2000 General Studies, all questions
UPSC Prelims 2000 · General Studies
Question 62: Economy and Social Development
A rise in ‘SENSEX’ means
aa rise in prices of shares of all companies registered with Bombay Stock Exchange
ba rise in prices of shares of all companies registered with National Stock Exchange
can overall rise in prices of shares of group of companies registered with Bombay Stock Exchange
da rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange
AnswerThe answer is (c).
The Sensex is the Bombay Stock Exchange's index of 30 large, actively traded company shares, weighted by market value, with 1978-79 as the base year (100). A rise means that, taken together, the prices of those 30 shares have gone up. It does not track all companies on the BSE, or the National Stock Exchange, whose index is the Nifty.
Why each option is right or wrong
- (a) The Sensex covers only 30 shares, not all companies on the BSE.
- (b) The NSE's index is the Nifty, not the Sensex.
- (c) Right: an overall rise in the prices of a group of companies' shares on the BSE.
- (d) A rise does not mean every share in the group rose; it is the weighted index that rises.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2000, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.