MCQ 1. Under the Electronics Development Fund (EDF), “Daughter Funds” primarily function as:
A) Direct government-owned manufacturing units
B) Venture capital funds investing in electronics and IT startups
C) Subsidy-disbursement agencies for MSMEs
D) Funds used only for public R&D institutions
Explanation:
• Daughter Funds are SEBI-registered VC funds that receive investment from the EDF mother fund and invest in startups in ESDM, semiconductor design, etc.
• Daughter Funds are SEBI-registered VC funds that receive investment from the EDF mother fund and invest in startups in ESDM, semiconductor design, etc.
MCQ 2. Which of the following is/are correct regarding Daughter Funds under EDF?
1. They are managed by private fund managers, not the Government.
2. They invest only in late-stage electronics manufacturing companies.
3. Government’s stake in daughter funds is always less than 50%.
Select the correct answer:
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3
Explanation:
• Statement 1 – Correct: They are managed by private/SEBI-registered VC fund managers.
• Statement 2 – Incorrect: They invest mainly in early-stage startups.
• Statement 3 – Correct: Government always keeps minority stake (<49%).
• Statement 1 – Correct: They are managed by private/SEBI-registered VC fund managers.
• Statement 2 – Incorrect: They invest mainly in early-stage startups.
• Statement 3 – Correct: Government always keeps minority stake (<49%).
MCQ 3. What is the primary advantage of using Daughter Funds instead of direct government investment in startups?
A) Ensures complete government control
B) Enables professional, market-driven investment decisions
C) Reduces private sector participation
D) Guarantees profits to government
Explanation:
• Daughter Funds allow professional fund managers to make investment decisions, ensuring better evaluation and reducing delays. This is the main reason EDF uses a Fund-of-Funds structure.
• Daughter Funds allow professional fund managers to make investment decisions, ensuring better evaluation and reducing delays. This is the main reason EDF uses a Fund-of-Funds structure.
MCQ 4. Which of the following sectors are Daughter Funds under EDF allowed to invest in?
1. Semiconductor design
2. Nanotechnology
3. Textile manufacturing
4. Artificial Intelligence (AI)
Select the correct answer:
A) 1, 2 and 4 only
B) 1 and 3 only
C) 1, 2 and 3 only
D) 1, 2, 3 and 4
Explanation:
• Daughter funds invest in electronics, semiconductors, AI, cyber-tech, nanotech, etc.
• Textiles are not included.
• Daughter funds invest in electronics, semiconductors, AI, cyber-tech, nanotech, etc.
• Textiles are not included.
MCQ 5. Consider the following statements about the Fund-of-Funds structure used in EDF:
1. It helps leverage private capital in addition to government funding.
2. It reduces the risk exposure of the government.
3. It prevents private venture capital funds from participating.
Which of the above are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3
Explanation:
• 1 – Correct: A Fund-of-Funds structure attracts private investors along with government money.
• 2 – Correct: Daughter funds bear the investment risk → government risk decreases.
• 3 – Incorrect: Private VC participation is essential; the model depends on it.
• 1 – Correct: A Fund-of-Funds structure attracts private investors along with government money.
• 2 – Correct: Daughter funds bear the investment risk → government risk decreases.
• 3 – Incorrect: Private VC participation is essential; the model depends on it.
MCQ 6. Tungsten is widely used for making light bulb filaments because:
1. It has a very high melting point.
2. It has low thermal expansion.
3. It is a good electrical conductor.
Choose the correct answer:
A) 1 only
B) 1 and 3 only
C) 1, 2 and 3
D) 1 and 2 only
Explanation:
• High melting point prevents melting
• Low thermal expansion prevents sagging
• Good electrical conductivity allows heating
• High melting point prevents melting
• Low thermal expansion prevents sagging
• Good electrical conductivity allows heating
MCQ 7. Which of the following properties makes tungsten suitable for armour-piercing ammunition?
A) Low density and ductility
B) High density and hardness
C) High reactivity
D) Low melting point
Explanation:
• Tungsten’s very high density and hardness allow it to penetrate armour.
• Tungsten’s very high density and hardness allow it to penetrate armour.
MCQ 8. Tungsten has the highest melting point among all metals mainly because of:
A) Weak metallic bonding
B) Strong metallic bonding and high binding energy
C) Presence of impurities
D) Low density
Explanation:
• Strong metallic bonding and high binding energy make tungsten’s lattice very stable, requiring very high temperature to melt.
• Strong metallic bonding and high binding energy make tungsten’s lattice very stable, requiring very high temperature to melt.
MCQ 9. Tungsten carbide (WC) is used for industrial cutting tools because it:
1. Is extremely hard
2. Has high wear resistance
3. Has high electrical resistance
A) 1 and 2 only
B) 2 only
C) 1 and 3 only
D) 1, 2 and 3
Explanation:
Property 3 is not relevant. WC is used for hardness + wear resistance.
Property 3 is not relevant. WC is used for hardness + wear resistance.
MCQ 10. Consider the following statements about tungsten:
1. It has one of the lowest thermal expansion coefficients among metals.
2. It forms very hard carbides.
3. It oxidizes rapidly at room temperature.
Which of the above are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3
Explanation:
• Statement 3 is incorrect: Tungsten oxidizes significantly only at high temperatures, not rapidly at room temperature.
• Statement 3 is incorrect: Tungsten oxidizes significantly only at high temperatures, not rapidly at room temperature.