Question 1

The proportion of deposits that banks have to keep with RBI is

Accepted Answer

A) CRR 
B) SLR 
C) PLR 
D) none of these 
A) CRR 
B) SLR 
C) PLR 
D) none of these A

Question 2

-------------.means a number of securities/assets put together.

Accepted Answer

A) Investment 
B) portfolio 
C) savings 
D) none of these 
A) Investment 
B) portfolio 
C) savings 
D) none of these B

Question 3

for issuing commercial papers

Accepted Answer

A) Prior approval of RBI is not required 
B) Prior approval of RBI is required 
C) Prior approval of SEBI is required 
D) None of these 
A) Prior approval of RBI is not required 
B) Prior approval of RBI is required 
C) Prior approval of SEBI is required 
D) None of these A

Question 4

If the credit quality of the issuer deteriorates, market expects

Accepted Answer

A) Lesser rate of interest 
B) Higher rate of interest 
C) Zero rate of interest 
D) None of these 
A) Lesser rate of interest 
B) Higher rate of interest 
C) Zero rate of interest 
D) None of these

Question 5

Which of the following was set up mainly for providing finance to private sector?

Accepted Answer

A) IDBI 
B) IFCI 
C) ICICI 
D) all of these 
A) IDBI 
B) IFCI 
C) ICICI 
D) all of these

Question 6

Debt instruments which have a maturity of less than one year called -------------.

Accepted Answer

A) Secondary market instruments 
B) money market instruments 
C) capital market instruments 
D) none of these 
A) Secondary market instruments 
B) money market instruments 
C) capital market instruments 
D) none of these

Question 7

------------- is a vehicle to get entry into the asset classes.

Accepted Answer

A) Capital market 
B) Mutual fund 
C) Debt market 
D) all of these 
A) Capital market 
B) Mutual fund 
C) Debt market 
D) all of these

Question 8

-------------- creates high risk and is illegal.

Accepted Answer

A) Speculation 
B) Gambling 
C) Investment 
D) all of these 
A) Speculation 
B) Gambling 
C) Investment 
D) all of these

Question 9

Debt market instruments have a maturity of

Accepted Answer

A) Less than one year 
B) Less than six months 
C) More than one year 
D) None of these 
A) Less than one year 
B) Less than six months 
C) More than one year 
D) None of these

Question 10

Callable bonds mean

Accepted Answer

A) Subscriber has the right to demand money before the time 
B) Issue has the right to redeem before the time 
C) Investor can request for redemption any time 
D) None of these 
A) Subscriber has the right to demand money before the time 
B) Issue has the right to redeem before the time 
C) Investor can request for redemption any time 
D) None of these

Question 11

Money market instruments have a maturity of

Accepted Answer

A) Less than one year 
B) Less than six months 
C) More than one year 
D) None of these 
A) Less than one year 
B) Less than six months 
C) More than one year 
D) None of these

Question 12

For issuing commercial papers,

Accepted Answer

A) Credit rating is a must 
B) credit rating is optional 
C) underwriting is a must 
D) None of these 
A) Credit rating is a must 
B) credit rating is optional 
C) underwriting is a must 
D) None of these

Question 13

Irredeemable bond is also known as

Accepted Answer

A) Fully convertible bond 
B) Perpetual bond 
C) Partially convertible bond 
D) None of these 
A) Fully convertible bond 
B) Perpetual bond 
C) Partially convertible bond 
D) None of these

Question 14

The pivotal position in the Indian money market is adorned by

Accepted Answer

A) Commercial bank 
B) non banking financial companies 
C) RBI 
D) none of these 
A) Commercial bank 
B) non banking financial companies 
C) RBI 
D) none of these

Question 15

Zero coupon bonds mean

Accepted Answer

A) Fixed rate of interest 
B) Zero rate of interest 
C) Higher rate of interest 
D) None of these 
A) Fixed rate of interest 
B) Zero rate of interest 
C) Higher rate of interest 
D) None of these

Question 16

------------- is postponement of current consumption

Accepted Answer

A) money 
B) savings 
C) investments 
D) all of these 
A) money 
B) savings 
C) investments 
D) all of these

Question 17

The rate at which RBI lends short term funds to bank is

Accepted Answer

A) Reverse repo rate 
B) repo rate 
C) interest rate 
D) none of these 
A) Reverse repo rate 
B) repo rate 
C) interest rate 
D) none of these

Question 18

Debenture trading is ------------- in India.

Accepted Answer

A) popular 
B) not popular 
C) prohibited 
D) none of these 
A) popular 
B) not popular 
C) prohibited 
D) none of these

Question 19

Money market include

Accepted Answer

A) Only organized players 
B) only unorganized players 
C) both organized and unorganized players 
A) Only organized players 
B) only unorganized players 
C) both organized and unorganized players

Question 20

Floating rate bonds carry

Accepted Answer

A) Fixed rate of interest 
B) Varying rate of interest 
C) Zero rate of interest 
D) None of these 
A) Fixed rate of interest 
B) Varying rate of interest 
C) Zero rate of interest 
D) None of these

The proportion of deposits that banks have to keep with RBI is

-------------.means a number of securities/assets put together.

for issuing commercial papers

If the credit quality of the issuer deteriorates, market expects

Which of the following was set up mainly for providing finance to private sector?

Debt instruments which have a maturity of less than one year called -------------.

------------- is a vehicle to get entry into the asset classes.

-------------- creates high risk and is illegal.

Debt market instruments have a maturity of

Callable bonds mean

Money market instruments have a maturity of

For issuing commercial papers,

Irredeemable bond is also known as

The pivotal position in the Indian money market is adorned by

Zero coupon bonds mean

------------- is postponement of current consumption

The rate at which RBI lends short term funds to bank is

Debenture trading is ------------- in India.

Money market include

Floating rate bonds carry

Equity Cult, Market and Investment in India

Financial Markets and Instruments

Money and Bond Market

Financial Terminology and Analysis

Investment and Market Analysis

Investment and Risk Analysis

Investment and Market Efficiency

Filters

Exam 3: Financial Concepts and Regulations in the Money Market

The proportion of deposits that banks have to keep with RBI is

-------------.means a number of securities/assets put together.

for issuing commercial papers

If the credit quality of the issuer deteriorates, market expects

Which of the following was set up mainly for providing finance to private sector?

Debt instruments which have a maturity of less than one year called -------------.

------------- is a vehicle to get entry into the asset classes.

-------------- creates high risk and is illegal.

Debt market instruments have a maturity of

Callable bonds mean

Money market instruments have a maturity of

For issuing commercial papers,

Irredeemable bond is also known as

The pivotal position in the Indian money market is adorned by

Zero coupon bonds mean

------------- is postponement of current consumption

The rate at which RBI lends short term funds to bank is

Debenture trading is ------------- in India.

Money market include

Floating rate bonds carry

Equity Cult, Market and Investment in India

Financial Markets and Instruments

Money and Bond Market

Financial Terminology and Analysis

Investment and Market Analysis

Investment and Risk Analysis

Investment and Market Efficiency

Filters