2007 General Studies, all questions

UPSC Prelims 2007 · General Studies

Question 102: Economy and Social Development

Participatory Notes (PNs) are associated with which one of the following?

aConsolidated Fund of India
bForeign Institutional Investors
cUnited Nations Development Programme
dKyoto Protocol

AnswerThe answer is (b).

Participatory Notes are instruments issued by registered Foreign Institutional Investors, or their sub-accounts, to overseas investors who want exposure to Indian shares without registering with SEBI. They are linked with FIIs, and have been criticised for hiding the real owners of money. They have nothing to do with the Consolidated Fund, the UNDP or the Kyoto Protocol.

Why each option is right or wrong
  • (a) The Consolidated Fund of India is unrelated.
  • (b) Correct: Participatory Notes are tied to Foreign Institutional Investors.
  • (c) The UNDP is unrelated.
  • (d) The Kyoto Protocol is unrelated.

Explanation: written by UPSC Grade, not by UPSC.

Practise this paper timedPrevious questionNext question

Source: UPSC, Civil Services (Preliminary) Examination 2007, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.