Which of the following measures is SEBI likely to propose to improve liquidity in the secondary corporate bond market?
A Restricting trading to a few large institutional investors.
B Introducing mandatory market-making mechanisms for certain bonds.
C Increasing the minimum lot size for trading.
D Discontinuing electronic bidding platforms.
Answer: B
To improve liquidity in the secondary corporate bond market, SEBI has often explored measures like mandatory market-making for specific categories of bonds, encouraging wider participation, and enhancing electronic trading platforms.
72.
What is a key objective behind SEBI's recent proposals for stricter regulations in the corporate bond market?
A To reduce the number of corporate bond issuances.
B To enhance transparency and investor protection.
C To shift investor focus entirely to equity markets.
D To allow unregulated entities to issue bonds.
Answer: B
SEBI's primary objective in proposing stricter regulations for the corporate bond market is to enhance transparency, improve market integrity, and strengthen investor protection by ensuring better disclosures and robust oversight.
73.
Which of the following is a mandatory disclosure requirement for digital loans as per RBI guidelines?
A Disclosure of the borrower's credit score to third-party marketing agencies.
B A detailed 'Key Fact Statement' (KFS) including the Annual Percentage Rate (APR).
C The lender's internal profit margins on each loan.
D The exact algorithm used for credit assessment.
Answer: B
The RBI guidelines mandate that a 'Key Fact Statement' (KFS) must be provided to the borrower before the execution of the loan agreement, clearly detailing all terms and conditions, including the Annual Percentage Rate (APR), loan tenure, fees, and charges.
74.
According to the RBI's digital lending guidelines, what is the primary responsibility of a Regulated Entity (RE) when engaging a Lending Service Provider (LSP)?
A LSPs are solely responsible for customer grievance redressal.
B REs must ensure that LSPs adhere to all regulatory guidelines and are accountable for their actions.
C REs are only responsible for providing funds, while LSPs handle all customer-facing operations independently.
D LSPs can set their own interest rates and fees without RE oversight.
Answer: B
The RBI guidelines clearly state that Regulated Entities (REs) are ultimately responsible for the actions of their Lending Service Providers (LSPs) and must ensure that LSPs comply with all regulatory requirements, including customer protection and data privacy norms.
75.
What is a key mandate of the RBI's new guidelines for digital lending platforms regarding loan disbursement?
A Direct disbursement of loans into the borrower's bank account.
B Disbursement through the Lending Service Provider's (LSP) nodal account.
C Cash disbursement at designated physical outlets.
D Disbursement directly to the merchant for product purchase.
Answer: A
The RBI guidelines mandate that the loan disbursement must be made directly into the borrower's bank account by the Regulated Entity (RE) and not through any third party, including LSPs, to ensure transparency and accountability.
76.
Which of the following is a key objective guiding the RBI's monetary policy decisions in July 2026?
A Maximizing export growth at all costs.
B Ensuring financial market stability and controlling inflation within the mandated target.
C Promoting rapid industrial expansion through aggressive credit expansion.
D Reducing the fiscal deficit of the government.
Answer: B
The primary mandate of the RBI, as per the RBI Act, 1934, is to maintain price stability while keeping in mind the objective of growth. In July 2026, controlling inflation within the target band (typically 4% +/- 2%) and ensuring financial stability remain paramount.
77.
What is the current policy repo rate set by the RBI in July 2026, reflecting its monetary policy stance?
A 5.50%
B 6.00%
C 6.50%
D 6.75%
Answer: C
The RBI's Monetary Policy Committee, in its July 2026 meeting, decided to keep the policy repo rate unchanged at 6.50%. This decision aligns with the calibrated tightening stance, aiming to anchor inflation expectations while supporting growth.
78.
In July 2026, what is the prevailing monetary policy stance adopted by the Reserve Bank of India (RBI) to manage inflation and support economic growth?
A Aggressively accommodative, with a focus on lowering interest rates.
B Neutral, with no strong bias towards either tightening or easing.
C Calibrated tightening, with a focus on bringing inflation within the target band.
D Reverse repo focused, aiming to absorb excess liquidity.
Answer: C
As of July 2026, the RBI's Monetary Policy Committee (MPC) has maintained a stance of 'Calibrated Tightening'. This approach aims to balance the need to control inflation, which might still be above the desired target, with the objective of not stifling economic growth.
79.
What is the projected trend for India's retail inflation in the latter half of 2026, based on the July 2026 figures and prevailing economic conditions?
A A sharp increase due to anticipated monsoon failures impacting food supply.
B A gradual decline as supply chain disruptions are expected to fully resolve.
C Continued volatility with potential for both upward and downward movements, heavily influenced by food prices and global factors.
D A steady plateauing around the 5% mark, indicating a stable economic environment.
Answer: C
The July 2026 inflation data, combined with ongoing global uncertainties and the seasonal impact on food prices, suggests that retail inflation is likely to remain volatile in the second half of 2026. While some factors might push it down, food price fluctuations and external shocks remain key risks.
80.
Considering the retail inflation data for July 2026, which sector has shown a notable moderation in price rise, contributing to a slight easing of the overall inflation rate?
A Housing and rent prices.
B Fuel and light prices.
C Healthcare services.
D Clothing and footwear.
Answer: B
Data for July 2026 suggests that the fuel and light component of the CPI basket has experienced some moderation, possibly due to stable global energy markets or specific government interventions, helping to slightly offset the pressures from other categories.
