GS PrelimsEconomyInvestment2007

Participatory Notes (PNs) are associated with which one of the following?

Consolidated Fund of India

Foreign Institutional Investors

United Nations Development Programme

Kyoto Protocol

Correct Answer: Option B

Explanation

1. Participatory Notes (PNs or P-Notes) are financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian securities. 2. These instruments are issued by registered Foreign Institutional Investors (FIIs) to overseas investors. Essentially, the FII buys Indian securities and then issues PNs to the foreign investors, deriving the value from the underlying Indian stocks.

More Economy PYQs

With reference to investments, consider the following : 1. Bonds 2. Hedge Funds 3. Stocks 4. Venture Capital How many of the above are treated as Alternative Investment Funds?
Consider the following statements: 1. Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. 2. Statement II : Bondholders are lenders to a company whereas stockholders are its owners. 3. Statement III : For repayment purpose, bond-holders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?
Consider the following statements : 1. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. 2. India's stock market has grown rapidly in the recent past even overtaking Hong Kong's at some point of time. 3. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?
Which of the following are the sources of income for the Reserve Bank of India? 1. Buying and selling Government bonds 2. Buying and selling foreign currency 3. Pension fund management 4. Lending to private companies 5. Printing and distributing currency notes Select the correct answer using the code given below.
Consider the following statements in respect of RTGS and NEFT : 1. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments. 2. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. 3. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?
Consider the following statements : 1. Capital receipts create a liability or cause a reduction in the assets of the Government. 2. Borrowings and disinvestment are capital receipts. 3. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

View all Economy questions →

Master UPSC Revision

Get 10,000+ topic-wise MCQs, spaced repetition, daily CSAT challenges, and detailed performance analytics.

Coming Soon to Play Store