Money Market Quiz

On which of the following instruments is the rate of return calculated on a 'discount basis'?

1. Certificate of deposit

2. Interbank deposits

3. Commercial paper

4. Repurchase agreements

5. Commercial bills

Interbank market is the financial system among

• Investors

• Individual investors and banks

• Banks and financial institutions

• Treasury and commercial banks

Interbank market is the financial system among

• Individual investors and banks

• Banks and financial institutions

• Investors

• Treasury and commercial banks

Discount instruments are issued at

• A price lower than face value

• A price higher than face value

• Face value

• Face value plus interest

Which of the financial instruments below is regularly used in international trade?

• Treasury bill (T-bill)

• Bankers' Acceptances (B.A)

• Certificate of Deposit (C.D)

• Repurchase Agreement (Repo)

Risk-free rate (RFR) often is rate of:

• Commercial Paper (C.P)

• Treasury bill (T-bill)

• Repurchase Agreement (Repo)

• Certificate of Deposit (C.D)

When central bank buys securities on Open Market, reserves of commercial banks will...

• Fluctuate

• Decrease

• Remain unchanged

• Increase

Which of the following works as Yield Instrument?

• Euro commercial paper

• Commercial Paper

• Treasury Bill

• Repurchase agreement (REPO)

What is the main reason of high inflation ?

• The neglect government who lets their money demand grow too fast

• The neglect government who lets their money supply grow too fast

• The neglect government who lets their money demand drop too fast

• The neglect government who lets their money supply drop too fast

Expansionary monetary policy can be implemented by:

• Selling corporate bonds

• Buying corporate bonds

• Selling Treasuries to member bank.

• Buying Treasurys from member bank.