Economy & Tax — Set 4

Correct Answer: B. Special Drawing Rights

• **Special Drawing Rights** = These are international reserve assets created by the International Monetary Fund (IMF). • **Five major international currencies** — The value of an SDR is based on a basket of these currencies. • 💡 Wrong-option analysis: [Option A]: 'State Debt Reserve' is not the correct full form of SDR; [Option C]: 'Social Development Reform' is not the correct full form of SDR; [Option D]: 'Standard Deposit Ratio' is not the correct full form of SDR.

Correct Answer: D. International Financial Reporting Standards

• **International Financial Reporting Standards** = These are a set of accounting rules for the financial statements of public companies. • **International Accounting Standards Board (IASB)** — This body issues the IFRS to ensure consistent financial reporting globally. • 💡 Wrong-option analysis: [Option A]: 'Insurance and Finance Rating Standard' is not the correct full form of IFRS; [Option B]: 'Internal Fiscal Reform System' is not the correct full form of IFRS; [Option C]: 'Integrated Financial Revenue Scheme' is not the correct full form of IFRS.

Correct Answer: A. Bombay Stock Exchange

• **Bombay Stock Exchange** = It is Asia's first and oldest stock exchange. • **1875** — This year marks the establishment of BSE, making it the oldest in Asia. • 💡 Wrong-option analysis: [Option B]: 'Bharat Stock Exchange' is not the correct full form of BSE; [Option C]: 'Basic Securities Exchange' is not the correct full form of BSE; [Option D]: 'Business Standard Exchange' is not the correct full form of BSE.

Correct Answer: D. National Stock Exchange

• **National Stock Exchange** = It is the leading stock exchange in India, located in Mumbai. • **1992** — This year marked the establishment of NSE, which introduced the first fully automated screen-based trading system in India. • 💡 Wrong-option analysis: [Option A]: 'Native Standard Equity' is not the correct full form of NSE; [Option B]: 'New Stock Entity' is not the correct full form of NSE; [Option C]: 'Net Securities Exchange' is not the correct full form of NSE.

Correct Answer: B. Association of Mutual Funds in India

• **Association of Mutual Funds in India** = It is the nodal association for mutual funds across India. • **Healthy market practices** — AMFI works to promote these practices and protect investor interests in the mutual fund industry. • 💡 Wrong-option analysis: [Option A]: 'Authorized Management of Financial Investments' is not the correct full form of AMFI; [Option C]: 'Asian Market for Financial Instruments' is not the correct full form of AMFI; [Option D]: 'Agency for Monitoring Fund Interests' is not the correct full form of AMFI.

Correct Answer: B. Compound Annual Growth Rate

• **Compound Annual Growth Rate** = It is a measure used to describe the mean annual growth rate of an investment. • **Longer than one year** — CAGR is specifically used for investments over a period of this duration. • 💡 Wrong-option analysis: [Option A]: 'Centralized Asset Generation Rate' is not the correct full form of CAGR; [Option C]: 'Corporate Account Growth Record' is not the correct full form of CAGR; [Option D]: 'Capital Asset Gain Ratio' is not the correct full form of CAGR.

Correct Answer: C. Net Asset Value

• **Net Asset Value** = This represents the market value per share or unit of a mutual fund or ETF. • **Each trading day** — NAV is typically calculated at the end of this period. • 💡 Wrong-option analysis: [Option A]: 'Net Account Variable' is not the correct full form of NAV; [Option B]: 'New Asset Volume' is not the correct full form of NAV; [Option D]: 'National Asset Verification' is not the correct full form of NAV.

Correct Answer: D. Securities and Exchange Board of India

• **Securities and Exchange Board of India** = It is the regulatory body for the securities and commodity markets in India. • **1992** — In this year, SEBI was given statutory powers, strengthening its role as a regulator. • 💡 Wrong-option analysis: [Option A]: 'Security and Export Board of India' is not the correct full form of SEBI; [Option B]: 'Social and Economic Board of India' is not the correct full form of SEBI; [Option C]: 'Standard Equity Bureau of India' is not the correct full form of SEBI.

Correct Answer: B. General Agreement on Tariffs and Trade

• **General Agreement on Tariffs and Trade** = It was a legal agreement between many countries to promote international trade. • **1995** — In this year, GATT was replaced by the World Trade Organization (WTO). • 💡 Wrong-option analysis: [Option A]: 'Government Agreement for Transport and Trade' is not the correct full form of GATT; [Option C]: 'Global Agency for Trade and Technology' is not the correct full form of GATT; [Option D]: 'General Association of Tax and Tolls' is not the correct full form of GATT.

Correct Answer: B. Telecom Regulatory Authority of India

• **Telecom Regulatory Authority of India** = It is the regulator of the telecommunications sector in India. • **1997** — TRAI was established by an Act passed in this year. • 💡 Wrong-option analysis: [Option A]: 'Telegraph Reform and Assessment Indian' is not the correct full form of TRAI; [Option C]: 'Total Revenue Analysis of India' is not the correct full form of TRAI; [Option D]: 'Telephone Revenue and Account Institute' is not the correct full form of TRAI.