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SEBI Grade A (General Stream) Mock Test - 5 Free Online Test 2026


Full Mock Test & Solutions: SEBI Grade A (General Stream) Mock Test - 5 (130 Questions)

You can boost your Regulatory Body Exams 2026 exam preparation with this SEBI Grade A (General Stream) Mock Test - 5 (available with detailed solutions).. This mock test has been designed with the analysis of important topics, recent trends of the exam, and previous year questions of the last 3-years. All the questions have been designed to mirror the official pattern of Regulatory Body Exams 2026 exam, helping you build speed, accuracy as per the actual exam.

Mock Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 100 minutes
  • - Total Questions: 130
  • - Analysis: Detailed Solutions & Performance Insights
  • - Sections covered: Paper - I, Paper - II

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SEBI Grade A (General Stream) Mock Test - 5 - Question 1

Which National Park in Nepal is a continuation of India's Valmiki National Park?

Detailed Solution: Question 1

The correct answer is Chitwan National Park.

Key Points Chitwan National Park:

  • Chitwan National Park of Nepal is the continuation of India’s Valmiki National Park, which is located in the West Champaran District of Bihar.
  • Located near northwestern Bihar, this national Park is an excellent example of the Terai landscape, which is characterized by swamps and marshy land.

Additional Information Bandipur National Park:

  • Bandipur National Park, an 874-sq.-km forested reserve in the southern Indian state of Karnataka is known for its small population of tigers.
  • Once the private hunting ground of the Maharajas of Mysore, the park also harbors Indian elephants, spotted deer, gaurs (bison), antelopes, and numerous other native species.

Dudhwa National Park:

  • Dudhwa Tiger Reserve was established in the year 1987.
  • It is spread over the areas of the Lakhimpur and Bahraich districts of Uttar Pradesh.
  • Total area: 1093.79 km sq.
  • It shares its north-eastern boundary with Nepal.
  • It is home to 400 bird species, including cheetahs, elephants, tigers, leopards, swamp deer, etc.

Jim Corbett National Park:

  • Jim Corbett National Park is the largest tiger reserve located in the Nainital district of Uttarakhand.
  • It was established in the year 1936.
  • It is famous for being home to a large number of tigers, the highest among any Indian national park.
  • The Park itself occupies 520 square kilometers, and its whole area comprises hills, marshy depressions, riverine belts, grasslands, and a large lake.
  • It is India's oldest and most prestigious National Park.

SEBI Grade A (General Stream) Mock Test - 5 - Question 2

What is the name of the Indian Coast Guard (ICG) ship that made a port call in Vietnam as part of its overseas deployment to ASEAN countries?

Detailed Solution: Question 2

The correct answer is ICGS Samudra Paheredar.In News

  • Samudra Paheredar, an Indian Coast Guard (ICG) Pollution Control Vessel with an integral helicopter, made a port call at Ho Chi Minh, Vietnam.

Key Points

  • During the three-day visit, as part of its ongoing overseas deployment to ASEAN countries, the crew engaged in professional interactions focusing on marine pollution response, maritime search & rescue, and maritime law enforcement, showcasing India's commitment to enhancing international cooperation with friendly countries.
  • The visit aims to strengthen ties between the ICG and Vietnam Coast Guard (VCG) and also demonstrates India's indigenous shipbuilding capabilities.
  • Furthermore, 25 National Cadet Corps (NCC) cadets aboard the vessel participated in Walkathon and Beach Clean-up activities, emphasizing India's shared concern and resolve towards marine pollution.
  • This overseas deployment is in pursuance with India ASEAN Initiative for marine pollution and reflects India's commitment to promoting safety and security through maritime cooperation in the ASEAN region.
  • Prior to Ho Chi Minh, the vessel had visited Manila, Philippines, showcasing a seamless continuation of diplomatic maritime engagements in the ASEAN region.

SEBI Grade A (General Stream) Mock Test - 5 - Question 3

What is the name of the all-in-one payment device launched by BharatPe?

Detailed Solution: Question 3

The correct answer is BharatPe One. In News
  • BharatPe launched an all-in-one payment device named BharatPe One.
Key Points
  • It integrates POS, QR code, and speaker functionalities into a single device.
  • The device is equipped with a high-definition touchscreen display, 4G and Wi-Fi connectivity, and runs on the latest Android operating system.
  • BharatPe plans to launch BharatPe One in approximately 100 cities in the first phase, expanding to 450 cities over the next 6 months.
  • It offers versatile payment acceptance options including dynamic and static QR codes, tap-and-pay, and traditional card payments.
  • BharatPe One aims to streamline transactions for merchants, catering to the diverse needs of offline businesses.
  • BharatPe CEO - Nalin Negi.
  • Founded - April 2018.

SEBI Grade A (General Stream) Mock Test - 5 - Question 4

Which of the following is the most appropriate option to fill in the blank labelled as (1)?

Detailed Solution: Question 4

The correct answer is option 2.

Key Points

To answer this question, let's first understand the context of the sentence containing the blank labelled as (1):

This ___(1)___ calls for a conducive learning environment, highlighting the importance of infrastructure and spatial planning in fostering these reforms.

  • This sentence emphasizes the need for a conducive learning environment and stresses the importance of infrastructure and spatial planning in implementing educational reforms.
  • Blank (1) should be filled with a word related to a guiding principle or belief system that guides the creation of a conducive learning environment, such as "philosophy."
  • Now, let's understand the meanings of the given words as options:
  • Routine - a sequence of actions regularly followed; a fixed program
    • For Example:
    • Her morning routine included jogging in the park and preparing a healthy breakfast.
  • Philosophy - the study of fundamental nature, knowledge, reality, existence, values, reason, mind, and language
    • For Example:
    • Eastern philosophy often emphasizes mindfulness and the interconnectedness of all things.
  • Hypothesis - a supposition or proposed explanation made based on limited evidence as a starting point for further investigation (परिकल्पना)
    • For Example:
    • Before experimenting, the scientist formulated a hypothesis to guide the research.
  • Foundation - the basis or groundwork of anything (आधार)
    • For Example:
    • Education is the foundation for personal and societal development.
  • Nostalgia - a sentimental longing or wistful affection for the past, typically for a period or place with happy personal associations (विरह)
    • For Example:
    • Looking at old photographs filled him with nostalgia for the carefree days of his youth.
  • So, given the context and the meanings of the words, the most appropriate option to fill in the blank labelled as (1) is "philosophy." It aligns with the idea that a guiding principle or belief system is needed to create a conducive learning environment, emphasizing the importance of infrastructure and spatial planning in fostering educational reforms.
  • Therefore, the correct answer is "philosophy."
  • The complete sentence would be: "This philosophy calls for a conducive learning environment, highlighting the importance of infrastructure and spatial planning in fostering these reforms."

SEBI Grade A (General Stream) Mock Test - 5 - Question 5

Directions: Read the sentence given below to find out if it contains an error. The error, if any, will be in one part of the sentence. If the sentence is error-free, select No error or option 5. Ignore errors of punctuation if any.

If I have (A)/ enough money, (B)/ I will buy (C)/ some chocolates. (D)/ No error (E)

Detailed Solution: Question 5

The correct answer is 'E' i.e. No error.

Key Points

  • In the given sentence, there is no error in any part of the sentence.
  • The given sentence is the first conditional sentence talking about a thing that might happen in the future.
  • We can't know what will happen in the future, but this describes possible things, which could easily come true.
  • The first conditional sentence format: if + present simple, ... will + infinitive.
  • When using the first conditional, we use the present simple (here, have) in the if-clause and the future simple (here, will buy) in the main clause.

Hence, the correct answer is option 5.

Correct sentence: If I have enough money, I will buy some chocolates.

SEBI Grade A (General Stream) Mock Test - 5 - Question 6

Directions: Read the sentence given below to find out if it contains an error. The error, if any, will be in one part of the sentence. If the sentence is error-free, select No error or option 5. Ignore errors of punctuation if any.

Her books (A)/ have been (B)/ translate into (C)/ 24 languages. (D)/ No error (E)

Detailed Solution: Question 6

The correct answer is 'C' i.e. this part of the sentence has an error.

Key Points

  • In the third part of the given sentence, the use of the base form of the verb 'translate' is incorrect.
  • The given sentence is a passive voice in the present perfect tense as it links the past to the present in some way.
  • The present perfect tense refers to an action or state that either occurred at an indefinite time in the past or began in the past and continued to the present time.
  • The present perfect tense in a passive voice is formed by have/has + been + the past participle (here, it should be translated).
  • The subject 'books' of the sentence is plural and it will take the plural verb 'have'.
  • Therefore, the past participle form of the verb 'translated' should be used in place of the base form of the verb 'translate'.

Hence, the correct answer is option 3.

Correct sentence: Her books have been translated into 24 languages.

SEBI Grade A (General Stream) Mock Test - 5 - Question 7

In the following question, two columns are given containing three phrases each. In the first column, phrases are A, B, and C, and in the second column, the phrases are D, E and F. A phrase from the first column may or may not connect with a phrase from the second column to make a grammatically and contextually correct sentence. There are five options, four of which display the sequence(s) in which the phrases can be joined to form a grammatically and contextually correct sentence. If, none of the options given forms a correct sentence after combination, select ‘None of these’ as your answer.

Detailed Solution: Question 7

The correct answer is option 4) i.e. A-E, B-F and C-D.
Explanation

We need to join the sentence segments in column 1 with those in column 2 to create sentences that are conceptually and grammatically correct. Let us see how the sentence parts can join.

  • Part A talks about how reading certain books have an ennobling influence. 'Ennobling' means 'acquiring greater dignity or nobility of character'. So contextually, it should be joined with part E as it points out what all are influenced by the reading of such books. So, A-E.
  • Part B talks about trash. So, contextually, it should be joined with part F which talks about recycle and reuse. So, B-F.
  • Part C talks about the personalities of detection dogs and so should be joined with part D that talks about how this personality trait can affect their suitability as pets. So, C-D.

In the given options, the correct answers A-E, B-F and C-D are reflected in option 4, making it the correct answer.

SEBI Grade A (General Stream) Mock Test - 5 - Question 8

Which of the following is a synonym for the word 'rude' as used in the phrase 'rude shock' in the passage?

Detailed Solution: Question 8

The correct answer is ‘Abrupt’.

Key Points

  • The word 'rude', in the context of the phrase 'rude shock', refers to something that is unexpected or abrupt, often in an unpleasant or startling way. (अभद्र or अकस्मात)
    • Example: The sudden thunderstorm was a rude awakening for the campers who were enjoying a sunny day.
  • The word 'abrupt' is used to describe something that happens suddenly and unexpectedly, without any warning. (आकस्मिक)
    • Example: The abrupt end of the meeting surprised everyone.
  • Hence, the correct synonym for 'rude' in the phrase 'rude shock' is 'abrupt'.

Therefore, the correct answer is- “Option 2”.
Additional Information

  • Option 1, 'Mild' means gentle and not severe. (कोमल or हल्का)
  • Option 3, 'Respectful' means showing politeness or deference. (सम्मानजनक)
  • Option 4, 'Decent' means conforming with generally accepted standards of respectable or moral behavior. (उचित or सभ्य)
  • Option 5, 'Gradual' means taking place or progressing slowly or by degrees. (धीरे-धीरे)

SEBI Grade A (General Stream) Mock Test - 5 - Question 9

According to the passage, which of the following statements is/are correct?

A. The government has stopped trying to control the import bill.

B. India's merchandise exports showed the highest growth in 11 months.

C. Global trade shrunk by 2% month-on-month in October.

Detailed Solution: Question 9

The correct answer is ‘Only B’.

Key Points

  • Statement B is accurate according to the passage where it's mentioned that merchandise exports surprised on the upside with the highest growth in 11 months.
  • Statements A and C are incorrect based on the information in the passage. The government has been trying to control the import bill, and global trade grew, not shrunk.
  • Therefore, only statement B is correct.

Therefore, the correct answer is ‘Option 2’.

Additional Information

  • Option 1, 3, 4, 5 are incorrect as they include statement A and/or C, which are false according to the passage.

SEBI Grade A (General Stream) Mock Test - 5 - Question 10

What is the size of the trade deficit that hit a record, as mentioned in the passage?

Detailed Solution: Question 10

The correct answer is ‘$31.5 billion’.

Key Points

  • The passage mentions that the trade deficit hit a record, reaching $31.5 billion.
  • This increase in trade deficit was due to a sharper rise in merchandise imports over the last October and nearly 21% rise over September’s tally.
  • The passage doesn't point towards any other figures being the size of the trade deficit.
  • The other numbers mentioned in the options refer to different economic values, not the trade deficit.

Therefore, the correct answer is ‘Option 2’.

Additional Information

  • Option 1, 4, and 5 are values mentioned in the passage, but they don't refer to the trade deficit.
  • Option 3 is the figure mentioned for the all-time high of merchandise imports in the passage.

SEBI Grade A (General Stream) Mock Test - 5 - Question 11

Directions: Given below is a word, followed by three sentences which consist of that word. Identify the sentence(s) that don't/doesn't express the meaning of the word.

PARODY
A. It also includes some brilliant parodies.
B. He had become a grotesque parody of himself and the gallery, at last, began to avert its eyes.
C. There is a twist to his parody tale.

Detailed Solution: Question 11

The correct answer is 'Only C'.

Key Points

  • Parody means- a piece of writing, speech, or music that copies the style of somebody/something in a funny way.
  • In Sentence A, the meaning of parody is understandable. "It includes some brilliant parodies."
  • In Sentence B, the meaning of parody is understandable here too. "He had become a grotesque parody of himself and the gallery, at last, began to avert its eyes"
  • In Sentence C, the meaning of parody is not being portrayed properly. Here, it is giving another meaning to the sentence.
  • Hence, the correct answer is option 3.

SEBI Grade A (General Stream) Mock Test - 5 - Question 12

Number of male visiting only B is what % of that of females visiting only B?

Detailed Solution: Question 12

Calculation:

Let the number of females visiting both cities be 2x

So, Number of males visiting both cities = 2x × 150% = 3x

Females visiting B only = 2x × 4 = 8x

Males visiting A only = 4 × 3x = 12x

Females visiting A only = 36

Males visiting B only = 16


Now, According to the question

12x + 16 + 3x = 36 + 8x + 2x

⇒ 15x + 16 = 36 + 10x

⇒ 5x = 20

⇒ x = 4

Now, Putting the values in table

Required percentage = (16/32) × 100

⇒ 50%

∴ The required percentage is 50%

SEBI Grade A (General Stream) Mock Test - 5 - Question 13

In the following question two equations are given. You have to solve the equations and mark the answer accordingly.

l. x2 – 29x + 204 = 0

ll. 2y2 – 43y + 176 = 0

Detailed Solution: Question 13

Calculation:

x2 – 29x + 204 = 0

⇒ x2 – 17x – 12x + 204 = 0

⇒ x (x - 17) – 12(x - 17) = 0

⇒ (x - 17) (x - 12) = 0

⇒ x = 17, 12

2y2 – 43y + 176 = 0

⇒ 2y2 – 32y – 11y + 176 = 0

⇒ 2y ( y - 16) – 11 ( y - 16) = 0

⇒ (2y - 11) (y - 16) = 0

⇒ y = 11/2, 16

Comparison between x and y (via Tabulation):

∴ The relation between x and y cannot determined.

SEBI Grade A (General Stream) Mock Test - 5 - Question 14

In the given question, two equations numbered l and II are given. Solve both the equations and mark the appropriate answer.

I. x2 – 20x + 100 = 0

II. y2 – 100 = 0

Detailed Solution: Question 14

Given:

I. x2 – 20x + 100 = 0

II. y2 – 100 = 0

Calculation:

x2 – 20x + 100 = 0

⇒ x2 – 10x - 10x + 100 = 0

⇒ x(x - 10) - 10(x - 10) = 0

⇒ (x - 10)(x - 10) = 0

Taking,

⇒ (x - 10) = 0

⇒ x = 10

From II,

y2 – 100 = 0

⇒ y2 = 100

⇒ y = ±√100

⇒ y = ±10

⇒ y = 10 or -10

Comparison between x and y (via Tabulation):


∴ x ≥ y.

SEBI Grade A (General Stream) Mock Test - 5 - Question 15

Number of qualified candidate in 2018 is what percent more or less than the number of qualified candidate in 2020?

Detailed Solution: Question 15

Given:

Number of candidates who appeared in 2018 = 480

Number of candidates who appeared in 2020 = 900

percentage of appeared candidates who were unqualified in 2018 = 40%

percentage of appeared candidates who were unqualified in 2020 = 36%

Calculation:

percentage of appeared candidates who were qualified in 2018 = 100 - 40 ⇒ 60%

percentage of appeared candidates who were qualified in 2020 = 100 - 36 ⇒ 64%

Number of qualified candidates in 2018 = 480 × 60/100 ⇒ 288

Number of qualified candidates in 2020 = 900 × 64/100 ⇒ 576

Required %

SEBI Grade A (General Stream) Mock Test - 5 - Question 16

Motu, Patlu and chotu decide to start the consultancy agency. They invested their sum in the ratio of 25 ∶ 15 ∶ 29 respectively. They earned Rs. 22,977 as a profit at the end of the year, then what is the difference between share of Motu and Patlu?

Detailed Solution: Question 16

Given

Ratio of invested sum = 25 ∶ 15 ∶ 29

Total profit at the end of the year = Rs. 22,977

X = 22977/69 = Rs. 333

∴ Required difference = Rs. (25x – 15x) = Rs. 10x → Rs. 10 × 333 = Rs. 3330

Hence, the difference between share of Motu and Patlu is Rs. 3330.

SEBI Grade A (General Stream) Mock Test - 5 - Question 17

The curved surface area of a cylinder is increase by 25% then find the percentage change in height of the cylinder if the radius of the cylinder is the same.

Detailed Solution: Question 17

Solution:

Given:

The curved surface area of cylinder increased by 25%

Calculation:

Let be assume a curved surface area be p

Increased curved surface area is = 5p/4

Percentage change in height = [(5p/4 - p)/p] × (100)

⇒ (1/4) × 100 = 25%

∴ The required percentage change is 25%.

Important Point

The curved surface area of cylinder = 2 × π × r × h

SEBI Grade A (General Stream) Mock Test - 5 - Question 18

How many boxes are there between P and R?

Detailed Solution: Question 18

Seven boxes : P, Q, R, S, T, U, and V.

Number of chocolates: 2, 6, 9, 12, 16, 17, and 19.

1). There are two boxes between S and the box in which there is 12 chocolates.

2). S is above the box which has 12 chocolates.

3). S is placed below P.

4). P doesn't have 16 chocolates.

5). There are two boxes between the box having 6 and 16 chocolates.

6). Two boxes are placed between P and the box in which there are 9 chocolates.

7). U is immediately below the box which has 16 chocolates.

8). There are only three boxes between T and the box which has 9 chocolates.

After combining all, we have

Case 1:

Case 2:

Case 3:

Case 4:

9). The difference between the number of chocolates in box S and the box just above S is 13. ( Here we see only numbers 6 and 19, where the difference is 13 possible. so, either S is 6/19 or the box just above S is 19/6 has the number of chocolates).

From here Case 1, Case 2, and Case 4 get eliminated. ( as the number of 6 chocolates is in it but it is not just above S.)

From Case 3, we can say that S has 19 chocolates, as 6 is just above it.

Case 3

10). Only one box is between Q and V.

11). Q doesn't have 6 chocolates.

12). The number of chocolates in the box which is just above V is less than the number of chocolates in V.

13). As Only R and 17 chocolates are left, it occupies the left position i.e. R has 16 chocolates and T has 17 chocolates.

The final arrangements:

Hence, There are three boxes between P and R.

SEBI Grade A (General Stream) Mock Test - 5 - Question 19

Which city hosted the National Textiles Ministers' Conference on 8-9 January 2026?

Detailed Solution: Question 19

The Ministry of Textiles, in collaboration with the Government of Assam, organized the National Textiles Ministers' Conference on 8-9 January 2026 in Guwahati.

SEBI Grade A (General Stream) Mock Test - 5 - Question 20

Which operation was launched by Punjab Police in January 2026 to dismantle organized gangster networks?

Detailed Solution: Question 20

Punjab Police launched 'Operation Parhar' on 20 January, a large-scale crackdown aimed at dismantling organized gangster networks and making the state crime-free.

SEBI Grade A (General Stream) Mock Test - 5 - Question 21

On which date is International Data Privacy Day observed annually?

Detailed Solution: Question 21

International Data Privacy Day is observed annually on 28 January, commemorating the signing of Convention 108 in 2006 by the Council of Europe.

SEBI Grade A (General Stream) Mock Test - 5 - Question 22

Accounting Standards provide guidelines for various accounting practices. The accounting standard that deals with revenue recognition is __________.

Detailed Solution: Question 22

The correct answer is AS 9.

Key Points

  • AS 9 - Revenue Recognition
    • Provides guidelines on when and how revenue should be recognized in the financial statements, typically when goods are delivered or services are rendered.
  • AS 2 - Valuation of Inventories
    • Deals with the methods of valuing inventories.
  • AS 10 - Accounting for Fixed Assets
    • Pertains to the accounting treatment of fixed assets.
  • AS 16 - Borrowing Costs
    • Deals with the accounting treatment of borrowing costs.
  • AS 18 - Related Party Disclosures
    • The objective of this Standard is to establish requirements for disclosure of:
      (a) related party relationships; and
      (b) transactions between a reporting enterprise and its related parties.

SEBI Grade A (General Stream) Mock Test - 5 - Question 23

Which of the following is NOT a component of a Lean System in Costing?

Detailed Solution: Question 23

The correct answer is Activity-Based Costing (ABC).

Key Points

  • Just-in-Time (JIT) is a strategy to improve a business's return on investment by reducing in-process inventory and associated carrying costs.
  • Total Productive Maintenance (TPM) focuses on maintaining and improving production and quality systems through the machines, equipment, processes, and employees.
  • Kaizen Costing emphasizes continuous improvement in cost reduction and efficiency.
  • 5 Ss refer to five Japanese words that are used to describe the steps of workplace organization: Seiri (Sort), Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).
  • Activity-Based Costing (ABC) allocates overhead to multiple cost objects, and is not a direct component of Lean Systems.

SEBI Grade A (General Stream) Mock Test - 5 - Question 24

Which of the following best describes the concept of "Multiplier" in macroeconomics?

Detailed Solution: Question 24

The correct answer is The change in equilibrium GDP resulting from a change in autonomous spending.

Key Points

  • The multiplier effect describes how an initial change in autonomous spending (such as investment, government spending, or exports) leads to a larger change in overall economic output.
  • The size of the multiplier depends on the marginal propensity to consume (MPC) and the marginal propensity to save (MPS).
  • A higher MPC leads to a larger multiplier effect, as more of the initial spending is re-spent in the economy.
  • The formula for the simple multiplier is 1 / (1 - MPC).

Additional Information

  • Multiplier Effect
    • Explains how an initial change in autonomous spending leads to a larger change in equilibrium GDP.
  • Marginal Propensity to Consume (MPC)
    • The fraction of additional income that households spend on consumption.

SEBI Grade A (General Stream) Mock Test - 5 - Question 25

In the context of managerial roles, which of the following is primarily associated with the interpersonal role as defined by Henry Mintzberg?

Detailed Solution: Question 25

The correct answer is Leader.

Key Points

  • Henry Mintzberg identified ten managerial roles, which he grouped into three categories: interpersonal, informational, and decisional.
  • Interpersonal Roles
    • Include figurehead, leader, and liaison roles, focusing on interactions with subordinates and others.
  • Informational Roles
    • Include monitor, disseminator, and spokesperson roles, focusing on processing and sharing information.
  • Decisional Roles
    • Include entrepreneur, disturbance handler, resource allocator, and negotiator roles, focusing on decision-making processes.
  • Leader Role
    • Involves directing and coordinating the activities of subordinates, as well as providing motivation and support.

SEBI Grade A (General Stream) Mock Test - 5 - Question 26

Which of the following is not a primary objective of Cost and Management Accounting?

Detailed Solution: Question 26

The correct answer is Ensuring statutory compliance

Key Points

  • Cost and Management Accounting primarily focuses on assisting management in decision-making by providing relevant cost information.
  • It facilitates budget preparation and helps in planning and control of financial resources.
  • Cost control is a significant objective, aimed at reducing expenses and improving profitability.
  • Improving operational efficiency through analysis and management of costs is another key objective.

Additional Information

  • Cost and Management Accounting
    • Focuses on the analysis, interpretation, and use of cost data for planning and control within an organization.
  • Statutory Compliance
    • Ensuring adherence to laws and regulations, typically a function of financial accounting.

SEBI Grade A (General Stream) Mock Test - 5 - Question 27

Which of the following is not considered a derivative instrument in financial markets?

Detailed Solution: Question 27

The correct answer is Treasury bond.

Key Points

  • Derivatives are financial instruments whose value is derived from an underlying asset, index, or rate.
  • Forward contracts, call options, interest rate swaps, and futures contracts are all types of derivatives.
  • Treasury bonds are debt securities issued by the government and are not derivatives.
  • Derivatives are commonly used for hedging, speculation, and arbitrage in financial markets.
  • Treasury bonds are typically used for investment and risk-free return purposes.

Additional Information

  • Derivatives
    • Financial instruments whose value is derived from an underlying asset, index, or rate.
  • Treasury Bonds
    • Long-term debt securities issued by the government, typically with maturities of more than 10 years.

SEBI Grade A (General Stream) Mock Test - 5 - Question 28

Consider the following statements about the role of the Securities and Exchange Board of India (SEBI):

  1. SEBI regulates the securities market to protect the interests of investors.
  2. SEBI promotes the development of the securities market by introducing new products and services.
  3. SEBI has the authority to impose penalties on market participants for violations of securities laws.

Which of the above statements are correct?

Detailed Solution: Question 28

The correct answer is 1, 2, and 3.

Key Points

  • SEBI regulates the securities market to protect the interests of investors and ensure fair practices.
  • SEBI promotes the development of the securities market by introducing new products and services to enhance market efficiency and depth.
  • SEBI has the authority to impose penalties on market participants for violations of securities laws, thereby maintaining market integrity.

Additional Information

  • Securities and Exchange Board of India (SEBI)
    • Established in 1988 and given statutory powers in 1992, SEBI aims to regulate and develop the Indian securities market.
  • Investor Protection
    • SEBI ensures that investors are protected from fraudulent practices and that they have access to accurate information for making investment decisions.
  • Market Development
    • By introducing new products and services, SEBI promotes the development of the securities market, making it more efficient and accessible.
  • Regulatory Authority
    • SEBI has the power to impose penalties and take enforcement actions against market participants who violate securities laws.

SEBI Grade A (General Stream) Mock Test - 5 - Question 29

Which of the following is an example of a non-monetary item under accounting standards?

Detailed Solution: Question 29

The correct answer is Inventory

Key Points

  • Non-Monetary Items
    • Include assets that do not have a fixed or determinable amount of money, such as inventory, fixed assets, and intangible assets.
  • Monetary Items
    • Include cash and items that will be settled in cash, such as accounts receivable, accounts payable, and bank overdrafts.
  • Inventory
    • It is classified as a non-monetary item because its value can fluctuate based on market conditions and it is not a fixed amount of money.
  • Cash and Cash Equivalents
    • They are always considered monetary items as they have a fixed or determinable amount of money.

SEBI Grade A (General Stream) Mock Test - 5 - Question 30

Global depository receipt is mentioned in which of the following sections of Companies Act, 2013?

Detailed Solution: Question 30

The correct answer is Section 41

Key Points Global Depository Receipt (GDR):

  • Global Depository Receipt (GDR) is an instrument in which a company located in a domestic country issues one or more of its shares or convertibles bonds outside the domestic country.
  • According to Section 41 of Companies Act 2013, a company may, after passing a special resolution in its general meeting, issue depository receipts in any foreign country in such manner, and subject to such conditions, as may be prescribed.

Important Points Advantages of using GDRs:

  • GDR provides access to foreign capital markets.
  • GDR can be freely transferred.
  • GDR increases the shareholders base of the company.

Disadvantages of Using GDRs:

  • Violating any regulation can lead to serious consequences of the company.
  • Dividends are paid in the domestic country's currency, which is subject to volatility in the forex market.
  • GDR is one of the expensive sources of finance.

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