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Regulatory Body Exams Exam  >  Regulatory Body Exams Test  >  Mock Test Series for SEBI Grade A Exam 2026  >  SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Regulatory Body Exams MCQ

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 Free Online Test 2026


Full Mock Test & Solutions: SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 (100 Questions)

You can boost your Regulatory Body Exams 2026 exam preparation with this SEBI Grade A (Phase 2) Paper 2 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: 90 minutes
  • - Total Questions: 100
  • - Analysis: Detailed Solutions & Performance Insights

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SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 1
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Whenever RBl does some open market operation transactions, its main motive is to regulate

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 2
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'Not negotiable' written on a cheque crossing means

Detailed Solution: Question 2

Not Negotiable Crossing is defined in Sec. 130 of the Negotiable Instrument Act, 1881. The words 'not negotiable' can be added to a crossing. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument: the transferee of such a crossed cheque cannot get a better title than that of the transferor (cannot become a holder in due course) and cannot convey a better title to his own transferee, but the instrument remains transferable. In simple words we can say, the cheque cannot be presented by anyone other than the payee.

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SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 3
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The money market in our country consists of two sectors viz. the organised sector and the unorganised sector. Which of the following do(es) not fall under the organised sector?

Detailed Solution: Question 3

Indigenous bankers are private firms or individuals who operate as banks and as such both receive deposits and give loans. Indigenous Bankers belong to unorganised sector and are not governed by any set of guidelines. The indigenous bankers have been playing a significant role in the economic life of India. When commercial banking had not developed, they were the main source of finance for agriculturists, traders, businessmen, small industrialists etc.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 4
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In February 2012, RBI had removed the transaction limit per customer per day on mobile banking transactions. What was the earlier transaction cap?

Detailed Solution: Question 4

The Reserve Bank of India (RBI) has removed the transaction limit of Rs. 50,000 per customer per day on mobile banking transactions.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 5
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The high yielding varieties of wheat, the use of which resulted in the Green Revolution in India included

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 6
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Which of the following are considered as All India Financial Institutions (AIFIs)?
1. Five all India development banks.
2. Two specialized financial institutions.
3. Six investment institutions.
4. ICICI and UTI
Select the correct answer using the codes given below:

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 7
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Consider the following statements : As per 2001 Census :
1. The two States with the lowest sex ratio are Haryana and Punjab.
2. The two States with the lowest population per sq km of area Meghalaya and Mizoram
3. Kerala has both the highest literacy rate and sex ratio.
Which of the statements given above are correct ?

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 8
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Which one of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years ?

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 9
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Which of the following factors are largely responsible for industrial sickness in India ?
I. Faulty planning
II. Mismanagement
III. Inadequate equity capital
IV. Outdated technology
Select the correct answer using the codes given below :
Codes :

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 10
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The main difference between shares and debentures is that:
1. Share holders receive interest while debentue-holder receive dividend.
2. Share holders have no claim over the company in the event of its going bankrupt while debenture holders are creditors of the company.
3. Debentures can only be issued after the sale of shares.
4. Debenture holders get interest while share holders get dividend.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 11
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Capital formulation can take place in India by adopting the following measures.
1. Deficit financing
2. Taxation measures
3. Tapping disguised unemployment in agriculture
4. Taking foreign loans
Choose your answer from the codes below :

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 12
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Which of the following is an advantage of "Oral Communication"?

Detailed Solution: Question 12

Oral communication allows for instant feedback, clarification through questions, and adjustment based on tone and expressions. It does not provide a permanent record, is more prone to distortion (misremembering), and is not ideal for lengthy or complex information where written records are better.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 13
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"Grapevine" is another term for:

Detailed Solution: Question 13

The grapevine is the informal communication network in organizations. It spreads unofficial information, rumors, and gossip quickly through social interactions and is not part of the formal structure.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 14
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"Non-verbal communication" includes:

Detailed Solution: Question 14

Non-verbal communication involves body language, facial expressions, gestures, posture, eye contact, and tone of voice. Emails, reports, memos are written (verbal), and phone calls primarily rely on spoken words (verbal), though tone is non-verbal.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 15
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"Verbal Communication" consists of:

Detailed Solution: Question 15

Verbal communication uses words and is classified into oral (spoken) and written (text) forms. Body language is non-verbal, and the other options refer to direction or unrelated categories.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 16
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Lateral communication helps in:

Detailed Solution: Question 16

Lateral communication enables coordination, collaboration, and quick information sharing between departments or peers at the same level, helping to resolve issues efficiently without escalating through hierarchy.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 17
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Role of Information Technology (IT) in communication includes:

Detailed Solution: Question 17

IT tools like video conferencing, instant messaging, email, and collaboration platforms make communication faster, more interactive, and accessible across distances, significantly enhancing efficiency.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 18
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Directing involves which of the following sub-functions?

Detailed Solution: Question 18

Directing (or leading) includes supervision, motivation, leadership, communication, and coordination to guide and influence subordinates toward goal achievement. Planning, staffing, recruitment, and budgeting belong to other functions.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 19
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Taxpayers with an annual turnover of more than _____ crore rupees are compulsorily required to generate a Dynamic QR code on B2C invoices since July 2021.

Detailed Solution: Question 19

As per GST rules effective from July 1, 2021 (later amended), businesses with an annual aggregate turnover exceeding ₹100 crore are mandatorily required to generate Dynamic Quick Response (QR) Code on B2C invoices to enable digital payments and easier verification by consumers.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 20
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"Non-tax sources of Revenue" for the government include:

Detailed Solution: Question 20

Non-tax revenue includes earnings from government-owned assets, profits/dividends from public sector undertakings (PSUs), fees, fines, interest receipts, and receipts from economic services. Income tax, GST, customs, and STT are tax revenues.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 21
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Vertical devolution in the context of the Finance Commission refers to:

Detailed Solution: Question 21

Vertical devolution refers to the percentage share of the divisible pool of central taxes (net proceeds) allocated to the states collectively by the Finance Commission. Horizontal devolution is the distribution among the states.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 22
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Fund Flow System focuses on changes in:

Detailed Solution: Question 22

The Fund Flow Statement (Statement of Changes in Financial Position) is prepared on the working capital concept. It explains the changes in working capital (current assets minus current liabilities) over a period by showing sources and applications of funds.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 23
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Inventory should be valued at:

Detailed Solution: Question 23

As per AS-2 (Valuation of Inventories), inventory is valued at the lower of cost and net realizable value (NRV) to follow the prudence concept and avoid overstatement of assets.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 24
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Calculate Interest Coverage Ratio: Profit Before Interest and Tax (PBIT) = Rs 5,00,000; 12% Debentures of Rs 10,00,000.

Detailed Solution: Question 24

Interest = 12% of Rs 10,00,000 = Rs 1,20,000. Interest Coverage Ratio = PBIT / Interest = 5,00,000 / 1,20,000 = 4.1667 ≈ 4.17 times. Closest option is 4.16 (Option B), but many questions round to 4.17 or accept 5.00 if misread; standard calculation is 4.17.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 25
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Which of the following is a "Theory Base" principle?

Detailed Solution: Question 25

The Accrual Concept is one of the fundamental accounting principles (theory base) that recognizes revenues and expenses when earned/incurred, not when cash is received/paid.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 26
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Cash Flow from "Operating Activities" includes:

Detailed Solution: Question 26

Cash received from customers is a key inflow under operating activities. Purchase of investments and sale of machinery are investing activities; issue of debentures and payment of dividends are financing activities.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 27
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Revenue Recognition (AS-9): Interest income is recognized on:

Detailed Solution: Question 27

AS-9 requires interest income to be recognized on a time proportion basis (accrual basis) taking into account the amount outstanding and the rate applicable.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 28
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"Window Dressing" in financial statements refers to:

Detailed Solution: Question 28

Window dressing involves manipulating financial statements (e.g., temporarily reducing liabilities or inflating assets at year-end) to present a stronger financial position than actually exists.

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 29
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Operation Costing is a refinement of:

Detailed Solution: Question 29

Operation Costing (or Batch-related costing) is a hybrid/refinement of batch costing and process costing, used when products have common processes but differ in final operations (e.g., garments, footwear).

SEBI Grade A (Phase 2) Paper 2 Mock Test- 5 - Question 30
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Which section deals with the Annual General Meeting (AGM)?

Detailed Solution: Question 30

Section 96 mandates every company to hold an Annual General Meeting within the prescribed time limits.

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About this Regulatory Body Exams Mock Test

This mock test contains 100 questions designed to replicate the pattern, difficulty level and time pressure of the actual Regulatory Body Exams exam. It is part of Mock Test Series for SEBI Grade A Exam 2026 on EduRev, covering all the topics that are being asked as per the current Regulatory Body Exams syllabus. Attempting this test under timed conditions will help you assess your exam readiness, identify subject-wise weak areas, and improve your speed and accuracy before the actual exam.

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