Edutap Mock_IFSCA Phase 2

All India Mock Test
IFSCA - 2023
Maximum marks (100) Time (60 mins.)

Instructions-
1) All questions are compulsory.
2) Figures to the right indicate maximum marks to each question.
3) Answers must be written only in English.
4) Marks will be deducted if word limit is not observed.
5) No copies shall be entertained after the last date of submission.
1|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

Q.1 Write an Essay of about 200 words on any one of the following topics: - (30 Marks)
1. How do foreign exchange reserves impact national markets?
The nation’s foreign exchange reserves rose by $6.56 billion to $531.08 billion for the week
ending October 28, according to the data that the Reserve Bank of India has released.
India’s foreign reserve logged its most significant jump since September 2021 and rose for
the first time in three weeks for the week ending October 28. The rise in foreign currency
reserves was helped by gains in foreign currency and gold.
The slight rise in itself might be an occurrence to rejoice at, but Spot forex reserves are still
down from $607 billion at the end-March and have showcased a depletion of about
$111.37 billion from the record high of 4642.45 as seen on September 3 last year. Oct 7
showcased the previous rise in forex reserves when gold reserves had lifted the forex
reserves by a meager $ 204 million.
A gain in foreign currency has been one of the most prominent reasons behind the foreign
currency assets, which form a significant part of the overall reserve. Foreign Currency
assets rose $5.77 billion to $470.85 billion for the week ending October 28. Gold reserves
showcased a rise of $556 million to $ 37.762 billion. Foreign exchange reserves form a
crucial element in international trading in-between nations.
The optimal level of reserves has been indicated as a level where the marginal productivity
of reserves plus the interest on assets equals to the marginal productivity of real resources.
This framework encompasses exchange rate stability as the predominant objective of the
reserve management. As the underlying costs and benefits of reserves can be measured in
several ways, these approaches provide ample scope for developing various indicators for
ascertaining an appropriate level of reserves.
While the sudden and rather singular spike in the increase of foreign reserves seems like
an anomaly as of yet, it could become a trend if the market conditions remain to be
favorable. Even if the forex reserves tumble, the pace of development and progress of India
never seems to be slowing down. Be a part of our nation’s tremendous growth and reap
the benefits of progress in every sector of the economy; let FDI India be your partner in
supervising your investments in the right economic sectors at the right time. FDI India can
provide the financial supervision and the permissions necessary for foreign direct
investments in India. Invest today for the future that awaits tomorrow.
2. Young India: a boon or bane?
India, like many South Asian countries, has a young population. This is at once an
opportunity for future economic growth, but it presents policymakers with the challenge
of creating employment. According to the World Bank, the projected increase in South
Asia’s working-age population during 2020-2050 is some 254.m accounting for 30.6% of
the increase worldwide. India alone will account for 16.5% of the increase. Meanwhile
China’s working-age population will decline over the same period by some 226m with falls
in most parts of the developed world.
Clearly generating new jobs in India and the rest of South Asia is critical for economic
growth and development, not just within the region but globally. But unemployment in
India has increased in recent years, leading to protests by the youth in many parts of the
country. Alongside the expansion of labour supply, increasing enrolment in education and
a growing exodus of young people from agriculture are swelling the jobless ranks. Of all
15-29-year-old females in India, only 16.3% were attending schools or colleges in 2005.
This proportion increased to 31.0% by 2018.
Until it was hit by the Covid-induced crisis, India’s economy was growing at relatively fast
rates. However, in 2020, the first year after the Covid-19 outbreak, India’s GDP growth fell
to negative rates (-7.3%), leaving millions of its informal sector workers without any source
of income. At the root of India’s employment crisis is stunted job creation in the
manufacturing sector. The size of the manufacturing workforce in India fell from 61.3m in
2012 to 58.6m in 2018. It rose marginally to 59.8 million in 2020. Most of the job losses
after 2012 occurred in micro and small industries.
Of India’s total workforce of 471.0 million, only 12.3% are regular workers who receive
some form of social security and are covered, at least partially, by laws that protect labour
rights. The rest are mostly casual workers or petty producers surviving under various
degrees of informality. One of the moving images of India’s national lockdown in March
2020 during the Covid-19 outbreak was of thousands of poor migrant workers walking
hundreds of kilometers to return to their villages.
The rising numbers of the young in India as well as in other South Asian countries offer a
potential new source of demand that could revitalise the global economy. However,
translating this potential requires policies that help raise the incomes of poor workers.
These are policies that very often run counter to mainstream economics. Clearly,
significant change at policy level is needed if India is to capitalise on the advantages its
youthful population offers.
3. Road ahead for Indian economy.
Strong economic growth in the first quarter of FY 2022-23 helped India overcome the UK
to become the fifth-largest economy after it recovered from repeated waves of COVID-19
pandemic shock. Real GDP in the first quarter of 2022–23 is currently about 4% higher than
its corresponding 2019-20, indicating a strong start for India's recovery from the pandemic.
Given the release of pent-up demand and the widespread vaccination coverage, the
contact-intensive services sector will probably be the main driver of development in 2022–

2023. Rising employment and substantially increasing private consumption, supported by
rising consumer sentiment, will support GDP growth in the coming months.
Future capital spending of the government in the economy is expected to be supported by

factors such as tax buoyancy, the streamlined tax system with low rates, a thorough
assessment and rationalisation of the tariff structure, and the digitization of tax filing. In
the medium run, increased capital spending on infrastructure and asset-building projects
is set to increase growth multipliers, and with the revival in monsoon and the Kharif
sowing, agriculture is also picking up momentum. The contact-based services sector has
largely demonstrated promise to boost growth by unleashing the pent-up demand over
the period of April-September 2022. The sector's success is being captured by a number of
HFIs (High-Frequency Indicators) that are performing well, indicating the beginnings of a
comeback.
India has emerged as the fastest-growing major economy in the world and is expected to
be one of the top three economic powers in the world over the next 10-15 years, backed
by its robust democracy and strong partnerships.
India's economic story during the first half of the current financial year highlighted the
unwavering support the government gave to its capital expenditure, which, in FY 2022–23
(until August 2022), stood 46.8% higher than the same period last year. The ratio of
revenue expenditure to capital outlay decreased from 6.4 in the previous year to 4.5 in the
current year, signaling a clear change in favour of higher-quality spending. Stronger
revenue generation as a result of improved tax compliance, increased profitability of the
company, and increasing economic activity also contributed to rising capital spending
levels.
Despite the continued global slowdown, India's exports climbed at the second highest rate
this quarter. With a reduction in port congestion, supply networks are being restored. The
CPI-C and WPI inflation reduction from April 2022 already reflects the impact. In August
2022, CPI-C inflation was 7.0%, down from 7.8% in April 2022. Similarly, WPI inflation has
decreased from 15.4% in April 2022 to 12.4% in August 2022. With a proactive set of
administrative actions by the government, flexible monetary policy, and a softening of
global commodity prices and supply-chain bottlenecks, inflationary pressures in India look
to be on the decline overall.
4. Why National Logistics Policy is Important?
The country spends between 13 and 14 percent of its GDP on logistical costs. While
countries like Germany and Japan, which are renowned for their highly developed
infrastructure and systems for logistics, spend just about 8% to 9% of their GDP on logistics.

In addition, the logistics industry is worth $200 billion and is supported by over 20
government agencies, 40 Partner Government Agencies (PGA), 37 export promotion
councils, 500 certifications, over 10,000 commodities, and a large number of certificates.
Additionally, it involves 50 IT ecosystems, banks, and insurance companies, together with
200 shipping companies, 36 logistics services, 129 inland container depots (ICD), and 166
container freight stations (CFS).
Unified Logistics Interface Platform (ULIP) has been identified as a promising initiative that
has been conceptualized to provide an integrated platform that can be used effectively by
stakeholders to enhance efficiency, utilize technology, and lower the cost of logistics in
India. This initiative aims to achieve an “Atmanirbhar Bharat” in the logistics sector.
ULIP was chosen as one of the seven initiatives under the “Technology Commons”
initiative, which leverages technology in specifically identified priority areas by developing
world-class products and services.
Three levels make up the ULIP platform as a whole: the Integration layer, the Governance
layer, and the Presentation layer. The goal is to develop a UPI-like framework that will
allow the logistic department’s transactions to be authorized.
ULIP would bring together seven ministries on a single platform to give logistics companies
details about the flow of cargo around the country. Additionally, the 17 digital platforms
from the seven ministries will be integrated by the government into ULIP.
Data on cargo movement across the nation would be made available to logistics firms,
importers, and exporters through ULIP, which will also assist in granting approvals for cargo
transportation.
National Logistics Policy would lower logistics costs, boost international trade, help India
become “Atmanirbhar” or self-sufficient, usher in wealth throughout the country, and
open up new chances for our startups. The country’s farmers would benefit greatly from
the program since it would enable them to market their products more quickly, cut down
on waste, and avoid unnecessary delays, all of which would lower prices overall.
The National Logistics Policy is the obvious next step after the PM Gati Shakti National
Master Plan and would offer a comprehensive roadmap for the growth of the whole
logistics ecosystem.
Q.2 Make a Précis of the following passage in 120 words and give it a suitable title. (35
Marks)
It’s taboo but we all think about it. We are told it’s not good to talk or even think about
death.

We are all going to die. Death is a shadow that follows all the time. The recent pandemic
had reminded us that death is always close by, one can face it any time, even the very next
moment, there is nothing to be scared of it, and it is a fate we all will share.
Logically, all of us know that we are going to die but emotionally we feel invincible, and
that is why we waste our time complaining so much, rather than being grateful enough.
It’s all because we don’t have the right perception of death.
If you are going to die tomorrow, what will you do on your last day in this world? Would
you rather waste your time thinking about the future or do something that will give you
deep fulfilment and make your “now” more enjoyable.
Contemplating death puts things into perspective. We are here to experience life. It is just
like a football game. The match starts when we are born, and when the final whistle blows,
it’s all over. There is no point in complaining about the weather, about your teammates
not playing right. All you can do is go out there and do the best you can to score a goal.
Contemplating death makes you understand how precious this present moment is. The
present never comes back. Future is just a concept; it never exists, what exists is now.
Awareness of death makes you feel liberated. Why will you not do something without
thinking about what others might think of you? You are going to die one day. That day, the
things that you are scared of won’t matter. All your problems just won’t matter, so invest
your time in something that makes you happy.
The more you think about the inevitable death the more liberated you will
be. Contemplating death makes you grateful for everything you have, everything you think,
and all the experiences.
Look around for a second, look at the trees, the birds, and the people. There will come a
time when everything that you see now will not exist, so every second spent with it is
precious.
We are all going towards death, then why not say things that you never dared to say,
forgiving the people with whom in the past you had negative experiences, and being
grateful to people who had always been with you and had positively changed your life.
Becoming aware of your mortality is an awakening experience. It might help you in living
your life authentically and entirely, and perhaps for the first time, you will truly be free.
Solution –
The euphoria of accepting death

Death has always been clung to human mind, only to be refreshed by the pandemic. We
have logically accepted the death but we emotionally deny the same. This is the reason we
waste our time in petty things that we would never do knowing that this could be our last
day. All around us is bound to perish and so do we. However, contemplating death and
acknowledging its inevitability make us more liberated to do the right things, say stuff that
we otherwise daren't say, forgive people and to walkover the negative experiences of life.
The cognizance of mortality uplifts the spiritual status of a person enabling him to be free
from the shackles of life.
Q. 3 Read the given Passage and answer the Question given below based on the Passage.
(35 Marks)
India's service sector growth continued to strengthen in May, with companies reporting
the quickest increase in business activity since April 2011, a monthly survey showed on
Friday.
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 58.9
in May from 57.9 in April, clocking the fastest rate of expansion in over 11 years. A reading
above 50 indicates an overall increase in output.
The upturn was aided by a substantial pick-up in new business growth as demand
continued to recover following the reopening of the economy after Covid-19 lockdowns.
"The reopening of the Indian economy continued to help lift growth in the service sector.
Business activity rose at the quickest pace in over 11 years in May, supported by the fastest
upturn in new orders since July 2011," says Pollyanna De Lima, economics associate
director at S&P Global Market Intelligence.
Inflation outlook, however, worsened as input prices rose at the sharpest pace in the
survey history. Inflation showed no signs of abating as price gauges showed an
unprecedented increase in input costs and the second-fastest upturn in selling charges in
less than five years.
May data marks the twenty-third successive month of rising input prices at Indian service
providers. The rate of inflation climbed to the highest in 16-and-a-half years of data
collection.
Elevated price pressures continued to restrict business optimism. Despite picking up from
April, the overall level of sentiment among service providers was historically subdued, says
Lima.

Services firms reported substantial pressure from food, fuel, input, labour and
transportation costs. But companies continued to transfer rising cost burdens to customers
via upward adjustments to selling prices.
Despite remaining optimistic towards the 12-month outlook for business activity, firms
remained concerned that inflationary pressures would dampen the economic recovery.
The overall level of positive sentiment improved from April, but remained historically low.
There was a further increase in outstanding business among services firms during May.
"The rise was fifth in consecutive months and the fastest in a year, but moderate overall.
Where backlogs expanded, companies associated this with greater new orders," says the
survey.
Still, service providers refrained from taking on additional workers in May. In fact, there
was a renewed but only marginal decline in employment.
The latest results continued to signal subdued global demand for Indian services, with new
business from abroad having now declined in each month since the onset of the Covid-19
pandemic in March 2020.
Consumer services remained the brightest spot of the service economy, posting the
strongest increases in both new business and output during May.
Q 1) Discuss the reasons for spike seen in Service sector growth.
1. Service sector is the seeing growth after the ease in the economic activities. Reasons for
growth of services sector is given below:
a) As per Pollyanna De Lima, economics associate director of S&P global market

intelligence reopening of the economy after the halt of activities in the region due to Covid
control measures.
b) Businesses from abroad have declined in the country due to raised restriction in
movement of goods and services in and out of the country. Demand for domestic services
have risen sharply. This lead to the spike of service sector growth.
Reopening of economy and less global interference have resulted in the growth of service
sector.
Q 2) Discuss the impact of inflation on the public.
2. Inflation is on rise for the twenty-third month in May as per the survey of S&P global
market intelligence. Inflation are hitting the public the most. Impacts of inflation on public
are as follows:

a) Restriction on Businesses Optimism: Due to continuous rise in inflation businesses are
restricted and not reducing prices in optimism of more rise in demand.
b) Burden of high cost of goods: Input prices are increasing which are resulting high selling
price. Inflation has deteriorated the purchasing power of currency. Public having less
disposable income due to rise of inflation in the economy.
c) Unemployment: Service providers due to threat of cost push inflation are refrained from
employing new workers. Unemployment is rising effecting public at large.
Monetary and fiscal measures to contain the inflation must be taken by the regulators and
government for better recovery of the economy.
Q 3) Discuss the steps taken by service firms.
3. Service firms after the easing of economic activities were optimistic about the growth of
service sector as per Lima. Some steps taken by service firms amid the high inflation are as
following:
a) Despite the optimism about the growth of economy, service firms were concerned about
the dampening of economy again due to the high inflation. Sentiments of large number of
people on the lower side will eventually result in decline in growth.
b) Pressure of increased prices of food, fuel, input, labour and transportation costs are
passed on to the consumer.
c) Restriction on businesses expansion by the service firms have resulted in decline in

employment rate.
Public with decreasing purchasing price and unemployment fear are suffering most due to
the actions of service firms.

5/4/23, 10:47 AM Paper 2 - 4 May - 8 to 9 PM-complete-test
Paper 2 - 4 May - 8 to 9 PM
Paper 2
Q.1) As per Economic Survey 2022-23, which of the following is the second largest major source of
external financing for India?
[A] Service export
[B] Merchandise export
[C] Commercial Borrowings
[D] Remittances
[E] None of the above
Q.2) As per Economic Survey 2022-23, In-Principal Approval had been granted to 56 projects with total
project cost of ₹57,870.1 crore under the__________ , from 2014-15 to 2022-23.
[A] Viability Gap Funding (VGF) Scheme
[B] IIPDF Scheme
[C] National Infrastructure Pipeline
[D] National Monetisation Pipeline

[E] GatiShakti
Q.3) Corpus fund titled India Infrastructure Project Development Fund (IIPDF) (mentioned in Economic
Survey 2022-23) has been created by which of the following departments/organizations?
[A] Department for Promotion of Industry & Internal Trade
[B] Department of Economic Affairs

[C] Confederation of Indian Industry
[D] 1 and 3
[E] 2 and 3
Q.4) As per Economic Survey 2022-23, 1009 projects worth _______ have been completed under the
National Infrastructure Pipeline.
[A] Rs 2.5 lakh crore

[B] Rs 3.5 lakh crore
[C] Rs 7.5 lakh crore

https://edutap.learnyst.com/admin/products/all-questions/394923 1/35
[D] Rs 10.5 lakh crore
[E] Rs 5.5 lakh crore
Q.5) As per Economic Survey 2022-23, the total enrolment in higher education has increased to nearly
_______ in FY21.
[A] 5.1 crore
[B] 4.1 crore
[C] 3.8 crore
[D] 4.5 crore
[E] 5.3 crore
Q.6) As per Union Budget 2023-24, Deduction from capital gains on investment in residential house under
sections 54 and 54F to be capped at ________ for better targeting of tax concessions and exemptions.
[A] Rs 15 crore
[B] Rs 10 crore
[C] Rs 20 crore
[D] Rs 2 crore
[E] Rs 5 crore
Q.7) As per Union Budget 2023-24, Highest surcharge rate to reduce from 37 per cent to 25 per cent in the
new tax regime. This will result in reduction of the maximum personal income tax rate to what percentage?
[A] 39%
[B] 42%
[C] 40%
[D] 37%
[E] 38%
Q.8) Which of the following statements is/are correct with regards to the Revamped credit guarantee
scheme for MSMEs (mentioned in Union Budget 2023-24)?
A. Scheme will take effect from 1st April 2023.
B. Scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore.
C. It will also reduce the cost of the credit by about 1.5%.
[A] Both A & B
[B] Both B & C
[C] Both A & C

[D] Only A
[E] All of the above
Q.9) As per Union Budget 2023-24, Phase-3 of the E-Courts project to be launched with an outlay of
________ for efficient administration of justice.
[A] Rs. 4,000 crore
[B] Rs. 9,000 crore

[C] Rs. 2,000 crore
[D] Rs. 7,000 crore
[E] Rs. 5,000 crore
Q.10) As per Union Budget 2023-24, India is the ______ producer and ______ largest exporter of ‘Shree
Anna’ in the world.
[A] 2nd largest; 2nd
[B] largest; 2nd
[C] largest; 3rd
[D] 2nd largest; 3rd
[E] 3rd largest; 3rd
Q.11) Before 2004 for Govt. Employees, ________________ was the Nodal department for formulation of policies
relating to pension & other retirement benefits of Central Government Pensioners/Family Pensioners.
[A] Department of Pension & Pensioners 'Welfare
[B] Ministry of Finance
[C] EPFO
[D] PFRDA
[E] None of the Above
Q.12) Which of the following statements is correct in relation to the Countercyclical capital buffers?
1. It is calculated as a fixed percentage of a bank’s risk-weighted loan book.
2.With the CCCB, banks are required to set aside a higher portion of their capital during good times when
loans are growing rapidly.
3. The CCCB has to be in the form of equity capital
[A] 1 only
[B] 1 and 3
[C] 2 and 3
[D] 1 2 and 3
Q.13) Travel insurance is a type of general insurance product for those people who travel a lot, be it within
India or be it a foreign trip. While travelling, a medical or non-medical emergency may arise. This may result in
a financial crisis. To avoid such a situation, travel insurance is taken.
In the same regard, which of the following part is not covered in the travel insurance
[A] Loss of Baggage and Medical emergency
[B] Cancellation of flight and Delay in the trip
[C] Accidental death and Injury due to adventure sports
[D] Hijacking
Q.14) Certificate of Deposit are issued by which of the following ?
[A] Banks
[B] Government of India
[C] Individuals
[D] RBI
Q.15) How many types of Guaranteed minimum pensions are available under APY?
[A] 5
[B] 10
[C] 15
[D] 1
[E] 3
Q.16) ASBA means “Application Supported by Blocked Amount”. ASBA is an application by an investor containing
an authorization to Self-Certified Syndicate Bank (SCSB)to block the application money in the bank account, for
subscribing to an issue.
Which of the following was introduced as the means for making payment for retail investors in the ASBA process
from 2018?
[A] NEFT
[B] RTGS
[C] UPI
[D] Payment e-wallets
[E] IMPS
Q.17) __________"X"__________ promise protection from risk in the event of death of the insured during the
policy term as well as an assured sum upon the maturity of the policy
Identify X from the following options
[A] Term Life Insurance
[B] Whole life Insurance
[C] Endowment policy
[D] Money Back Plans
Q.18) Identify the type of cheque, wherein no cash withdrawal can be done. The amount can only be
transferred from the drawer’s account to the payee’s account. Any third party can visit the bank to submit the
cheque.
[A] Bearer Cheque
[B] Order Cheque
[C] Crossed Cheque
[D] Account Payee Cheque
[E] Stale Cheque
Q.19) Who among the following is/ are the major suppliers of trading instruments in the capital markets ?
[A] Government and corporations

[B] Liquid Corporations
[C] Instrumental Corporations
[D] Manufacturing Corporations
Q.20) Which of the following is true regarding the taxation under EPS?
1) Lump sump amount is taxable
2) Pension is also Taxable
3) Pension is non Taxable

[A] 1 and 2 only
[B] 1 and 3 only
[C] Only 1
[D] Only 2
[E] None is correct
Q.21) FEDAI stands for Foreign Exchange Dealers Association of India. FEDAl is a non-profit making body,
formed in _____"X"____ with the approval of Reserve Bank of India, consisting of Authorized dealers as
members.
[A] 1968
[B] 1958
[C] 1978
[D] 1948
Q.22) One of the key recommendations of the Dr. Prasanna Kumar Mohanty Comittee is to to increase the initial
paid-up voting equity share capital/ net worth required to set up a new Universal Banks to ________
[A] 200 Core

[B] 1000 Crore
[C] 500 Crore
[D] 5000 Crore
[E] 10,000 Crore
Q.23) Which of the following type of insurance is mandatory in India?

[A] Health Insurance
[B] Motor Insurance
[C] Travel Insurance
[D] Life Insurance
Q.24) Which of the following statement(s) is/are incorrect ?

[A] Gold is some of the time depicted as a non income acquiring resource
[B] The opportunity cost of holding gold might be seen as practically identical to a protection premium
[C] It gives a type of protection against some implausible in any case, in the event that it happens,
profoundly harming occasion.
[D] Gold has kept up its incentive as far as genuine buying power over the long haul
Q.25) Which of the following is the benchmark index of NSE and what is the market cap of small cap funds ?
[A] NIFTY and small - cap companies have a market cap below Rs 5,000 Cr
[B] NIFTY AUTO and small- cap companies have a market cap below Rs 20,000Cr
[C] SENSEX and small -cap companies have a market cap below Rs 20,000 Cr
[D] NIFTY METAL and small -cap companies have a market cap below Rs 5,000 Cr
[E] NIFTY BANK and small- cap companies have a market cap below Rs 5,000 Cr
Q.26) Which of the following terms given below is not related to a stock exchange?
[A] NAV
[B] NSE
[C] KPO
[D] IPO
[E] FPO
Q.27) _______"X"_________ is the amount which the insurance company would pay to the policy-holder, if he
wants to discontinue the policy before the date of its maturity.
Identify X from the following options.
[A] Sum assured
[B] Salvage value
[C] Surrender value
[D] Depreciate value
Q.28) SBI General Insurance company issues a life Insurance policy of INR 55,000 to Mr. Kunal, Now regardless
of the age, the moment Mr. Kunal dies, the insurer will pay INR 55,000 to the nominee of the Mr. Kunal.
Which of the following life insurance policy has been taken by Mr. Kunal?
[A] Term Life Insurance
[B] Whole life Insurance
[C] Endowment policy
[D] Money Back Plans

Q.29) Which department along with Department of Financial services and Ministry of Health & Family Welfare
has collaborated with NPCI for E-Rupi development?
[A] Ministry of Finance
[B] National Health Authority
[C] Reserve Bank of India
[D] Association of Mutual Funds of India
Q.30) Department of Pension & Pensioners’ Welfare has launched an online Pension Sanction & Payment
Tracking System called ______"X"______. The system provides online tracking of pension sanction and payment
process by the individual as well as the administrative authorities.
Identify "X"
[A] Anubhav Portal
[B] Jeevan Pramaan
[C] Bhavishya Portal
[D] Sankalp platform
Q.31) The International Financial Services Center Authority under the IFSCA Act 2019 provides for delegation
of the powers of the International Financial Services Center Authority to which among the following?
[A] Any member or officer of the Authority except Ex-officio members
[B] Any member or officer of the Authority
[C] Any member or officer of the Authority except Part-time members
[D] Any member or officer of the Authority except members nominated by Appropriate Regulators as per the
IFSCA Act 2019
[E] Only members of the Authority
Q.32) The International Financial Services Center Authority Act 2019 provides for forming Committees of
Members. Which among the following statement is correct in this regard?
[A] The International Financial Services Center Authority is allowed to form Committees and delegate only its
powers to it
[B] The International Financial Services Center Authority is allowed to form Committees and delegate only its
functions to it
[C] The International Financial Services Center Authority is allowed to form Committees and delegate its
powers and functions to it
[D] The power of IFSCA to delegate its powers is as specified by the Rules of the Central Government
Q.33) The International Financial Services Center Authority can make regulations, as per the IFSCA Act 2019,
with respect to which among the following matters?
1. The manner of providing information to the Performance Review Committee.
2. The maintenance of the website.
3. The foreign currency in which transaction of financial services in International Financial Services Centres
may be conducted under section 20 of the Act.
[A] 1 only
[B] 2 and 3 only
[C] 1 and 2 only
[D] 1 and 3 only
[E] 1, 2 and 3
Q.34) Any order issued by the Central Government to remove difficulties in the implementation of
the International Financial Services Center Authority Act 2019 is to be laid before which among the following?
[A] President of India
[B] Each house of the Parliament
[C] State Legislature of the host state
[D] Lok Sabha only
[E] Chairperson of the International Financial Services Center Authority
Q.35) Which among the following are considered as Public Servants under the International Financial Services
Center Authority Act 2019?
1. Members of IFSCA
2. Officers of IFSCA
3. Employees of IFSCA
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1 and 3 only
[E] 1, 2 and 3
Q.36) Which among the following is protected under the International Financial Services Center Authority Act
2019 from legal proceedings for Acts done in good faith?
1. Members of IFSCA
2. Officers of IFSCA
3. Employees of IFSCA
[A] 1 and 2 only

[B] 2 only
[C] 2 and 3 only
[D] 1 and 3 only
[E] 1, 2 and 3
Q.37) Which among the following statement(s) is/are correct with respect to the power of the Central
Government, under IFSCA Act 2019, to modify the provisions of certain enactments other than IFSCA Act
2019?
1. The Central Government may direct that any of the provisions of any Central Act, other than IFSCA Act
2019, shall not apply to financial products in an International Financial Services Centre.
2. The Central Government may direct that any of the provisions of any Central Act, other than IFSCA Act
2019, shall apply with modifications to financial institutions in an International Financial Services Centre.
3. The Central Government may direct that any of the provisions of any State Act shall not apply to financial
products in an International Financial Services Centre.
[A] 1 only
[B] 3 only
[C] 1 and 2 only
[D] 2 and 3 only
[E] 1, 2 and 3
Q.38) Section 33 of the International Financial Services Center Authority Act 2019 provides for amendment to
which among the following Schedules of the IFSCA Act 2019?
[A] Schedule 1
[B] Schedule 2
[C] Schedule 4
[D] Schedule 3
[E] Schedule 5
Q.39) The number of international exchanges operational in the IFSC in GIFT City, Gujarat are
____________.
[A] 1
[B] 2
[C] 3
[D] 4
[E] 5
Q.40) Which among the following is part of the Vision of the International Financial Services Centres
Authority (IFSCA)?
1. Provide world-class regulatory environment

2. Develop IFSCs into leading Global Financial Centres
3. Primary focus on India's economic development
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1 and 3 only

[E] 1, 2 and 3
Q.41) Which among the following International Stock Exchange(s) is/are present in the GIFT IFSC, Gujarat?
1. India International Exchange (IFSC) Limited (India INX)
2. NSE IFSC Limited (NSE IFSC)
3. BSE IFSC Limited (BSE IFSC)

[A] 1 and 2 only
[B] 2 and 3 only
[C] 1 and 3 only
[D] 1 only
[E] 1, 2 and 3
Q.42) Which among the following is/are the entity(ies) which can establish an Insurance Office in an IFSC?
1. Indian Insurer
2. Foreign Insurer
3. Indian Re-insurer
4. Foreign Re-insurer
[A] 1, 2 and 3 only

[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 3 and 4 only
[E] 1, 2, 3 and 4
Q.43) What was the rank of GIFT City Gujarat in the overall ranking of the Global Financial Centres Index
2022?
[A] 68th
[B] 12th
[C] 74th
[D] 75th
[E] 70th
Q.44) The rank of Mumbai in the Fintech offering among the Financial Centres of the world as per the
Global Financial Centres Index 2022 is _____________.
[A] 10
[B] 5
[C] 58
[D] 49
[E] 76
Q.45) A Bullion Depository to be eligible to have recognition granted to it by the IFSCA has to have a net worth
of not less than _____________, on a continuous basis;
[A] 5 million USD
[B] 10 million USD
[C] 15 million USD
[D] 20 million USD
[E] 25 million USD
Q.46) Any mergers of a Finance Company which results in its change in control of at least ________________ of
total share capital, or of business decisions under an agreement, shall be subject to prior approval and such
other requirements as may be specified by the Authority
[A] Five per-cent
[B] Ten per-cent
[C] Fifteen per-cent
[D] Twenty per-cent
[E] Twenty-Five per-cent
Q.47) The categories under which a Fund Management Entity (FME) can seek registration in an IFSC is/are
which among the following?
1. Authorised FME
2. Registered FME (Non-Retail)
3. Registered FME (Retail)
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
[E] 1, 2 and 3
Q.48) The International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021
relates to which among the following Sections of the Securities and Exchange Board of India Act, 1992?
[A] Section 13
[B] Section 28C
[C] Section 25
[D] Section 23G
[E] Section 35
Q.49) A start-up company shall be eligible to list its specified securities on a recognised stock exchange in an
IFSC if the offer document of the company is filed within a period of __________ years from the date of
incorporation.
[A] 2 years
[B] 5 years
[C] 10 years
[D] 3 years
[E] 12 years
Q.50) The period of recognition granted to a market infrastructure institution in an IFSC by the IFSCA shall be
permanent or for such period not less than _____________as may be specified by the Authority.
[A] One year
[B] Two year
[C] Three year
[D] Four year
[E] Five year
Answers
Paper 2
Q.1)D Q.2)A Q.3)B Q.4)E Q.5)B Q.6)B Q.7)A Q.8)A Q.9)D Q.10)B Q.11)A Q.12)D
Q.13)E Q.14)A Q.15)A Q.16)C Q.17)C Q.18)C Q.19)A Q.20)A Q.21)B Q.22)B Q.23)B
Q.24)A Q.25)A Q.26)C Q.27)C Q.28)B Q.29)B Q.30)C Q.31)B Q.32)C Q.33)E Q.34)B
Q.35)E Q.36)E Q.37)C Q.38)B Q.39)B Q.40)E Q.41)A Q.42)E Q.43)D Q.44)D Q.45)C
Q.46)D Q.47)E Q.48)B Q.49)C Q.50)A
Explanations
Paper 2
Q.1) Explanation:
The correct answer will be option D
● India is the largest recipient of remittances in the world receiving US$ 100 bn in 2022.
● Remittances are the second largest major source of external financing after service export.
Q.2) Explanation:
· As per Economic Survey 2022-23, In-Principal Approval had been granted to 56 projects with total
project cost of ₹57,870.1 crore under the Viability Gap Funding (VGF) Scheme, from 2014-15 to 2022-23.
Hence the correct answer will be option A
Q.3) Explanation:
· Corpus fund titled India Infrastructure Project Development Fund (IIPDF) (mentioned in Economic
Survey 2022-23) has been created by Department of Economic Affairs.
Hence the correct answer will be option B
Q.4) Explanation:
· As per Economic Survey 2022-23, 1009 projects worth Rs 5.5 lakh crore have been completed under
the National Infrastructure Pipeline.
Hence the correct answer will be option E
Q.5) Explanation:
· As per Economic Survey 2022-23, the total enrolment in higher education has increased to nearly 4.1
crore in FY21.
Q.6) Explanation:
· As per Union Budget 2023-24, deduction from capital gains on investment in residential house under
sections 54 and 54F to be capped at Rs 10 crore for better targeting of tax concessions and exemptions.
Q.7) Explanation:
· As per Union Budget 2023-24, highest surcharge rate to reduce from 37 per cent to 25 per cent in the
new tax regime. This will result in reduction of the maximum personal income tax rate to 39%.
Q.8) Explanation:
· Revamped credit guarantee scheme for MSMEs to take effect from 1st April 2023 through infusion of Rs
9,000 crore in the corpus.
· This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce
the cost of the credit by about 1 per cent.
Q.9) Explanation:
· As per Union Budget 2023-24, Phase-3 of the E-Courts project to be launched with an outlay of Rs.
7,000 crore for efficient administration of justice.
Hence the correct answer will be option D
Q.10) Explanation:
· As per Union Budget 2023-24, India is the largest producer and 2nd largest exporter of ‘Shree Anna’
in the world.
Q.11) Explanation:
Before 2004, it Department of Pension & Pensioners 'Welfare under Ministry of Ministry of
Personnel Public Grievances and Pensions, which was acting as the regulatory body of NPS
and later PFRDA become the regulatory body of the NPS. Hence, Option A is the correct
answer.
The Department of Pension & Pensioners' Welfare is the nodal department for formulation of
policies relating to pension and other retirement benefits of Central Govt. employees covered
under CCS (Pension) Rules, 1972 Apart from formulation of pension policy for the Central Govt.
Pensioners/Family Pensioners, it also seeks to promote pensioners welfare and serves as a
forum for the redressal of Pensioners' grievances.
All other options are incorrect.
Q.12) Explanation:
Following Basel-III norms, central banks specify certain capital adequacy norms for banks in a
country. The CCCB is a part of such norms and is calculated as a fixed percentage of a bank’s
risk-weighted loan book. Hence, Statement 1 is correct.
However, one key respect in which the CCCB differs from other forms of capital adequacy is
that it works to help a bank counteract the effect of a downturn or distressed economic
conditions.
With the CCCB, banks are required to set aside a higher portion of their capital during good
times when loans are growing rapidly, so that the capital can be released and used during bad
times, when there’s distress in the economy. Hence, Statement 2 is correct.
The CCCB is supposed to be in the form of equity capital, and if the minimum buffer
requirements are breached, capital distribution constraints such as limits on dividends and
share buybacks can be imposed on the bank. Hence,Statement 3 is correct.
Therefore, Option D is the correct answer. All other options are incorrect.
Q.13) Explanation:
The correct answer will be option E, because all the above mentioned events are covered under travel
insurance.
Travel Insurance
Travel insurance is a type of general insurance product for those people who travel a lot, be it within India or
be it a foreign trip. While travelling, a medical or non-medical emergency may arise. This may result in a
financial crisis.
To avoid such a situation, travel insurance is taken. Travel insurance policy protects you from losses suffered
due to:
1. Delay in flight
2. Loss of Baggage
3. Cancellation of flight
4. Delay in the trip
5. Loss of passport
6. Hijacking
7. Medical emergency
8. Accidental death
Q.14) Explanation:
A certificate of deposit (CD) is a time deposit with a bank. CDs are generally issued by commercial banks,
but they can be bought through brokerages. A certificate of deposit are nothing but money market
instruments that are issued by banks and select financial institutions in lieu of the money that is deposited.
Certificates of deposit are like fixed deposits (FDs) but the biggest difference between the two is that CDs,
being in bearer form, are transferable and tradable while FDs are not. They bear a specific maturity date,
a specified interest rate. Like all time deposits, the funds may not be withdrawn on demand like those in a
checking account.
Hence, option A is the correct answer.
Q.15) Explanation:
Minimum guaranteed pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per
month will start after attaining the age of 60 years depending on 2 factors:
Amount of Contribution
Age at the Entry
This can be understood with the following image:
Hence, Option A is the correct answer. All other options are incorrect.
Q.16) Explanation:
In 2018 SEBI decided to offer UPI as a means for making payment for retail investors in the ASBA process. The
idea was to further speed up the process and bring listing time from 6 days to 3 days after closure of issue. Hence,
option C is the correct answer.
UPI is an instant payment system developed by the National Payments Corporation of India (NPCI). It allows instant
transfer of money between any two person’s bank accounts.
Q.17) Explanation:
The correct answer will be option C

Endowment policy - Unlike term policies endowment policies promise not only to pay the policy face amount
on the death of the insured during a fixed term of years, but also to pay the full-face amount at the end of the
term if the insured survives the term.
An endowment policy has the following features:
A - Endowment plans promise protection from risk in the event of death of the insured during the policy
term as well as an assured sum upon the maturity of the policy. In this type of policy, the maturity of the
policy is usually chosen to coincide with the retirement of the person.
B - These policies are issued for specific terms chosen by the proposer who can choose the duration of the
policy which may be 10, 15, 20 or 30 years. Where the duration is short the premium involved is higher. It is to
be noted that whether the assured meets a premature death or not the full amount of the policy has to be
paid by the insurance company provided the premiums have been paid as stipulated in the policy.
Q.18) Explanation:
The correct answer will be option C
Crossed Cheque - In this type of cheque, no cash withdrawal can be done. The amount can only be
transferred from the drawer’s account to the payee’s account. Any third party can visit the bank to submit
the cheque. In case of a crossed cheque, the drawer must draw two lines at the left top corner
Account Payee Cheque - This is the same as the account payee cheque but no third-party involvement is
required. The amount shall be transferred directly to the payee’s account number. To ensure that it is an
account payee cheque, two lines are made on the left top corner of the cheque, labelling it for “A/C PAYEE”.
Q.19) Explanation:
The major suppliers of trading instruments in Capital markets are Government and Corporations. The
government issues long term bonds and notes so as to meet their debt obligations. The corporations enter
capital market to fund their investment opportunities.
Hence, option A is the correct answer.
Q.20) Explanation:
1. If the balance amount in EPF is withdrawn before 5 years, then TDS @10% is deducted.
2. Pension and lump-sum amount both are taxable when received, if Pension is received after
58 years of age.
Hence, Statement 3 is incorrect. Therefore, Option A is the correct answer.
Q.21) Explanation:
FEDAI stands for Foreign Exchange Dealers Association of India.
FEDAl is a non-profit making body, formed in 1958 with the approval of the Reserve Bank of
India, consisting of Authorized dealers as members. Hence Option B is the correct answer.
In terms of RBI directives, all authorized dealers are members of FEDAI and it is mandatory for
them to follow the guidelines/directives issued by FEDAI.
Categories of AD are as follows -
‘Authorized Dealer (AD) Category I’ means entities which are authorized by the
Reserve Bank to carry out all permissible current and capital account transactions as per
directions issued from time-to-time.
This includes commercial banks , state co-op banks, urban co-op banks.
‘Authorized Dealer (AD) Category II’ means entities which are authorized by the
Reserve Bank to carry out specified non-trade related current account transactions, all the
activities permitted to Full Fledged Money Changers and any other activity as decided by
the Reserve Bank and shall include (i) Upgraded FFMCs; (ii) Select Regional Rural Banks
(RRBs); (iii) Select Urban Cooperative Banks (UCBs); and (iv) Other entities.
‘Authorized Dealer (AD) Category III’ means entities which are authorized by the
Reserve Bank to carry out specific foreign exchange transactions incidental to their
business / activities
‘Full Fledged Money Changer (FFMC)’ is a money changer authorized to purchase
foreign exchange from non-residents visiting India and residents, and to sell foreign
exchange for private and business travel purposes only.
Q.22) Explanation:
RBI has constituted an Internal Working Group (IWG) to review the extant guidelines on ownership
and corporate structure for Indian private sector banks, under the chairmanship of Dr. Prasanna
Kumar Mohanty.
One of the key recommendations of the committee was to increase minimum initial capital
requirement for licensing of Universal Banks
Thereby the committee recommended to increase the initial paid-up voting equity share capital/
net worth required to set up a new Universal Banks, may be increased to ₹1000 crore (from
present ₹500 crore). Hence Option B is the correct answer.
Q.23) Explanation:
Motor insurance is mandatory in India as per the Motor Vehicles Act, 1988. Every vehicle that is used on public
roads must be insured against third-party liability. Hence, Option B is the correct answer.
Q.24) Explanation:
Gold is some of the time depicted as a non income acquiring resource. This is false. There is a
gold loaning business sector and gold can likewise be exchanged to produce benefits. There might
be an "open door cost" of holding gold be that as it may, in a universe of low financing costs, this is
not exactly is frequently thought. Different focal points of gold may very much balance any such
expenses.
Therefore, option A is the correct answer.

Q.25) Explanation:
Market Capitalization is the market value of all the shares that are held by the shareholders of the
company. Based on the market capitalization, companies are classified into three different categories
-
a) Large- cap Companies - According to SEBI’s rules, all companies that are listed on the stock
exchanges are ranked based on their market cap. The top 100 companies are categorized as large
cap companies. The market cap of these companies are at around Rs 20,000 Cr or more.
b) Mid- cap Companies - As per SEBI’s classification, the companies ranking from 101 to 250 in
terms of market capitalization are known as mid-cap companies. Their market cap generally tends to
range from Rs 5,000 to Rs 20,000 Cr .
c) Small - cap Companies - SEBI’s rules state that all the companies that are ranked from the 251st
position onwards in terms of market cap are categorized as small-cap companies. In terms of market
cap, these companies generally come below Rs 5,000 Cr.
Therefore, option A is the correct answer. All other options are incorrect.
Q.26) Explanation:
KPO is not a term of stock exchange. KPO means Knowledge Process Outsourcing. KPO is all about working
with contractors whose main offering is knowledge — analytical or technical skills. Hence, option C is the
correct answer.
Additional information :-
NAV (Net Asset Value) is the net value of an investment fund's assets less its liabilities, divided by the number of
shares outstanding.
NSE ( National Stock Exchange) is India's largest financial market. The National Stock Exchange of India Limited
was the first exchange in India to provide modern, fully automated electronic trading.
IPO is the selling of securities to the public in the primary market. An unlisted company (A company which is not
listed on the stock exchange) announces initial public offering (IPO) when it decides to raise funds through sale of
securities or shares for the first time to the public.
FPO a process by which a company, which is already listed on an exchange, issues new shares to the investors or
the existing shareholders. FPO is used by companies to diversify their equity base.
Q.27) Explanation:
Surrender value of policy - Surrender value is the amount which the insurance company would pay
to the policy-holder, if he wants to discontinue the policy before the date of its maturity, whereas, Sum
assured of policy, is the amount for which insurance policy is taken. Hence, Option C is the correct
answer.
Q.28) Explanation:
The correct answer will be option B
Whole life Insurance
Whole life insurance is intended to provide insurance protection over one's entire lifetime. It provides
for the payment of the face amount upon the insured's death regardless of when death occurs.
Universal life policies can function as whole life insurance if they have sufficient cash value; The face
amount payable under Whole life policies typically remain at the same level throughout the policy
duration, although dividends are often used to increase the total amount paid on death. In most
policies, the gross premium also remains at the same level throughout the premium payment period
with some exceptions.
Q.29) Explanation:
The National Payments Corporation of India (NPCI), which oversees the digital payments
ecosystem in India, has launched e-RUPI, a voucher-based payments system to promote cashless
transactions.
It has been developed in collaboration with the Department of Financial Services, Ministry of
Health & Family Welfare and National Health Authority.
Hence Option B is the correct answer.
The beneficiary of the service will receive the QR code or the SMS string on his/her phone.
The person should show this code or string at the service provider (like a hospital or PHC) where it
will be scanned by the merchant.
Then, a verification code will be sent to the beneficiary’s phone which would have to be shared
with the merchant, and the payment would be successful.
Currently, the government is using this facility for health services.
Some of the partner banks are ICICI Bank, SBI, Axis Bank, HDFC Bank, Bank of Baroda, Punjab National
Bank, Indus Ind Bank and Canara Bank.
Q.30) Explanation:
Bhavishya Portal
1. Department of Pension & Pensioners’ Welfare is working with a vision of ensuring active and
dignified life for pensioners.
2. Department of Pension & Pensioners’ Welfare has launched an online Pension Sanction &
Payment Tracking System called 'BHAVISHYA'. The system provides online tracking of pension
sanction and payment process by the individual as well as the administrative authorities.
Hence, Option C is the correct answer.
Additional Information:
Anubhav Portal - A platform for retiring employees to showcase significant achievements

made during their service period. While the retiring employees can look back with satisfaction
and a sense of fulfilment, this would also create a database of useful suggestions and
information. Hence, Option A is incorrect.
Jeevan Pramaan is a biometric enabled digital service for pensioners. Pensioners of Central
Government, State Government or any other Government organization can take benefit of this
facility. Hence, Option B is incorrect.
SANKALP- Skill Acquisition and Knowledge Awareness for Livelihood Promotion (“SANKALP”)
is a programme of the Ministry of Skill Development with loan assistance from the World Bank.
It aims to improve short term skill training qualitatively and quantitatively through strengthening
institutions, bring in better market connectivity and inclusion of marginalised sections of the
society. SANKALP was launched on 19th January 2018 and has a tenure till March
2023. Hence, Option D is incorrect.
Q.31) Explanation:
Section 23 of the International Financial Services Center Authority Act 2019
Delegation of powers
(1) The Authority may, by general or special order in writing, delegate to any Member or officer of the
Authority subject to such conditions, if any, as may be specified in the order, such of its powers and functions
under this Act (except the powers under section 28) as it may deem necessary.
(2) The Authority may, by a general or special order in writing, also form committees of the Members and
delegate to them the powers and functions of the Authority, as may be specified by regulations.
Hence option B is correct.
Q.32) Explanation:
Delegation of powers
(1) The Authority may, by general or special order in writing, delegate to any Member or officer of the
Authority subject to such conditions, if any, as may be specified in the order, such of its powers and
functions under this Act (except the powers under section 28) as it may deem necessary.
(2) The Authority may, by a general or special order in writing, also form committees of the Members
and delegate to them the powers and functions of the Authority, as may be specified by regulations.
Hence option C is correct.
Q.33) Explanation:
Power to make regulations
(1) The Authority may, by notification, make regulations consistent with this Act and the rules made
thereunder for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide
for all or any of the following matters, namely:--
(a) the time and place of meetings and the rules of procedure in regard to transaction of business at such
meetings under sub-section (1) of section 8;
(b) the salaries and allowances and other terms and conditions of service of officers and other employees of
Authority under sub-section (2) of section 11;
(c) the manner in which the Authority may perform its functions under sub-section (7) of section 13;
(d) the manner of providing information to the Performance Review Committee under sub-section (4) of
section 17;
(e) the maintenance of the website or any other universally accessible repository of electronic information
under sub-section (1) of section 18;
(f) the foreign currency in which transaction of financial services in International Financial Services Centres
may be conducted under section 20;
(g) the powers and functions of the Authority which may be delegated under sub-section (2) of section 23;
(h) any other matter which is required to be or may be, specified by regulations.
Hence option E is correct
Q.34) Explanation:
Power to remove difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order,
published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may
appear to be necessary for removing the difficulty: Provided that no order shall be made under this section
after the expiry of five years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House
of Parliament.
Hence option B is correct
Q.35) Explanation:
Members, officers and employees of the Authority to be public servants.
The Members, officers and employees of the Authority shall be deemed, when acting or purporting to
act in pursuance of any of the provisions of this Act, to be public servants within the meaning of
section 21 of the Indian Penal Code.
Hence option E is correct.
Q.36) Explanation:

Protection of action taken in good faith
No suit, prosecution or other legal proceedings shall lie against the Central Government or the Authority or its
Members, officers or other employees, for anything which is done, or intended to be done, in good faith
under this Act.
Hence option E is correct.
Q.37) Explanation:
Power to modify provisions of other enactments in relation to International Financial Services Centres
(1) The Central Government may, by notification, direct that any of the provisions of any other Central Act or
any rules or regulations made thereunder or any notification or order issued or direction given thereunder
(other than the provisions relating to making of the rules or regulations) specified in the notification--
(a) shall not apply to financial products, financial services or financial institutions, as the case may be, in an
International Financial Services Centre; or
(b) shall apply to financial products, financial services or financial institutions, as the case may be, in an
International Financial Services Centre with such exceptions, modifications and adaptations, as may be
specified in the notification. Hence option C is correct as State Act is not mentioned in the IFSCA Act.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of the session immediately following
the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the
notification or both Houses agree in making any modification in the notification, the notification shall not be
issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the
Houses.
Q.38) Explanation:
Amendment to certain enactments.
The enactments specified in the Second Schedule shall be amended in the manner specified therein.
Hence option B is correct
Q.39) Explanation:
Entities that have started operations from the GIFT IFSC
Presently, there are 13 banks including a foreign bank, 19 insurance firms and approximately 100 capital
market entities have set up office in the GIFT IFSC. There are two international exchanges
operational from this zone and runs 22 hours a day. Hence option B is correct.
Details of the key institutions are as follows:
· Banks: State Bank of India, ICICI Bank, HDFC Bank, IDBI Bank, Yes Bank, IndusInd Bank, Federal
Bank, Kotak Mahindra Bank, Bank of Baroda, RBL Bank, Axis Bank, Indian Bank and Standard Chartered
Bank.
· Insurance: New India Assurance (Direct Insurance), GIC Re (Reinsurance), ECGC, National Insurance
and approximately 16 Insurance intermediaries.
· Capital Market: India INX (International Exchange), NSE IFSC (International Exchange) along with
their Clearing Corporation. Intermediaries such as Edelweiss Financial Services, IIFL Securities, Globe
Capital, Philip Capital, Motilal Oswal, etc.
· Alternate Investment Funds (AIF), Investment Advisors, Custodian, Depositories, Trustee

companies, clearing banks are also part of the capital markets ecosystem.
· IT/ ITeS, Consultancy Units: BA Continuum (Bank of America), BeFree, Moon SEZ Consultants,
Exemplary Consultants, Cybage (IT company) and many other IT/ ITeS firms are operating out of SEZ zone
for exports of various services.
Q.40) Explanation:
The International Financial Services Centres Authority (IFSCA) was established on April 27, 2020, as a
unified financial regulator under the International Financial Services Centres Authority Act, 2019. It is
headquartered at Gujarat International Finance Tec-City (GIFT City), Gandhinagar in Gujarat.
· The Government of India set up IFSCA (hereinafter referred to as “the Authority”) to develop and
regulate financial services in the International Financial Services Centres (IFSCs) established in India with a
mandate to create a world-class ecosystem based on ease of doing business and best in class regulatory
system to make IFSCs in India a preferred global destination for international financial services.
· As a unified financial regulator, IFSCA adopts a holistic vision towards the development and regulation
of financial products, financial services, and financial institutions in IFSCs in India across the verticals of
banking, insurance, capital markets, pension, and funds.
· At present, the GIFT IFSC is the maiden International Financial Services Centre in India. Prior to the
establishment of IFSCA, the four domestic financial sector regulators viz. RBI, SEBI, IRDAI, and PFRDA
regulated the respective business areas within IFSC.
Vision
To provide world-class regulatory environment and develop IFSCs into leading Global Financial Centres
with a primary focus on India's economic development apart from serving as a regional and global
financial hub. Hence option E is correct.
Mission
To develop IFSCs into well-diversified and globally competitive financial hubs for international
banking, insurance, and capital market activities through a pro-business environment, duly supported by
a progressive regulatory architecture, state-of-the-art technology and infrastructure and talented financial
professionals, which serve both the Indian Economy and the region as a whole.
Goals & Objectives
1. To facilitate the development of a strong base of international financial services in the country
2. To promote IFSC as a dominant gateway for international capital flows into and out of India
3. To emerge as a regional and global hub for international financial services
4. To provide a state-of-the-art unified regulatory framework, with robust regulation and

supervisory technology aligned with international best practices
5. To develop a strong global-connect with leading international financial jurisdictions
Q.41) Explanation:
Market Infrastructure Institutions (MIIs) in IFSCs
Stock exchanges provide critical infrastructure and liquidity, which help investors and market participants
in buying and selling securities at fair market value. A stock exchange plays a key role for companies and
institutions to access capital from the market.
The regulated ecosystem ensures transparency and security, which help investors to maintain their
wealth safely, along with the opportunity to participate in the growth and business cycle of the
companies and of the country as a whole.
As on March 31, 2022, there are two international stock exchanges operational in IFSC namely,
India International Exchange (IFSC) Limited (India INX) and NSE IFSC Limited (NSE IFSC). Hence
option A is correct.
Further, an international bullion exchange namely India International Bullion Exchange IFSC Limited
(IIBX) has also been established in IFSC.
During the year, the Authority accorded renewal of recognition to NSE IFSC on May 29, 2021 and
India INX on December 29, 2021, for a period of one year each. IIBX was granted recognition for the
first time on December 09, 2021.
Q.42) Explanation:
Insurance Activities in IFSCs
The insurance industry plays a vital function in an economy by virtue of its role in covering major types
of risks, which include personal risk, business risk, among others.
· It also shapes the financial ecosystem by the amount of premium it underwrites, diversity of the
investments it makes, and magnitude of claims it services.
· To promote ease of doing business in IFSC, the Authority has issued the Regulations and
detailed Operating Guidelines for IFSC Insurance offices (IIOs) and IFSC Insurance Intermediary Offices
(IIIOs) covering all the regulatory and operational matters for the conduct of their business.
The IFSCA (Registration of Insurance Business) Regulations, 2021
The IFSCA (Registration of Insurance Business) Regulations, 2021 (IIO Regulations) provide for registration
of (re)insurers. Based on international best practices, these regulations are made very comprehensive and
business friendly. The regulations lay down the regulatory framework for entities offering insurance from
IFSC and other activities permitted to be carried out by them. An insurance and reinsurance company
intending to set up an office in IFSC is required to seek certificate of registration from the Authority under
IIO Regulations.
Salient features of IIO Regulations
The following are the features of the Regulations:
· Following entities may set up an Insurance office in IFSC:
o Indian Insurer or Re-insurer
o Foreign Insurer or Foreign Re-insurer. Hence option E is correct.
o Branch office of Foreign Re-insurer or Lloyd's India registered by IRDAI
o A Public Company
o An Insurance co-operative society
o A Body Corporate
o Society of Lloyds'
o Managing General Agent
· Managing General Agent (MGA) may be a body corporate incorporated outside India, or a company
incorporated under the Indian Companies Act, 2013 which has been authorized to do insurance business,
reinsurance business or both, based on binding agreement with foreign insurer or re-insurer. In case of
registration as MGA, the assigned capital, solvency, net owned fund requirements are to be complied by
relevant foreign (re)insurer.
· If an IIO is set up as a branch, it neither has to bring in any onshore capital nor have any onshore
solvency requirement. The specified assigned capital of USD 1.5 million can be maintained in home
jurisdiction. Further, subsidiaries or incorporated companies will require a paid-up capital of Rs 100 crore
for direct insurance and Rs 200 crore for reinsurance, as per
Insurance Act, 1938.
· IIOs can also be established in branch form and in that case, assigned capital and solvency to be
maintained at parent level.
· Foreign re-insurers desirous of setting up a branch office in the IFSC shall have reduced net owned
funds (NOF) requirement of INR 1000 Crores.
· All business transactions of IIO shall be in freely convertible foreign currency.
· Life Insurer in IFSC can cater to the:
o person resident in India (subject to the aggregate remittance including amount of premium not
exceeding the limits prescribed by RBI under the LRS from time to time).
o non-resident Indian (NRI)
o unit located in IFSCs
o unit located in SEZs,and
o person resident outside India
· General Insurers in IFSC can undertake following insurance business :

o risks of Units in IFSC
o risks of units situated in SEZs across India
o direct insurance from outside India (subject to local laws)
o direct insurance from DTA subject to provisions of the Insurance Act, 1938
o offshore insurance risks of exporters and importers, and
o overseas travel & health insurance for NRIs, PIOs and foreign residents/ nationals
· Reinsurers in IFSC can provide reinsurance support to the following :
o IIOs transacting direct insurance business in the IFSC
o IIOs transacting re-insurance business in the IFSC
o cedants based in India transacting direct insurers business (subject to extant regulatory framework)
o Indian re-insurers and FRBs based in India
o cedants / re-insurers based outside India
Q.43) Explanation:
Global Financial Centres Index
The Global Financial Centres Index (GFCI) is a ranking of the competitiveness of financial centres based on
over 29,000 financial centre assessments from an online questionnaire together with over 100 indices
from organisations such as the World Bank, the Organisation for Economic Co-operation and
Development (OECD), and the Economist Intelligence Unit.
GIFT City, Gujarat was ranked 75th (Overall) in the GFCI 32, the latest edition released in 2022.
Hence option D is correct
Q.44) Explanation:
Global Financial Centres Index
The Global Financial Centres Index (GFCI) is a ranking of the competitiveness of financial centres based on
over 29,000 financial centre assessments from an online questionnaire together with over 100 indices
from organisations such as the World Bank, the Organisation for Economic Co-operation and
Development (OECD), and the Economist Intelligence Unit.
· The reputation in the GFCI 2022, is given by examining the difference between the weighted average
assessment given to a financial centre and the overall rating in the index.
· The first measure reflects the average score a centre receives from financial professionals across the
world, adjusted for time, with more recent assessments given more weight.
· The second measure is the GFCI rating itself, which represents the assessments adjusted to take
account of the instrumental factors. If a centre has a higher average assessment than its GFCI rating, this
indicates that respondents’ perceptions of a centre are more favourable than the quantitative measures
alone suggest.
· Alongside the main GFCI index, we analyse financial centres in terms of their FinTech offering. Table
below shows the centres that received sufficient assessments to feature in the Fintech index, together
with the change in their Fintech rank and ratings since GFCI 31. Chinese and US centres continue to
feature strongly, reflecting their focus on technology development. San Francisco and Los Angeles have
moved into second and third positions in this edition, with London regaining a ranking place.
Hence option D is correct
Q.45) Explanation:
International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020
In exercise of the powers conferred by sub-section (1) of section 28 read with sub-section (1) of section 12 and
sub-section (1) of section 13 of the International Financial Services Centres Authority Act, 2019, the
International Financial Services Centres Authority has made these regulations to provide a framework for
recognition of bullion exchanges, its clearing corporations, depositories and vaults and for matters connected
therewith or incidental thereto.
Requirements for grant of recognition to a bullion depository
(1) The Authority shall take into account for considering grant of recognition to a bullion depository, all
matters which are relevant to the efficient and orderly functioning of a bullion depository and in particular,
the following, namely, whether bullion depository has —
(a) net worth of not less than 15 million USD, on a continuous basis; Hence option C is correct.
(b) bye-laws and legal documents are consistent with the objective of the bullion depository and for
protection of the interest of consumers;
(c) entered into an agreement with a vault manager which has necessary infrastructure, standards, for
safe storage of bullion and its security;
(d) established standards of encrypted transmission and reconciliation mechanisms for electronic
communications of data between the bullion depository, participants, issuers and issuers’ agents;
(e) the physical or electronic access to the premises, facilities, automatic data processing systems, data
storage sites and facilities including back up sites and facilities and to the electronic data
communication network connecting the bullion depository, participants, issuers and issuers’ agents is
controlled, monitored and recorded;
(f) made adequate arrangements including insurance for indemnifying the beneficial owners for any
loss that may be caused to such beneficial owners by the wrongful act, negligence or default of the
bullion depository or its participants or agents or of any of their employees.
Q.46) Explanation:
International Financial Services Centres Authority (Finance Company) Regulations, 2021
In exercise of the powers conferred by sub-section (1) of Section 28, read with sub-section (1) of Section 12
and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019, the
International Financial Services Centres Authority has made these regulations for Finance Company in the
International Financial Services Centres.
Currency of Operations
(1) A Finance Company or a Finance Unit, as the case may be, shall carry out its operation in a freely
convertible foreign currency and with such persons, whether resident or otherwise, as may be permitted by
the Authority: Provided that a Finance Company or a Finance Unit, as the case may be, may be permitted to
conduct such business transactions denominated in INR as may be specified by the Authority, subject to
settlement of those business transactions in freely convertible foreign currency.
(2) A Finance Company or a Finance Unit, as the case may be, shall be permitted to have an INR account out
of the freely convertible foreign currency to defray their administrative and statutory expenses and for such
other purposes as may be specified by the Authority.
(3) Every Finance Company or a Finance Unit shall maintain its balance sheet only in United States Dollars
(USD). A Finance Unit shall ensure that accounts pertaining to its transactions are kept distinct from that of its
parent.
Corporate Governance and Disclosure Requirements
(1) Every Finance Company and Finance Unit shall adhere to the guidelines on corporate governance and
disclosure requirements to be specified by the Authority.
(2) Any mergers, acquisitions, takeovers or change in management of a Finance Company, which results in
its change in control of at least twenty per-cent of total share capital, or of business decisions under an
agreement, shall be subject to prior approval and such other requirements as may be specified by the
Authority: Provided that mergers, acquisitions, takeovers or change in management in the parent of a Finance
Unit shall be in compliance to its registration requirements and shall be intimated to the Authority within a
period of 15 days from the date of such event. Hence option D is correct.
Q.47) Explanation:
International Financial Services Centres Authority (Fund Management) Regulations, 2021
and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019; Section
28C of the Securities and Exchange Board of India Act, 1992, the International Financial Services Centres
Authority has made these regulations.
Obligation to seek registration
(1) Any entity, intending to undertake the business of fund management under these regulations shall not
commence operations in an IFSC unless it has obtained a certificate of registration from the Authority as a
FME under any of the categories mentioned in sub-regulation (4).
(2) An entity desirous of obtaining a certificate of registration as a FME in IFSC shall submit an application form
in the format and manner as specified in First Schedule along with documents and application fees as may be
specified by the Authority.
(3) An application, which is not complete in all respects shall be liable to be rejected as specified under these
regulations.
(4) The FME shall seek registration under any of the following three categories:
(a) Authorised FME: The FMEs that pool money from accredited investors or investors investing above the
specified threshold by way of private placement and invest in start-ups or early-stage ventures through
Venture Capital Scheme. Family Investment Fund investing in securities, financial products and such other
permitted asset classes shall also seek registration as an Authorised FME.
(b) Registered FME (Non-Retail): The FMEs that pool money from accredited investors or investors investing
above a specified threshold by way of private placement for investing in securities, financial products and
such other permitted asset classes through one or more restricted schemes. Such FMEs shall also be able
undertake Portfolio Management Services (including for multi-family office) and act as investment manager
for private placement of Investment Trust (REITs and InvITs). Such FMEs shall also be able to undertake all
activities as permitted to Authorised FMEs.
(c) Registered FME (Retail): The FMEs that pool money from all investors or a section of the investors under
one or more schemes for investing in securities, financial products and such other permitted asset classes
through retail or restricted schemes. Registered FME (Retail) may act as investment manager for public offer
of Investment Trusts (REITs and InvITs). Such FMEs shall also be able to launch Exchange Traded Funds (ETFs).
Further, such FMEs shall also be able to undertake all activities as permitted to Authorised FMEs and
Registered FMEs (Non-retail). Hence option E is correct.
Reporting Requirements
(1) Every Finance Company and Finance Unit shall furnish information relating to its operations to the
Authority, in such manner, interval and form, as may be specified by the Authority.
(2) Every financial reporting by a Finance Company and a Finance Unit to the Authority shall be in US Dollar,
unless otherwise specified by the Authority.
Action in Case of Default

If a Finance Company or a Finance Unit, as the case may be, fails to fulfil any of the conditions subject to
which the registration under Regulation 3 has been granted, the Authority may take any action as it may
deem fit, including suspension, withdrawal or cancellation of registration, after giving an opportunity to the
entity, of making its submissions.
Q.48) Explanation:
International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021
and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019; Section 30
read with Section 28C of the Securities and Exchange Board of India Act, 1992; and Section 25 read with
Section 23G of the Depositories Act, 1996, the International Financial Services Centres Authority has made
these regulations. Hence option B is correct.
Registration requirements
(1) The Authority shall take into account all matters which it deems relevant for grant of registration to a
capital market intermediary and in particular the following, namely, whether:
a) the applicant or its principal officer has adequate past experience in the activities as a capital market
intermediary for which it is desirous of obtaining a certificate of registration or related activities;
b) the applicant has the necessary infrastructure like adequate office space, equipment, communication
facilities and manpower to effectively discharge its activities;
c) the applicant satisfies the eligibility criteria, net worth and fund allocation requirements, if applicable, as
specified in these regulations;
d) the applicant has satisfactory financial credit worthiness;
e) the applicant and its principal officers, directors/ partners/ designated partners, key managerial personnel
and controlling shareholders are fit and proper persons;
f) the applicant or any of its associates have in the past been refused certificate by the Authority and if so, the
ground for such refusal; and
g) the applicant or its principal officer is subject to any proceeding for breach of law by the Authority.
Q.49) Explanation:
International Financial Services Centres Authority (Issuance and Listing of Securities) Regulations,
2021
and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019; and
Section 30 and Section 11A read with Section 28C of the Securities and Exchange Board of India Act, 1992, the
International Financial Services Centres Authority has made these regulations
Initial Public offer - An issuer shall be eligible to make an initial public offer only if:
(a) the issuer has an operating revenue of at least USD 20 million in the preceding financial year; or
(b) the issuer has an average pre-tax profit, based on consolidated audited accounts, of at least USD one
million during the preceding three financial years; or
(c) any other eligibility criteria that may be specified by IFSCA. Explanation: The financial year in this regulation
shall mean financial year as followed by the issuer.
The issuer shall have commenced business at least three years prior to the date of filing of prospectus.
Eligibility of Startup company - A start-up company shall be eligible to list its specified securities on a
recognised stock exchange, with or without making a public offer, if it meets the following criteria:
(a) The offer document of the company should be filed within a period of ten years from the date of
incorporation/ registration; Hence option C is correct.
(b) The annual turnover of the company for any of the financial years since incorporation/ registration should
not have exceeded USD twenty million; and
(c) The company is working towards innovation, development or improvement of products or processes or
services, or it is a scalable business model with a high potential of employment generation or wealth creation.
Eligibility of Small and Medium Enterprise company - A small and medium enterprise company shall be
eligible to list its specified securities on a recognised stock exchange, with or without making a public offer, if
the annual turnover of the company for any of the financial years since incorporation/ registration should not
have exceeded USD fifty million.
Q.50) Explanation:
International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations,
2021
and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019; Sections
4, 8A and 31 read with Section 29B of the Securities Contracts (Regulation) Act, 1956; and Section 25 read with
Section 23G of the Depositories Act, 1996, the International Financial Services Centres Authority has made
these regulations.
Application for registration - A person seeking recognition as a market infrastructure institution in an
IFSC shall be a company incorporated in an IFSC in compliance with the shareholding requirements
prescribed under these regulations.
An application for recognition as a market infrastructure institution in an IFSC shall be submitted
to the Authority in the form and manner, and shall be accompanied by the fee as may be
prescribed by the Authority.
An application for recognition as a depository in an IFSC shall be accompanied by a copy of the
draft bye-laws of the depository.
Grant of recognition - (1) The Authority may, after considering the application and on being satisfied
that the applicant has complied with the conditions laid down in these regulations and is eligible to act
as a stock exchange, a clearing corporation, or a depository, as the case may be, grant recognition to
the applicant subject to such conditions as the Authority may deem fit;
(2) A recognised market infrastructure institution shall comply with such additional conditions as
may be imposed by the Authority from time to time.
The period of recognition granted to a market infrastructure institution shall be permanent or
for such period not less than one year as may be specified by the Authority. Hence option A is
correct.

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All India Mock Test

Maximum marks (100) Time (60 mins.)

1|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

2. Young India: a boon or bane?

3. Road ahead for Indian economy.

3|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

Future capital spending of the government in the economy is expected to be supported by

4. Why National Logistics Policy is Important?

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5|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

The euphoria of accepting death

6|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

7|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

Q 1) Discuss the reasons for spike seen in Service sector growth.

a) As per Pollyanna De Lima, economics associate director of S&P global market

Q 2) Discuss the impact of inflation on the public.

8|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

Q 3) Discuss the steps taken by service firms.

c) Restriction on businesses expansion by the service firms have resulted in decline in

9|P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

[B] Merchandise export

[C] Commercial Borrowings

[E] None of the above

[A] Viability Gap Funding (VGF) Scheme

[B] IIPDF Scheme

[C] National Infrastructure Pipeline

[D] National Monetisation Pipeline

[A] Department for Promotion of Industry & Internal Trade

[B] Department of Economic Affairs

[A] Rs 2.5 lakh crore

[C] Rs 7.5 lakh crore

[D] Rs 10.5 lakh crore

[E] Rs 5.5 lakh crore

[A] 5.1 crore

[B] 4.1 crore

[C] 3.8 crore

[D] 4.5 crore

[E] 5.3 crore

B. Scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore.

C. It will also reduce the cost of the credit by about 1.5%.

[A] Both A & B

[B] Both B & C

[C] Both A & C

[E] All of the above

[A] Rs. 4,000 crore

[B] Rs. 9,000 crore

[D] Rs. 7,000 crore

[E] Rs. 5,000 crore

[B] largest; 2nd

[C] largest; 3rd

[D] 2nd largest; 3rd

[E] 3rd largest; 3rd

Q.14) Certificate of Deposit are issued by which of the following ?

[B] Government of India

[E] None of the above

[A] Government and corporations

3) Pension is non Taxable

[A] 200 Core

Q.23) Which of the following type of insurance is mandatory in India?

Q.24) Which of the following statement(s) is/are incorrect ?

[E] None of the above

[B] Whole life Insurance

[C] Endowment policy

[D] Money Back Plans