Insights Static Quiz -330, 2019
Economy
INSIGHTS STATIC QUIZ 2019
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Question 1 of 5
1. Question
Consider the following statements regarding Alternative investment funds (AIFs).
- AIFs are private funds which are not coming under the jurisdiction of any regulatory agency in India.
- AIFs include venture Capital Fund, hedge funds, private equity funds and Mutual Funds.
- Recently SEBI removed Angel fund from the category of Alternative investment funds.
Which of the above statements is/are correct?
Correct
Solution: a)
AIF refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP). Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India.
The definition of AIFs includes venture Capital Fund, hedge funds, private equity funds, commodity funds, Debt Funds, infrastructure funds, etc., while, it excludes Mutual funds or collective investment Schemes, family trusts, Employee Stock Option.
“Angel fund” is a sub-category of Venture Capital Fund under Category I Alternative Investment Fund that raises funds from angel investors.
Incorrect
Solution: a)
AIF refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP). Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India.
The definition of AIFs includes venture Capital Fund, hedge funds, private equity funds, commodity funds, Debt Funds, infrastructure funds, etc., while, it excludes Mutual funds or collective investment Schemes, family trusts, Employee Stock Option.
“Angel fund” is a sub-category of Venture Capital Fund under Category I Alternative Investment Fund that raises funds from angel investors.
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Question 2 of 5
2. Question
Consider the following statements about Angel funds.
- Angel funds refer to a money pool created by high net-worth individuals or companies, for investing in business start-ups.
- While venture capital funds generally invest at a later stage of development of the investee company, the angel funds strictly focus on startups.
- Angel funds can raise funds only by way of issue of units to angel investors and should have a corpus of at least ten crore rupees.
Which of the above statements is/are correct?
Correct
Solution: d)
Angel funds refers to a money pool created by high net-worth individuals or companies (generally called as angel investors), for investing in business start-ups. They are a sub-category of venture capital funds with strict focus on startups, while venture capital funds generally invest at a later stage of development of the investee company.
Angel funds can raise funds only by way of issue of units to angel investors and should have a corpus of at least ten crore rupees.
Incorrect
Solution: d)
Angel funds refers to a money pool created by high net-worth individuals or companies (generally called as angel investors), for investing in business start-ups. They are a sub-category of venture capital funds with strict focus on startups, while venture capital funds generally invest at a later stage of development of the investee company.
Angel funds can raise funds only by way of issue of units to angel investors and should have a corpus of at least ten crore rupees.
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Question 3 of 5
3. Question
Which of the following can aid furthering the government’s objective of Financial Inclusion?
- Financial advice to the disadvantaged groups
- Affordable payment and remittance services
- Disbursal of interest free loans to economically weaker section
- Promoting savings by opening zero balance bank account.
Select the correct answer code:
Correct
Solution: d)
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.
Incorrect
Solution: d)
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.
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Question 4 of 5
4. Question
The general rise in Gini Coefficient may indicates
Correct
Solution: d)
Gini Coefficient is a popular statistical measure to gauge the rich-poor income or wealth divide. It measures inequality of a distribution — be it of income or wealth — within nations or States. Its value varies anywhere from zero to 1; zero indicating perfect equality and one indicating the perfect inequality.
Gini Coefficients can be used to compare income distribution of a country over time as well. An increasing trend indicates that income inequality is rising independent of absolute incomes.
A GENERAL RISE IN GINI COEFFICIENT indicates that government policies are not inclusive and may be benefiting the rich more than the poor.
Incorrect
Solution: d)
Gini Coefficient is a popular statistical measure to gauge the rich-poor income or wealth divide. It measures inequality of a distribution — be it of income or wealth — within nations or States. Its value varies anywhere from zero to 1; zero indicating perfect equality and one indicating the perfect inequality.
Gini Coefficients can be used to compare income distribution of a country over time as well. An increasing trend indicates that income inequality is rising independent of absolute incomes.
A GENERAL RISE IN GINI COEFFICIENT indicates that government policies are not inclusive and may be benefiting the rich more than the poor.
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Question 5 of 5
5. Question
Hedging in the foreign exchange market refers to:
Correct
Solution: d)
A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
Incorrect
Solution: d)
A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
