Indian Regulatory Frame MCQS​

1. The Indian Contract Act was enacted in which year?
a) 1857
b) 1872
c) 1900
d) 1947
 Answer: b) 1872

2. Which of the following is not a source of Indian business law?
a) Constitution of India
b) Judicial decisions
c) Religious texts
d) Company Memorandum
 Answer: d) Company Memorandum

3. SEBI was established in the year:
a) 1988
b) 1992
c) 1995
d) 2000
 Answer: a) 1988

4. The Reserve Bank of India was established in:
a) 1930
b) 1935
c) 1947
d) 1950
Answer: b) 1935

5. Which Act regulates the incorporation and functioning of companies in India?
a) Partnership Act
b) Indian Contract Act
c) Companies Act
d) SEBI Act
 Answer: c) Companies Act

6. FEMA replaced which earlier legislation?
a) SEBI Act
b) FERA
c) Companies Act
d) RBI Act
 Answer: b) FERA

7. The Income Tax Act came into effect in the year:
a) 1950
b) 1956
c) 1961
d) 1971
 Answer: c) 1961

8. The Consumer Protection Act, 2019 replaced the Act of:
a) 1980
b) 1985
c) 1986
d) 1991
 Answer: c) 1986

9. The Competition Act, 2002 was enacted to:
a) Promote monopolies
b) Encourage cartels
c) Prevent anti-competitive practices
d) Reduce FDI
 Answer: c) Prevent anti-competitive practices

10. The Information Technology Act, 2000 deals primarily with:
a) Consumer rights
b) Cyber laws
c) Insurance
d) Company accounting
 Answer: b) Cyber laws

11. The Indian Contract Act came into force on:
a) 15th September, 1872
b) 1st September, 1872
c) 1st October, 1872
d) 15th October, 1872
Answer: b) 1st September, 1872

12. The Indian Contract Act applies to:
a) Whole of India excluding Jammu & Kashmir
b) Whole of India including Jammu & Kashmir
c) States notified by the Central Government
d) None of the above
Answer: b) Whole of India including Jammu & Kashmir

13. An agreement consists of reciprocal promises between at least:
a) Four parties
b) Six parties
c) Three parties
d) Two parties
Answer: d) Two parties

14. Every promise and every set of promises forming the consideration for each other is a/an:
a) Contract
b) Agreement
c) Offer
d) Acceptance
Answer: c) Offer

15. Contract is defined as an agreement enforceable by law, vide Section:
a) Section 2(e)
b) Section 2(f)
c) Section 2(h)
d) Section 2(i)
Answer: c) Section 2(h)

16. Valid contracts:
a) Are made by free consent
b) Are made by competent parties
c) Have lawful consideration and lawful object
d) All of the above
Answer: d) All of the above

17. A contract creates:
a) Rights and obligations of the parties to it
b) Obligations of the parties to it
c) Mutual understanding between the parties to it
d) Mutual lawful rights and obligations of the parties to it
Answer: b) Obligations of the parties to it

18. Which of the following is NOT a development financial institution?
a) EXIM Bank
b) NABARD
c) PNB
d) IFCI
Answer: c) PNB

19. How many members of SEBI should be from RBI?
a) 2
b) 3
c) 1
d) 4
Answer: c) 1

20. Which of the following is NOT a function of RBI?
a) Custodian of the nation’s foreign exchange reserves
b) Banker to the government
c) Issue of currency
d) Watchdog of unethical competition in the market
Answer: d) Watchdog of unethical competition in the market

21 Fully owned subsidiaries of RBI include:
a) NABARD
b) National Housing Bank (NHB)
c) None of the above
d) Both a and b
Answer: d) Both a and b

22. The Constitution of India was adopted in:
a) 1947
b) 1949
c) 1950
d) 1951
Answer: b) 1949

23. Income Tax Act, 1961 is a part of the:
a) Central list
b) State list
c) Joint list
d) None of the above
Answer: a) Central list

24. Which of the following is NOT an example of Civil law?
a) Breach of contract
b) Non-delivery of goods
c) Traffic offenses
d) Non-payment of dues
Answer: c) Traffic offenses

25. When a law is proposed in Parliament it is called:
a) Act
b) Statute
c) Bill
d) Notification
 Answer: c) Bill

26. Which of the following is NOT a department of the Ministry of Finance?
a) Department of Economic Affairs
b) Department of Expenditure
c) Department of States
d) Department of Revenue
 Answer: c) Department of States

27. Courts get territorial limits based on:
a) The local limits within which the party resides
b) The local limits within which the property under dispute is located
c) Either (a) or (b)
d) None of the above
 Answer: c) Either (a) or (b)

28. The Securities and Exchange Board of India (SEBI) was established in:
a) 1988
b) 1992
c) 1995
d) 2000
Answer: a) 1988

29. The Reserve Bank of India was established in:
a) 1930
b) 1935
c) 1947
d) 1950
Answer: b) 1935

30. The Companies Act regulates the incorporation and functioning of companies in India.
a) True
b) False
Answer: a) True

31. FEMA replaced which earlier legislation?
a) SEBI Act
b) FERA
c) Companies Act
d) RBI Act
 Answer: b) FERA

32. The Income Tax Act came into effect in the year:
a) 1950
b) 1956
c) 1961
d) 1971
 Answer: c) 1961

33. The Consumer Protection Act, 2019 replaced the Act of:
a) 1980
b) 1985
c) 1986
d) 1991
 Answer: c) 1986

34. The Competition Act, 2002 was enacted to:
a) Promote monopolies
b) Encourage cartels
c) Prevent anti-competitive practices
d) Reduce FDI
 Answer: c) Prevent anti-competitive practices

35. The Information Technology Act, 2000 deals primarily with:
a) Consumer rights
b) Cyber laws
c) Insurance
d) Company accounting
 Answer: b) Cyber laws

36. The Ministry of Finance is responsible for:
a) Formulating economic policy
b) Managing national debt
c) Collecting taxes
d) All of the above
Answer: d) All of the above

37. The Ministry of Law and Justice plays a vital role in:
a) Ensuring access to justice
b) Upholding the rule of law
c) Promoting legal education
d) All of the above
Answer: d) All of the above

38. SEBI’s functions include:
a) Regulating the securities market
b) Protecting investors
c) Promoting fair and efficient markets
d) All of the above
 Answer: d) All of the above

39. Challenges faced by SEBI include:
a) Market volatility
b) Fraudulent activities
c) Lack of investor awareness
d) All of the above
 Answer: d) All of the above

40. RBI’s functions include:
a) Formulating monetary policy
b) Regulating the banking system
c) Managing currency
d) All of the above
 Answer: d) All of the above

41. The Insolvency and Bankruptcy Board of India (IBBI) was established in:
a) 2014
b) 2015
c) 2016
d) 2017
 Answer: c) 2016

42. IBBI regulates the:
a) Securities market
b) Insolvency and bankruptcy process
c) Insurance sector
d) Banking system
 Answer: b) Insolvency and bankruptcy process

43. The Constitution of India provides for a federal system of government, meaning:
a) All power is with the President
b) Powers are distributed between Centre and States
c) All power is with the Centre
d) No restrictions on the power of States
 Answer: b) Powers are distributed between Centre and States

44. The highest court in India is the:
a) High Court
b) District Court
c) Supreme Court
d) Sessions Court
Answer: c) Supreme Court

45. The three levels of the Indian judiciary system are:
a) Supreme Court, High Courts, District and subordinate courts
b) Supreme Court, Sessions Courts, Civil Courts
c) High Courts, District Courts, Panchayats
d) None of the above
Answer: a) Supreme Court, High Courts, District and subordinate courts

46. The Indian Contract Act is a part of:
a) Civil law
b) Criminal law
c) Family law
d) Property law
Answer: a) Civil law

47. The law concerned with violation of the rule of law and punishment is called:
a) Family law
b) Criminal law
c) Civil law
d) Property law
 Answer: b) Criminal law

48. The Indian Contract Act mentions elements necessary for a valid contract, such as:
a) Free consent
b) Lawful consideration
c) Competent parties
d) All of the above
Answer: d) All of the above

49. Judicial decisions constitute an important source of the law of contract, especially when:
a) The Act is silent on a point
b) There is ambiguity in the Act
c) Both a and b
d) None of the above
Answer: c) Both a and b

50. Customs and usages refer to:
a) Statutory laws
b) Judicial decisions
c) Generally accepted practices among members of a business community
d) None of the above
 Answer: c) Generally accepted practices among members of a business community

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51. A custom or usage to be legally binding must be:

a) Inconsistent with statutory law
b) Widely known, certain, and reasonable
c) Secretive and ambiguous
d) None of the above
Answer: b) Widely known, certain, and reasonable

52. The Contract Act will prevail over any usage or custom of trade unless:
a) The custom is more popular
b) The custom is not inconsistent with the provisions of the Contract Act
c) The custom is older
d) None of the above
Answer: b) The custom is not inconsistent with the provisions of the Contract Act