National Payments Corporation of India, is promoting UPI technology globally.
• Peru has partnered with NIPL to introduce a UPI-like real-time payments system, marking a significant advancement in Peru's digital payment infrastructure.
• This makes Peru the first South American country to adopt UPI technology, emphasizing its pioneering role in the region's financial digitalization.
• The collaboration aims to enhance the efficiency and reliability of Peru's payment systems, focusing on financial inclusion and reducing dependency on cash.
• The system is intended to serve both individuals and businesses, facilitating instant financial transactions.
• Key figures in this partnership include Gunveer Singh from RBI and Julio Velarde, the Governor of the Central Reserve Bank of Peru (BCRP).

Additional Information

• The implementation of UPI in Peru is expected to bring numerous economic benefits, including increased financial inclusion and lower transaction costs.
• By adopting UPI technology, Peru sets an example for other nations in South America to enhance their payment systems through digital solutions.
• Therefore, the correct answer is Peru, which has adopted the UPI system to modernize and streamline its payment mechanisms.

• Russian cosmonaut Oleg Kononenko became 1st person to spend 1,000 cumulative days in space.

• This record was announced by Russia's space agency, Roscosmos, and marks a historic moment in human spaceflight.
• Kononenko's journey to this record began with his first mission, Expedition 17 to the International Space Station (ISS), which launched in April 2008.
• Over the years, Kononenko has participated in five separate missions to the ISS, accumulating days that contributed to this record.
• His current mission began on September 15, 2023, and is planned to end on September 23, 2024, which will bring his total number of days in space to 1,110.
• This record surpasses the previous record of 878 days set by his colleague, Gennady Padalka.

Additional Information

• Kononenko's commitment to space exploration is driven by his passion for the field, as he mentioned that his motivation to fly into space is not for setting records but for the love of the profession.
• His achievement not only showcases his dedication but also highlights the extensive preparation and endurance required for long-duration space missions.
• Therefore, the correct answer is Oleg Kononenko, whose extraordinary space career has now included spending a cumulative total of 1,000 days aboard the ISS.

The correct answer is 27.

In News

• The Reserve Bank of India (RBI) has come down heavily on asset reconstruction companies (ARCs) for violating norms and warned them of regulatory or supervisory action in extreme cases. RBI Deputy Governor Swaminathan Janakiraman said during onsite inspections, it was found that ARCs allowed themselves to be used as a “conduit to evergreen distressed assets.” There are a total of 27 ARCs registered with the regulator.

Key Points

• The RBI has come down heavily on ARCs for violating norms and warned them of regulatory or supervisory action in extreme cases.
• RBI Deputy Governor Swaminathan Janakiraman emphasized that ARCs were found allowing themselves to be used as conduits to evergreen distressed assets.
• There are a total of 27 ARCs registered with the regulator.
• The RBI urged ARCs to adopt a regulation-plus approach and comply with both the letter and spirit of the regulation.

Additional Information

• RBI's Actions and Observations
  • The RBI barred Edelweiss ARC from acquiring financial assets and security receipts due to material concerns.
  • ARCs were found mostly doing one-time settlements and rescheduling of debt, actions which banks can also do.
  • The RBI emphasized the need for robust governance practices and compliance with regulatory norms.

The correct answer is option 3.

Key Points

• In the third part of the sentence, replace 'little' with 'a little'.
• 'Little' is used in the negative sense and means 'hardly any'
• 'A little' is used in a positive sense and means 'some, though not much'.
• Here, the sentence is conveying a positive meaning by 'not losing hope' so, a positive adjective should be used accordingly which is 'a little'.

Therefore, the correct answer is C.

Correct Sentence: We can't lose hope as the doctor says there is a little hope of his recovery.

Additional Information

• Little - used with uncountable nouns
  • Little - 'hardly any'.
    • For example, 'There is little water in the jug.'
  • A little - 'some, though not much'.
    • For example, 'A little knowledge is a dangerous thing.'
  • The little - 'not much, but all that there is'.
    • For example, 'The little water that is left in the jug would suffice.'
• Few - used with countable nouns
  • Few - 'hardly anyone/anything'.
    • For example,' Few men are free from fault.'
  • A few - 'some, at least'.
    • For example, 'A few boys will pass the examination.'
  • The few - 'not many, but all there is'.
    • For example, 'I have already read the few books you gave me last week.'

The correct answer is 'Option 2'.

Key Points

• The phrase "some retired bureaucrats and businessmen written a letter" is incorrect because "written" is the past participle form, which is used with auxiliary verbs like "have" or "has." In this context, it is used incorrectly.
• The correct past tense form of "write" is "wrote," which should be used to indicate the action completed in the past.
• The sentence talks about a specific event that happened on April 8, and the past simple tense "wrote" is appropriate to describe this completed action.
• The other options either suggest different tenses or do not fit the context of the sentence as accurately as "wrote."

Therefore, the correct answer is Wrote.

Correct Sentence: On April 8, some retired bureaucrats and businessmen wrote a letter to the President of India over the EC’s conduct and credibility in the Lok Sabha elections.

Additional Information

• Could have: This implies a possibility or a hypothetical situation in the past, which does not fit the context of the sentence.
• Has written: This is the present perfect tense, which indicates an action that happened at an unspecified time before now. However, the specific date "April 8" is mentioned, making the past simple "wrote" more appropriate.
• Might have: Similar to "could have," this implies a hypothetical situation or possibility, which is not the intended meaning of the sentence.
• No improvement: The original sentence is incorrect as it uses "written" without an auxiliary verb, so this option is not suitable.

Calculation:

I. x2 + 20x + 36 =0

⇒ x2 + 18x + 2x + 36 = 0

⇒ x(x + 18) + 2(x + 18) =0

⇒ (x + 18) (x + 2)

⇒ x = –18, –2

II. y2 – 20y + 51 = 0

⇒ y2 – 17y – 3y + 51 = 0

⇒ y(y – 17) – 3(y – 17) = 0

⇒ (y – 17) (y – 3) = 0

⇒ y = 17, 3

Comparison between x and y (via tabulation):

∴ x < Y

10.8 seconds

Given:

The speed of the train = 50 km/h

The total length of the train = 100 m

The total length of the platform = 500 m.

Formula Used:

;

where t = time taken by the train to cross the platform,

= length of the platform,

= length of the train,

= velocity of the train.

Conversion of speed from km/h to m/s = velocity in km/h × (5/18)

Calculation:

(2/5)th the length of the platform = (2/5) × 500 = 200 m

Double the initial speed of the train = 2 × 50 km/h = 100 km/h

This speed in m/s = 100 × (5/18) = (250/9) m/s

So the total time to cover the required distance at the new speed = seconds

∴ The time taken by the train to cover (2/5)th the length of the platform at double its initial speed = 10.8 seconds

Solution:

Number of books sold in 2020 = (2020 - 1000) = 1020

Number of poetry books sold in 2020 = (750 - 500) = 250

Number of fiction books sold in 2020 = (1020 - 250) = 770

Similarly, we can calculate the number of books sold in different years.

Clearly in 2019 and 2022 number of fiction books sold are same i.e. 500

Hence, the correct answer is option 1.

Solution:

Number of books sold in 2020 = (2020 - 1000) = 1020

Number of poetry books sold in 2020 = (750 - 500) = 250

Number of fiction books sold in 2020 = (1020 - 250) = 770

Similarly, we can calculate the number of books sold in different years.

Let the number of fiction books sold in 2018 be x, then 125% of x = 500

So, x = 400

Let the number of poetry books sold in 2018 be y, then 250% of y = 500

So, y = 200

Total number of books sold in 2018 = (400 + 200) = 600

Hence, the correct answer is option 4.

Given:-

Persons → Eight

Row 1 → W, X, Y, and Z → Facing South

Row 2 → A, B, C, and D → Facing North

Now,

1) D, who doesn't like Gold, sits second to the right of the one who likes Platinum.

2) The one who likes Diamond faces D.

The possibilities are -

Case I -

Case II -

3) The one who likes Ruby sits to the immediate right of the one who likes Diamond.

4) A sits second to the left of C.

Case I -

Case II -

5) W sits third to the left of the one who likes Silver. This is not possible in Case II so it gets eliminated.

6) Y sits second to the right of Z.

Case I -

7) The one who likes Gold and Pearl are immediate neighbors. This is possible only in Row 2.

8) C neither likes Gold nor Pearl. So, the possibilities exist between A and D only.

But from point 1), D does not like Gold so D likes pearls and A likes gold.

9) The one who likes Gem doesn't sit in Row 2. So, the one who likes Gem sits in Row 1 and the person is W.

The remaining X will sit between Y and Z in Row 1 and the remaining B will sit next to A in Row 2. The remaining item is Sapphire which is liked by C.

The final arrangement is -

Among the given options, all except A are sitting at the extreme ends of the row.

Hence, the correct answer is A.

Given:-

Persons → Eight

Row 1 → W, X, Y, and Z → Facing South

Row 2 → A, B, C, and D → Facing North

Now,

1) D, who doesn't like Gold, sits second to the right of the one who likes Platinum.

2) The one who likes Diamond faces D.

The possibilities are -

Case I -

Case II -

3) The one who likes Ruby sits to the immediate right of the one who likes Diamond.

4) A sits second to the left of C.

Case I -

Case II -

5) W sits third to the left of the one who likes Silver. This is not possible in Case II so it gets eliminated.

6) Y sits second to the right of Z.

Case I -

7) The one who likes Gold and Pearl are immediate neighbors. This is possible only in Row 2.

8) C neither likes Gold nor Pearl. So, the possibilities exist between A and D only.

But from point 1), D does not like Gold so D likes pearls and A likes gold.

9) The one who likes Gem doesn't sit in Row 2. So, the one who likes Gem sits in Row 1 and the person is W.

The remaining X will sit between Y and Z in Row 1 and the remaining B will sit next to A in Row 2. The remaining item is Sapphire which is liked by C.

The final arrangement is -

A and C are the immediate neighbors of the one who likes Pearl.

Hence, the correct answer is AC.

People : Rita, Sarita, Shyam, Raj, Raman and Rahul.

Product : Car, Wardrobe, Washing machine, Sofa set, Curtain and Air purifier

Month : January to June (but not necessarily in the same order).

1) Raj will buy Curtain but not in February.

2) Sarita will neither buy Wardrobe nor Car.

3) One of the people will buy Washing machine in March.

4) Sarita will buy product just immediate after Raj.

5) Rahul will buy product immediate before Raj.

6) Rahul will neither buy Washing machine nor Car.

(So, Rahul will buy Product in April month)

7) Shyam will not buy Washing machine but will buy product immediate after Raman.

(So, Raman will buy Product in January and Shyam will buy Product in February.)

8) Raman will neither buy Car nor Sofa set.

(Hence, Shyam will buy Car.)

9) Rahul will not buy Wardrobe Product. Sofa set was purchased before Air purifier.

If Rahul and Shyam interchange there purchase month then final arrangement will be

Curtain is purchased in the month immediately after the month Shyam purchase the product.

The correct answer is Chapter XXVII.

Key Points

• Chapter XXVII provides frameworks for the restructuring and rehabilitation of financially distressed companies, aiming to facilitate their recovery through organized and strategic measures.
• Chapter II deals with the incorporation of the company & matters incidental thereto.
• Chapter XIII deals with the appointment and remuneration of the Managerial Personnel.
• Chapter IX deals with the accounts of the companies.
• Chapter III deals with the prospectus & allotment of securities.

The correct answer is When payment is received in advance of services rendered.

Key Points

• Deferred revenue, a liability, occurs when a company receives payment for goods or services yet to be delivered or performed.
• When services are rendered in advance of payment: This would result in an accounts receivable.
• When expenses are prepaid: This results in a prepaid expense asset.
• When debts are forgiven: This may affect both revenue recognition and bad debts.
• When assets are depreciated: Relates to the reduction of the carrying amount of fixed assets.

The correct answer is Pareto Efficiency

Key Points

• Pareto Efficiency, a concept from welfare economics, describes a state where it is impossible to make one individual better off without making another individual worse off.
• This principle is used as a benchmark to evaluate the efficiency of economic systems and resource allocations.
• It is often used to assess the effectiveness of public policies in terms of their ability to improve societal welfare without detriment to any community.

Additional Information

• Keynesian Equilibrium
  • Describes a state in an economy where demand equals supply (aggregate demand equals aggregate supply).
• Nash Equilibrium
  • A concept of game theory where each player's strategy is optimal when considering the choices of other players.
• Rational Expectations
  • Assumes that individuals form forecasts about the future based on all available information in an unbiased and consistent manner.
• Invisible Hand
  • Adam Smith's famous concept that individuals' self-interested actions can lead to positive social outcomes as if guided by an invisible hand.

The correct answer is Process Costing.

Key Points

• Process costing is used in industries like chemicals, oil refining, and flour milling, where products are indistinguishable from each other and it is not feasible to assign specific costs to individual units.
• Job Costing: Used where production is not continuous and costs are assigned to specific jobs or batches.
• Batch Costing: Similar to job costing but costs are compiled for batches rather than individual units.
• Contract Costing: Costs are assigned to specific contracts, typically in construction.
• Activity-Based Costing: Costs are assigned based on activities that drive costs, not specific to continuous production processes.

The correct answer is Divisional Structure

Key Points

• Divisional structures organize a business according to geographical area, product/service line, or market.
  • Each division operates almost like its own company, containing all the necessary functions within it.
  • This structure allows for flexibility and rapid response to changes in external market conditions because each division focuses closely on its specific operational area.
  • It can lead to efficiencies in operations where different products or services require distinctly different marketing strategies, production tasks, and talent management.

The correct answer is Company limited by guarantee.

Key Points

• The company limited by guarantee can be either a private limited company or a public limited company also, where the capital is not divided into shares.
• Here, the capital to be introduced by the members is in the nature of the guarantee.
• The subscriber to the Memorandum subscribes to the amount guaranteed and puts signature against the amount guaranteed.
• Here, the percentage of the ownership is based on the amount guaranteed.
• Whenever the requirement of capital arises, the members introduce the capital to the company.
• The liability of members is limited up to the amount of guarantee provided only.
• These companies can also issue shares, where the shareholders are also liable up to the amount unpaid on the shares as discussed above.
• However, shareholding is not the criteria for deciding ownership.
• In an unlimited company, the liability of the members is not limited. In case any debt arises, the liability of the members does not limit to their part in the company, rather it extends to their personal assets also.

Additional Information

• Foreign companies are owned by foreigners. An entity is registered as a foreign company when foreign participation in shareholding increases to more than 50%. Businesses registered outside India find it the most accessible way to set up business in India.
• In Company limited by shares, the capital is introduced in the form of Shares i.e. the capital of the company is divided into a small portion, known as shares. In this type of company, the liability of the members is limited up to the unpaid capital on the shares subscribed.
• A type of Private Company itself, One Person Company is commonly known as OPC. In OPC, there is only 1 member at any time during its existence. Here, this member must be an individual and an Indian resident.

The correct answer is Accounts Receivable.

Key Points

• Accumulated depreciation is a contra-asset account used to record depreciation expenses, reducing the total value of the asset affected.
• Accounts Receivable: An asset account representing money owed by customers.
• Prepaid Insurance: An asset account representing insurance payments made in advance.
• Goodwill: An intangible asset that represents non-physical assets like reputation.
• Inventory: An asset account holding the value of goods available for sale.

The correct answer is It incorporates the time value of money in decision-making.

Key Points

• NPV is highly valued for its consideration of the time value of money, providing a comprehensive measure of a project's profitability by discounting future cash flows to present values.

Additional Information

• Profitability index: Although NPV is related, the profitability index is a separate ratio that compares the present value of future cash flows with the initial investment.
• Ease of calculation: NPV calculations can be complex due to the discounting of cash flows and estimation of future cash flows.
• First-year cash flows: NPV considers all cash flows over the life of the project, not just the first year.
• Ignoring risk: NPV does not inherently ignore risk; adjustments can be made in the discount rate to account for risk.

The correct answer is It can cause the model to be unstable and difficult to audit.

Key Points

• Circularity in financial models, especially those involving project finance where interest expense might depend on the amount of debt, which in turn depends on cash flows influenced by interest expenses, can create instability and make the model complex and harder to audit.
• Model Stability: Circular references can lead to errors or require iterative calculations, complicating the model.
• GAAP Requirement: Generally Accepted Accounting Principles do not require circularity; they aim to prevent it in financial reporting.
• Model Simplification: Circularity typically complicates rather than simplifies financial models

The correct answer is To balance the interests of all stakeholders

Key Points

• Stakeholder theory argues that companies should make decisions that take into account the interests of all stakeholders, not just shareholders, including employees, suppliers, customers, communities, and the environment.
• This approach helps build sustainable and ethical business practices that can support long-term success.
• The theory promotes transparency, moral integrity, and community engagement as core values in corporate governance.

Additional Information

• To maximize shareholder value
  • This is the focus of shareholder theory, which prioritizes maximizing returns to shareholders as the primary objective of the company.
• To minimize environmental impact
  • While minimizing environmental impact is important and relevant to stakeholder theory, it is not the central goal but one of many considerations in balancing stakeholder interests.
• To focus exclusively on customer satisfaction
  • Focusing solely on customer satisfaction might overlook the needs and well-being of other stakeholders such as employees or the local community.
• To prioritize employee engagement over other considerations
  • While employee engagement is critical, stakeholder theory does not advocate prioritizing it over all other stakeholder interests but seeks a balance.

The correct answer is High income inequality

Key Points

• The Gini coefficient is a measure of income inequality within a nation.
• A higher Gini coefficient indicates greater inequality.
• High values typically reflect a large income gap between the rich and the poor, which can lead to social tension and economic inefficiency.
• Economists and policymakers monitor changes in the Gini coefficient to assess the effectiveness of economic and social policies aimed at reducing inequality.

Additional Information

• High economic growth
  • While economic growth can sometimes reduce income inequality, a high Gini coefficient does not directly imply growth.
• Low inflation rate
  • There is no direct correlation between the Gini coefficient and inflation rates.
• Increased foreign investment
  • Foreign investors may actually be cautious in countries with high income inequality due to potential social instability.
• Decreased government spending
  • Government spending levels are policy decisions that are not directly measured by the Gini coefficient.

The correct answer is Just-in-Time (JIT)

Key Points

• JIT is a core principle of Lean Management that aims to produce or procure inventory only as needed in the production process, minimizing waste associated with overproduction and storage.
• By focusing on reducing setup times, JIT enables faster switching from one product to another, which increases flexibility and efficiency in production.
• This methodology requires precise scheduling and high-quality processes to prevent disruptions and delays in production.

Additional Information

• Kaizen
  • Focuses on continuous incremental improvements in the production process.
• Kanban
  • A scheduling system for Lean and just-in-time production that manages workflow directly at the production line.
• Jidoka
  • Empowers machines and operators to detect when an abnormal condition has occurred and immediately stop work.
• Poka-Yoke
  • Error-proofing techniques are designed to prevent human errors in the production process.

The correct answer is Depreciating machinery over its useful life.

Key Points

• Matching Principle: An accounting concept that expenses should be matched with the revenues they helped to generate.
• Recognizing sales revenue when the payment is received & Recording revenue when the service is performed, regardless of payment: Focus on the revenue recognition principle, which states revenues are recognized when they are realized or realizable and earned.
• Expensing supplies when they are purchased: Implies more the conservatism principle, recognizing expenses early when there is doubt.
• Depreciating machinery over its useful life: Correct, as depreciating an asset over its life matches the cost of the asset with the revenue it generates over time.
• Adjusting prepaid insurance at the end of the fiscal year: Adjusting entries, like prepaid insurance, are more about the accrual principle, recognizing expenses when incurred, not necessarily matching with revenue.

The correct answer is the Rectification entry.

Key Points

• A rectification entry is made in the accounting records to correct an error. It is necessary when the original entries are incorrect.
• Adjustment slip: Commonly used in banking and cash handling.
• Correcting journal: Not a standard accounting term.
• Transfer note: Used primarily for recording transfers of assets or stock, not for correcting errors.
• Reversal entry: Used to reverse a previous entry, but not specifically for correcting errors.

The correct answer is Income Statement.

Key Points

• The income statement, or profit and loss statement, details a company's revenues and expenses over a specific period and culminates in the net income for the period.
• Balance Sheet: Shows the company's assets, liabilities, and shareholders' equity at a specific point in time.
• Cash Flow Statement: Provides an overview of cash inflows and outflows over a specific period.
• Statement of Retained Earnings: Shows the changes in retained earnings over the reporting period.
• Equity Statement: Often part of the broader financial statements, detailing changes in equity.

The correct answer is Job Costing.

Key Points

• Job Costing is ideal for businesses that produce custom products or services as it allows for detailed tracking of costs for individual jobs based on specific customer orders.
• Process Costing: Used for standardized production processes.
• Batch Costing: Suitable for groups of similar items that are produced together.
• Contract Costing: Typically used for long-term projects such as construction.
• Service Sector Costing: Used for businesses that provide services rather than tangible goods.