Which of the following pairs are matched correctly? 1. Bitcoin | National Stock Exchange 2. FRBM Act | Fiscal Deficit 3. SEBI | Insurance Regulation 4. Special Drawing Rights | International Monetary Fund 5. Moody’s | Credit Rating

Fiscal Responsibility and Budget Management (FRBM) Act

• The Fiscal Responsibility and Budget Management Act (FRBM Act), 2003, establishes financial discipline to reduce the fiscal deficit. Hence, pair 2 is correct.
• It intends to bring transparency and accountability in the conduct of the fiscal and monetary actions of the government.
• It requires the government to limit the fiscal deficit to 3% of the GDP by 31 March 2021 and the debt of the central government to 40% of the GDP by 2024-25, among others.
• The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue and the total outstanding liabilities be projected as a percentage of gross domestic product (GDP) in the medium-term fiscal policy statement

Special drawing rights (SDR)

• Special drawing rights (SDR) is an international type of monetary reserve currency.
• It was created by the International Monetary Fund (IMF) in 1969. Hence, pair 4 is correct.
• SDR operates as a supplement to the existing money reserves of member countries.
• The value of the SDR is determined daily and made available on the IMF's website.
• There are only five currencies in the world which are associated with SDR and those currencies are the Chinese Yuan, Japanese Yen, American dollar, Euro, Pound Sterling.

Moody's

• Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Hence, pair 5 is correct.
• It was founded in 1909 and its headquarters is in New York, United States.
• Moody's Investors Service provides international financial research on bonds issued by commercial and government entities.
• Moody's, along with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.
• It is also included in the Fortune 500 list of 2021.

Securities and Exchange Board of India (SEBI)

• Securities and Exchange Board of India (SEBI) is a statutory body and a market regulator, which controls the securities market in India.
• The basic functions of SEBI are to protect the interests of investors in securities and to promote and regulate the securities market. Hence, pair 3 is incorrect.

Bitcoin

• Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Hence, pair 1 is incorrect.
• Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.