Quiz- M1

What is the primary purpose of a financial system?

• To serve as a link between savers and borrowers

• To provide loans to individuals

• To manage government funds

• To regulate the stock market

Which of the following is NOT a core component of the financial system?

• Instruments

• Markets

• Investors

• Institutions

What type of financial institution includes commercial banks?

• Non-Banking Financial Institutions

• Specialized Financial Institutions

• Banking Financial Institutions

• Investment Banks

Which market is classified as organized?

• Money market

• Peer-to-peer lending

• Informal lenders

• Indigenous bankers

What is a characteristic of the Indian money market?

• Highly integrated

• Presence of foreign players

• Multiplicity of interest rates

• Active secondary market

Which of the following is a feature of the financial system?

• Increases transaction costs

• Limits financial resources

• Regulates transactions between economic units

• Promotes economic stagnation

What is the role of the RBI in the money market?

• To regulate the Indian money market

• To provide loans to individuals

• To manage foreign exchange

• To issue stocks

What type of financial instrument is a bond?

• Equity instrument

• Debt instrument

• Derivative instrument

• Currency instrument

What is a Certificate of Deposit?

• A government bond

• A long-term investment

• A short-term debt instrument

• A type of equity share

What does the term 'repo' refer to?

• A type of equity investment

• A regulatory body

• A repurchase agreement

• A financial market