Banking System, NPA & IBC — Set 15
Economy Advanced · बैंकिंग प्रणाली, NPA और IBC · Questions 141–150 of 160
The Bancassurance model combines banking and insurance distribution. What is the primary benefit of bancassurance?
Correct Answer: B. Cross-selling opportunities and convenience
Bancassurance provides customers with convenient access to insurance products through bank branches, enabling cross-selling and comprehensive financial solutions.
The Debt Market in India funds government and corporate borrowings. What is the size of India's debt market as a percentage of GDP?
Correct Answer: C. 40%
India's debt market represents approximately 40% of GDP, comprising government securities, corporate bonds, and money market instruments that finance economic activities.
The Equity Market in India provides capital for corporate growth. What is the market capitalization of Indian equity markets?
Correct Answer: B. 2 trillion USD
Indian equity markets have a market capitalization of approximately 2-3 trillion USD, making it one of the largest emerging market equity markets globally.
The Market Depth reflects the volume of buy and sell orders at various price levels. Why is market depth important?
Correct Answer: B. Indicates liquidity and price stability
Market depth indicates liquidity in the market, showing the ability to execute large trades without significant price impact, ensuring price stability.
The Price-Earnings (P/E) Ratio indicates how much investors are willing to pay for each rupee of earnings. What does a high P/E ratio suggest?
Correct Answer: B. High growth expectations
A high P/E ratio suggests investors expect high future growth and earnings, willing to pay premium prices for stocks with growth potential.
The Dividend Policy of companies determines how much profit is distributed to shareholders. What is the typical dividend payout ratio in India?
Correct Answer: B. 30-40%
Indian companies typically have dividend payout ratios of 30-40%, retaining remaining profits for reinvestment and growth opportunities.
The Stock Buyback programs allow companies to repurchase their own shares. What is the primary purpose of stock buybacks?
Correct Answer: B. Boost earnings per share (EPS)
Stock buybacks reduce the number of outstanding shares, increasing EPS and potentially returning value to shareholders if the stock is undervalued.
The Merger and Acquisition (M&A) activities create corporate consolidation. How many M&A deals were announced in India in 2023?
Correct Answer: C. 300
India witnessed approximately 300+ M&A deals in 2023, reflecting strong corporate consolidation and business expansion across sectors.
The Corporate Governance standards ensure transparency and accountability. Which code governs corporate governance in India?
Correct Answer: B. Clause 49 now SEBI LODR
SEBI's Listing Obligation and Disclosure Requirements (LODR) code governs corporate governance in India, replacing the earlier Clause 49 provisions.
The Independent Directors protect shareholder interests through oversight. What is the minimum number of independent directors required on boards in India?
Correct Answer: C. 33% of board
Indian regulations require at least 33% of board members to be independent directors, ensuring robust oversight and protecting shareholder interests.