IFS FLASHCARD

Front

1. Which of the following instruments has the shortest maturity period in the Indian money market?

Options: Commercial Paper , Certificate of Deposit (CD), Treasury Bills (T-Bills), Call Money

Back

Call Money

Front

The "When Issued" (WI) market in India is associated with which financial instrument? Options: Corporate Bonds, Government Securities (G-Secs), Commercial Papers, Equity Shares

Back

Government Securities (G-Secs)

Front

Which of the following is a unique feature of the "STRIPS" (Separate Trading of Registered Interest and Principal Securities) in India? Zero-coupon bonds created from G-Secs, High-yield corporate bonds, Tax-free municipal bonds, Perpetual debt instruments

Back

Zero-coupon bonds created from G-Secs

Front

The "Market Stabilization Scheme (MSS)" is primarily used by the RBI to:

Back

Absorb excess liquidity via issuance of bonds

Front

Which of the following is NOT a function of the Primary Dealers (PDs) in India? Underwriting government securities, Market-making for G-Secs, Setting repo rates, Providing liquidity in secondary markets

Back

Setting repo rates

Front

The "Haircut" in repo transactions refers to:

Back

Difference between market value and collateral value

Front

Which of the following is true about "Tri-Party Repo" in India? Involves only two parties (borrower & lender), Uses a third-party agent for collateral management, Exclusively for corporate bonds, Prohibited by SEBI

Back

Uses a third-party agent for collateral management

Front

The "Foreign Portfolio Investment (FPI)" limit in Indian corporate bonds is regulated by:

Back

SEBI

Front

The "Standing Deposit Facility (SDF)" introduced in 2022 is a tool for:

Back

Absorbing liquidity without collateral

Front

The "Retail Direct Gilt (RDG) Account" allows retail investors to directly invest in:

Back

Government Securities