Overview of Financial Market

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

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

Money market deals in _____________________

• Medium-term securities

• Short term Securities

• Long term Securities

• None of these

The process of holding shares in electronic form is known as

• Demutualisation

• Dematerialisation

• Speculation

• None of the above

An money market instruments issued on behalf of Central Government.

• a. Call Money

• b. Treasury Bill

• c. Commercial Paper

• d. Commercial Bill

Maturity period to call money is

• a. 1 to 14 days

• b. 15 to 90 days

• c. 15 to 1 years

• d. 1 to 30 days

Financial market facilitates business firms

• To raise funds

• To recruit workers

• To make more sales

• To minimize fund requirement

Primary market is also called as

• Secondary market

• Money market

• New Issue Market

• Indirect Market