Electoral bonds are financial instruments that were introduced in India in 2018 as a way for individuals, companies, and other entities to make anonymous donations to political parties. These bonds can be purchased in specified denominations from selected banks and then given to a registered political party. The intent is to increase transparency and accountability in political funding.
Merits of electoral bonds
Merits of electoral bonds include increased transparency in political funding and the anonymity they provide to donors. However, a major demerit is that critics argue they can still potentially influence political decisions and create opportunities for corruption.
MCQs (Multiple Choice Questions) are an important part of many competitive exams in India, such as Banking, SSC, Railway, UPSC, and State PSC exams (OSSC, OSSSC, OPSC…). These exams assess the candidates’ knowledge and skills in the field of cuttent affairs
Electoral Bond MCQ
Q.1: When were electoral bonds introduced in India?
Answer: B) 2018
Q.2: What is the purpose of electoral bonds?
Answer: A) To increase transparency in political funding
Q.3: Which of the following statements about electoral bonds is true?
Correct Answer: B) Electoral bonds offer complete anonymity to both the donor and the recipient.
Q.4: Who is authorized to purchase electoral bonds?
A) Individual citizens
B) Foreign entities
C) Corporations
D) All of the above
A) Individual citizens
Q.5: Electoral bonds were introduced in India in which year?
A) 2015
B) 2017
C) 2019
D) 2021
Correct Answer: B) 2017
Q.6: Which institution is responsible for issuing electoral bonds?
A) Election Commission of India
B) Ministry of Finance
C) Reserve Bank of India
D) State Bank of India
Correct Answer: D) State Bank of India
Q.7: What is the validity period of electoral bonds?
Correct Answer: C) 2 years
Q.8: Electoral bonds can be encashed only by whom?
Correct Answer: A) Political parties registered under the Representation of People Act, 1951
Q.9: Which of the following is not a feature of electoral bonds?
Correct Answer: D) Public disclosure of donors’ identities
Q.10: Electoral bonds can be purchased in denominations of:
Correct Answer: B) ₹10,000 and above
Q.11: Which of the following is true regarding the electoral bond scheme?
Correct Answer: A) It was introduced to increase transparency in political funding.
Q.12: What is the maximum amount of electoral bonds that an individual or entity can purchase in a financial year?
Correct Answer: D) There is no maximum limit
Q.13: Electoral bonds are available for purchase at which types of banks?
Correct Answer: D) All of the above
Q.14: In which form are electoral bonds issued?
Correct Answer: C) Both electronic and physical forms
Q.15: Which institution authorizes the sale of electoral bonds?
Correct Answer: A) Ministry of Finance
Q.16: Electoral bonds were introduced in India to replace which method of political funding?
Correct Answer: A) Cash donations
Q.17: Electoral bonds are primarily aimed at increasing:
Correct Answer: A) Transparency in political funding
Q.18: Which of the following statements about electoral bonds is false?
Correct Answer: A) Electoral bonds can be encashed by any individual or entity.
Q.19: Electoral bonds were introduced in India through which mechanism?
Correct Answer: B) Executive order
Q.20: Which of the following is not a purpose of electoral bonds?
Correct Answer: C) Encouraging corporate donations to political parties
Q.21: In which denominations can electoral bonds be issued?
Correct Answer: B) ₹1,000, ₹10,000, and ₹10 lakh
Q.22: Which of the following institutions is responsible for managing the Electoral Bond Scheme?
Correct Answer: C) Ministry of Finance
Q.23: Electoral bonds can be encashed by political parties within how many days of issuance?
Correct Answer: B) 30 days
Q.24: Which of the following statements about electoral bonds is true?
Correct Answer: C) The face value of electoral bonds is always equal to the purchase price.
Q.25: Electoral bonds are available for purchase during which periods of the year?
Correct Answer: D) October to September
Q.26: Which government introduced the concept of electoral bonds in India?
Correct Answer: B) Bharatiya Janata Party-led government
Q.27: What is the maximum amount of electoral bonds that can be issued in a single tranche?
