CL XII BST : FINANCIAL MARKET

Financial intermediaries are:

• investors
• financial markets and banks
• savers
• brokers

The allocative function of financial market facilitates

• price discovery
• liquidity to financial assets
• most productive investment opportunity
• none

Primary and Secondary Markets

• compete with each other
• complement each other
• function independently
• control each other

Secondary Market deals in:

• new securities with maturity period less than one year
• new securities with maturity period more than one year
• existing securities with maturity period less than one year
• existing securities with maturity period more than one year

Which of the following markets deals in securities with maturity of less than one year.

• Primary market
• secondary market
• money market
• capital market

This financial instrument is issued by RBI to raise funds for Central Government

• commercial paper
• treasury bill
• call money
• certificate of deposit

This financial instrument is related to money market

• equity shares
• Certificate of deposit
• debentures
• bonds

This financial instrument is related to capital market

• Commercial Paper
• Certificate of deposit
• debentures
• commercial bill

The financial instrument with shortest maturity period is

• call money
• Certificate of deposit
• commercial bill
• treasury bill

Commercial banks or development banks issue this document

• commercial bill
• Certificate of deposit
• treasury bill
• Commercial paper