Financial Markets

What type of instruments are traded in a Money Market?

• Call money

• Treasury bills

• Commercial bills

• All of the above

The expected rate of return of the money market is ______

• Very high

• Less

• Zero

• None of the above

A treasury bill is an instrument of:

• Dividend

• Short term debt

• Long term debt Interest

Treasury bills are also known as:

• Fixed interest Bonds

• Flat Rate Bonds

• Low-Interest Bonds

• Zero-Coupon Bonds

A commercial bill is used to _____________

• Finance the working capital requirements

• Meet the short term debt

• Meet the long term debt

• Pay the interest

When a trade bill is accepted by a commercial bank, it is known as a _____

• Commercial Bill

• Call money

• None of these

• Certificate of deposit

A capital market is ideal when:

• Financial institutions are sufficiently developed

• Finance is available at a reasonable cost

• Capital is most productively allocated

• All of these

Money market deals in _____________________

• Medium-term securities

• Short term Securities

• Long term Securities

• None of these

Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.

• Offer through prospectus

• Offer for sale

• Rights issue

• Private placement

On this day, the exchange will deliver the share or make payment to the other broker

• Pay-in day

• Pay-out day

• Transaction day

• None of the above