Order Financial Market Discussion Solutions

Order Financial Market Discussion Solutions
Order 5908778
Order Financial Market Discussion Solutions
1. The financial market for securities with
maturities of less than one year is
known as
(a) Derivatives market
(b) Cash market
(c) Money market
(d) Rupee market
2. India’s financial system can be mainly
divided into
(a) two categories (b) three categories
(c) four categories (d) five categories
3. Which one of the following is a
specialised sub market of the money
market?
(a) Collateral loan market
(b) Discount market
(c) Bond market
(d) Acceptance market
4. India has highly volatile part of
organised money market.
[RAS/RTS 2018]
(a) Government Securities Market
(b) Trade Bill Market
(c) Soliciting Money Market
(d) Deposite Certificate Market
Order Financial Market Discussion Solutions
5. Which one of the following is correct
about the Commercial Papers (CPs) in
Indian money market?
(a) It is issued by Indian Commercial
Bank.
(b) It is issued by the companies with a
net worth more than ` 5 crore.
(c) It is issued by the Central Government.
(d) All of the above
6. The market in which loans of money
can be obtained is called [NDA 2014]
(a) Reserve market
(b) Institutional market
(c) Money market
(d) Exchange market
7. Which of the following statement is
correct about daily volumes in the call
money market?
(a) These volumes are usually lower than
the volumes in the repo markets.
(b) These volumes are comparable
with volumes in the ICD and CP
markets.
(c) They register the largest transaction
value after government securities.
(d) Call money markets record the
highest daily transaction value
amongst all segments of debt
markets.
8. Nifty Junior is related with which one of
the following markets of the Indian
economy?
(a) Indian money market
(b) Indian commodity market
(c) Indian currency market
(d) Indian equity market
9. In the context of Indian economy,
‘Open Market Operations’ refers to
[IAS (Pre) 2013]
(a) borrowing by scheduled banks from
the RBI.
(b) lending by commercial banks to
industry and trade.
(c) purchase and sale of government
securities by the RBI.
(d) None of the above
Order Financial Market Discussion Solutions
10. Purchase or sale of government
securities by the Central Bank from the
general public in the bond market, in a
bid to increase or decrease the money
supply in the economy is referred to as
[NDA 2012]
(a) Open Market Operations
(b) Rationing of Credit
(c) Variable Reserve Ratio
(d) Clear Money Policy
11. Open Market Operations, one of the
measures taken by RBI in order to
control credit expansion in the
economy, means
(a) sale or purchase of government
securities.
(b) issuance of different types of bonds.
(c) auction of gold.
(d) to make available direct finance to
borrowers.
12. Consider the following statements.
I. Money market refers to the market for
short-term requirement and
deployment of funds.
II. Coupon rate is specified interest rate
on a fixed maturity security, fixed at
the time of issue.
III. Call money is money lent for one day.
Which of the statements given above
is/are correct?
(a) I and II only (b) II and III only
(c) I and III only (d) All of these
13. Which of the following statements are
true about T-Bills?
I. 14 days T-bill is auctioned on every
Friday every week.
II. 91 days T-bill is auctioned on every
Friday every week.
III. 182 days T-bill and 364 days T-bill are
auctioned on every alternate
Wednesday.
IV. 182 days T-bill and 364 days T-bill are
auctioned on a fortnight basis.
Choose the right answer from the codes
given below.
(a) I, II and III (b) I and IV
(c) II and III (d) I, II and IV
14. Capital market means [IAS (Pre) 2008]
(a) Share market
(b) Cash market
(c) Commodities market
(d) All of the above
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