SP Jain Money Markets

Which is "not" a Money market instrument

• Foreign Exchange

• Certificate of Deposit

• Commercial Paper

• Corporate Bond

Commercial Paper the issuer is

• Only Commercial banks

• Any listed company including commercial banks

• Federal Govt.

• Only non-financial corporates

The issuer for Certificate of deposit is

• All financial institutions

• Only Commercial banks

• Non-Banking Financial Companies

• Non-Financial corporates

• Federal Govt

What is the difference between Certificate of deposit(CDs) and bank Fixed deposits?

• No difference

• CDs are non-negotiable but Fixed deposits are negotiable

• CDs are negotiable but Fixed deposits are non-negotiable

What are Euro Dollars?

• Euro to Dollar Exchange rate

• US Dollar deposits in USA

• US Dollar deposits outside USA

• US Dollar cash in the hands of foreigners

What is a Bills of Exchange?

• Promissory note

• An instrument where the lender/seller orders the borrower/buyer to pay a sum of money on a certain due date in the future and the same has been accepted by the borrower/buyer

• Commercial Invoice

• Bill of lading

What is the interest rate on USD 1 mio for 60 days at 5% pa??

• USD1 Mio x 0.05x60/365

• USD1 Mio x0.05x365/60

• USD1 mio x0.05X60/360

• USD1 Mio x0.05 x 360/60

What is a Banker acceptance?

• A bill of exchange drawn by a bank.

• A Bill of exchange which has been accepted by Bank

• A CD issued by bank

• A CP issued by bank

What is a repurchase agreement?

• Commercial paper

• An instrument that comprises two transactions; sale and buyback of securities

• Treasury Bills

You want to lend INR 100 mio for 3 months to another bank. He quotes a rate of 3 1/4%/ 3 3/8%. Which rate did you lend?

• 3 1/4%

• 3 3/8%

• 3.3125%

• none of the above