Money Market Quiz

Which of the following cannot issue a Commercial Paper?

• Commercial Banks

• Primary Dealers

• All Indian Financial Institutions

• Companies

Treasury Bills means:

• Bills drawn by Government contractors on the treasury

• A mode of drawings by the Treasury Office on the Reserve Bank of India

• Salary bills drawn by Government officials on the treasury

• Obligation of the Government of India issued by the Reserve Bank of India

What is the maximum duration for which term money can be lent/borrowed?

• 15 days

• 30 days

• 1 year

• 1 day

What is the maturity period for Treasury Bills?

• 91 days, 182 days, and 364 days

• 30 days, 60 days, and 90 days

• 1 month, 3 months, and 6 months

• 1 year, 2 years, and 3 years

Which of the following is a characteristic of the money market?

• Formal trading platforms

• Deals in short-term funds

• Highly volatile market

• Long-term investments

What is the minimum amount for bidding in the T-bill market?

• Rs. 50,000

• Rs. 1,00,000

• Rs. 10,000

• Rs. 5,000

Which institution primarily issues Treasury Bills?

• Reserve Bank of India

• Commercial Banks

• State Governments

• Private Corporations

What is the maturity period for Commercial Papers?

• 1 year to 3 years

• 1 month to 6 months

• 30 days to 90 days

• 15 days to 1 year

Which of the following is a function of the money market?

• Providing loans for real estate

• Long-term capital formation

• Balancing mechanism for demand and supply

• Regulating stock market prices

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

• Directly sets interest rates

• Indirectly intervenes through repo transactions

• Issues new currency notes

• Regulates foreign exchange