23.18      ndian     onom
             autonomy in areas of critical importance,             AIFs with ‘positive spill over effects’ on
             similar to many Western economies. It                 the economy, for which certain incentives
             is believed that it has been given a kind             or concessions might be considered by
             of working autonomy in the area of                    SEBI or the GoI or other regulators
             making and announcing the Credit and                  in India, which shall include Venture
             Monetary Policy (though there is no                   Capital Funds, SME Funds, Social Venture
             change in the official stand hitherto).               Funds, Infrastructure Funds and such
     15. (d) Since market makers quote two-way                     other Alternative Investment Funds(AIFs)
             prices for securities, they seem to ‘make’            as may be specified.
             market for the concerned securities. The      20. (a) Standard Chartered Bank is the only
             OTCEI is modelled on the NASDAQ of                    company which has issued IDRs in
             the USA for listing of SMEs, which face               India. In May 2010 it raised Rs. 2,500
             lesser liquidity in their share transactions.         crore through this route.
             The DFHI is a dedicated body for two          21. (d) This is one of the clauses of the Basel
             transactions in the money market of                   III norms (of the Basel based Bank for
             India, operating since 1988.                          International Settlement) aimed at
     16. (d) All the statements are correct. In case               prudential regulation of the banking
             of India’s agricultural commodities,                  sector. Banks are supposed to maintain
             such trading doesn’t seem functioning                 sufficient long-term (one year) liquidity
             well because other related institutional              under it so that they could be sure of stable
             developments have not happened in time                source of fund in times of financial stress
             and farmers are not yet active players on             if such situations arise in the economy.
             the commodity exchanges of India (partly      22. (d) As per the new policy announced by the
             due to operational difficulties, smaller              Government in 2016–17, any amount
             capital base and lack of knowledge).                  of shares can be sold in the public sector
             Once big farmers (contract/corporate                  undertakings (PSUs). Disinvestment is
             farmers) emerge, it will start functioning            now seen as the part of ‘comprehensive
                                                                   management           of      Government’s
             in a better way for such commodities.
                                                                   investment in the PSUs’.
     17. (d) Other routes of raising capital from the
                                                           23. (d) Capital consumption is the other term
             primary market are: (a) Public Issue and
                                                                   for ‘depreciation’. In the process of
             (b) Rights Issue.
                                                                   their uses fixed assets depreciate (go for
     18. (d) All the options are correct.                          wear and tear) at the rate decided by
     19. (d) Such investors are usually found among                the government of the economy—the
             an entrepreneur’s family and friends, but             rates for the same assets may vary across
             they may be from outside also providing               economies.
             financial backing to entrepreneurs                    In the new system of national income
             for starting their business. The Union                accounting it in written as CPC
             Budget 2013–14 promised a provision                   (Consumption of fixed capital)–in use
             for them. As per SEBI (Alternative                    since 2015–16 after the advice of the IMF.
             Investment Funds) Regulations, 2012 (AIF      24. (d) Microfinance (MF) is a small-scale
             Regulations), Category I AIF are those                financial intermediation, inclusive of