WorksheetsMoney Market
Total questions: 10
Worksheet time: 5mins
Which among the following is/are correct regarding Money Market?
Money Market is a market for short-term funds
Maturity in this market ranging from overnight to one year
The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
Maturity in this market is above one year
Who issues treasury bills( T-bills) in India
RBI
SBI
Govt. of India
all of above
Which among the following helps RBI to manage liquidity conditions in the economy with banks having an avenue to surplus funds or avail funds?
Repos
Reverse repos
Money market Mutual Funds
SLR
ESOP stands for:
Efficient servicing of promises
Employees' service option projects
employees stock option plan
Effective system of projects
Full form of DFHI:
Developed Finance House of India
Discount and Finance House of India
Developing Financial House of India
Discounted Finance House of India
Problem of money market:
Portfolio management
Economizes the use of cash
Seasonal fluctuations
Implementation of monetary policy
The banks use
treasury bills to maintain their SLR and CRR due to its __________
Returns
Liquidity
Profits
Growth
In general, money market securities have which of the following characteristics?
I. Low trading cost (high liquidity)
II. Low default risk
III. Large denominations
IV. High rate of return
V. Maturity greater than one year
I, II, and III
II, III and IV
I, II and V
I, III and V
Investors that can directly purchase money market instruments are banks, non-banks financial institutions, government, and retail investors.
True
False
Buying and selling of money market instruments by the government is under which type of monetary policy tools?
Discount order
Statutory reserve requirement
Open market operation
Liquidity coverage ratio
