Free Printable Financial Market -Money and Debt Markets

1.

Which money market instrument is highly liquid, negotiable and there is possibility of inter bank repos. They are available for a minimum amount of Rs 25,000 and multiple.

a)

Treasury Bills

b)

Commercial Papers

c)

Commercial Bills

d)

Certificates of Deposits

2.

Which of the following statement is correct with respect to Certificated of Deposits:

1. They are unsecured negotiable instruments.

2. Commercial Banks and Finacial institutions can issue CD.

3. CDs are issued by banks during tight liquidity.

4. CDs are subject to CRR and SLR requirements

a)

only 1 and 2

b)

Only1 and 3

c)

Only 2 ans 4

d)

1,2,3 and 4

3.

Who among the following is NOT a participant in Call money market?

a)

Schedule Commercial Banks

b)

Government

c)

DFHI

d)

state and urban cooperative bank

4.

Reserve requirements include which of the following"

a)

CRR

b)

SLR

c)

Both (A) and (B)

d)

None

5.

Which of the following is true for Money market Mutual Funds-

a)

affordable

b)

professionally managed

c)

very liquid

d)

None of these

6.

What is the minimum limit of Commercial Paper, an instrument of Money Market?

a)

Rs 5 Lac

b)

Rs 10 Lac

c)

Rs 1 Lac

d)

Rs 20 Lac

7.

Commercial paper has maturity of around how many days?

a)

1 day to 1 year

b)

10 days to 1 year

c)

15 days to 1 year

d)

More than one of the above

8.

The interest rate at which the Reserve Bank absorb liquidity from banks under Liquidity Adjustment facility,on an overnight basis, against the collateral of eligible government securities, is called..............

a)

Marginal standing Facility

b)

Bank Rate

c)

Repo Rate

d)

Reserve Repo Rate

9.

Which of the following is not a quantitative tool of money supply used by RBI?

a)

Bank Rate

b)

Repo rate

c)

Reserve Repo Rate

d)

Margin requirement

10.

The separate segment for trading in debt securities set up by NSE is

a)

Negotiated Dealing System

b)

Wholesale Debt Market

c)

NDS-OM

d)

National Exchange for Automated Trading

11.

Which of the following is not a money market instrument?

a)

Bonds

b)

Treasury Bill

c)

CoD

d)

Commercial Paper

12.

Role of Debt market is/are

a)

efficient mobilization and allocation of resources

b)

financing the developmental activities

c)

facilitating liquidity management

d)

All of the above

13.

Debt market is the market for

a)

Fixed income securities

b)

variable income securities

c)

hybrid securities

d)

Convertible securities

14.

State Government can raise funds from the market through-

a)

Treasury Bills

b)

SDL

c)

Commercial Papers

d)

Debentures

15.

Full Form of MIBOR is

(a)

16.

Who among the following is NOT a participant in Call money market?

a)

Schedule Commercial Banks

b)

Government

c)

DFHI

d)

state and urban cooperative bank

17.

The bonds that need to have a rating above the investment grade and have a maturity period of 3 years, before being issued to the public.

a)

Corporate Bonds

b)

Municipal Bonds

c)

Deferred coupon bonds

d)

Deep discount Bonds

18.

The Bonds that are issued at a discount and redeemed at face value.

a)

Zero Coupon Bonds

b)

Deferred payment Bonds

c)

Sovereign Gold Bond

d)

None of the above

19.

STRIPS stands for

a)

Separate Trading of Registered Interest and Principal of Securities

b)

Sovereign Transcript for Real income and Provision Scheme

c)

Single Trading of Real Interest and Principal of Securities

d)

Separate Trading of Real Interest and Provident Scheme

20.

Auction is conducted for -

a)

Primary market issuance of Private Corporate Bonds

b)

Primary market issuance of Public Sector Bonds

c)

Primary market issuance of Government Securities

d)

Primary market issuance of equity shares

Financial Market -Money and Debt Markets

Total questions: 20

Worksheet time: 11mins

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