Banking Awareness Based on Various instruments of Money Markets | Daily Banking Awareness Quiz

Banking Awareness Based on Various instruments of Money Markets | Daily Banking Awareness Quiz 

Banking Awareness is the most important subject in the mains examinations of bank and insurance exams.  Various instruments of Money Markets Quiz is a very vital topic of the Banking awareness section. Various instruments of Money Markets Quiz is a very scoring topic. We are providing  Various instruments of Money Markets quiz based on the banking awareness syllabus. This  Various instruments of Money Markets Quiz provided on our website can be helpful for different exams such as IBPS PO, SBI PO, RRB PO, IBPS clerk, SBI clerk. This Various instruments of Money Markets Quiz on our website comes with analysis and explanation highlighting important areas of Banking awareness.

Q1. In what denominations Commercial Paper (CP) can be issued?
(a)Rs.5 lakh
(b)Rs.10 lakh
(c)Rs.2 lakh
(d)Rs.1 lakh
(e)None of these

Answer & Explanation
Ans.1.(a)
Exp. Commercial Paper (CP) can be issued in denominations of Rs.5 lakhs.

Q2. The negotiable Certificate of deposit are traded in?
(a)Indirect Market
(b)Direct Market
(c)Secondary Market
(d)Primary Market
(e)All of the above

Answer & Explanation
Ans.2.(c)
Exp. The Certificate of deposit are traded in Secondary Market.

Q3. Treasury bills (T-bills) are issued by the Government of India are ______ market instruments.
(a)Short term money
(b)Negotiable money
(c)Unsecured money
(d)Long term money
(e)None of these

Answer & Explanation
Ans.3.(a)
Exp. Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India.

Q4.  Money lent for more than one day but less than 15 days in the money market is known as ____.
(a)Hot Money
(b)Narrow Money
(c)Term Money
(d)Notice Money
(e)Call Money

Answer & Explanation
Ans.4.(d)
Exp. Money lend for more than one day and 14 days which is known as notice money.

Q5. The minimum amount of investment required to issue a certificate of deposit is _______.
(a)Rs. 3 lakhs
(b)Rs. 1 lakh
(c)Rs. 1.5 lakhs
(d)Rs. 5 lakhs
(e)Rs. 50,000

Answer & Explanation
Ans.5.(b)
Exp. The minimum amount of investment should not be less than Rs. 1 lakh and in the multiples of 1 lakh thereafter.

Q6. Which of the following is not a Money Market Instrument?
(a)Certificate of Deposit
(b)Call Money
(c)T-Bills
(d)All are money market instruments
(e)None

Answer & Explanation
Ans.6.(d)
Exp. Certificate of Deposit, T-Bills, Call Money, T-Bills all are Money Market Instrument.

Q7. Maturity period of Commercial bill varies from:
(a)60 days, 90 days or 120 days
(b)50 days, 60 days or 90 days
(c)30 days, 60 days or 90 days
(d)40 days, 50 days or 90 days
(e)None of these

Answer & Explanation
Ans.7.(c)
Exp.  Commercial Bills are issued by the seller(drawer) on the buyer (drawee) for the value of goods delivered by him. These Bills are of 30 days, 60 days or 90 days maturity.

Q8. Which of the following best describes ‘Call Money Market Operations’?
(a)Funds are transacted for 2 to 14 days
(b)Funds are transacted on overnight basis
(c)Funds are transacted on monthly basis
(d)Funds are transacted on yearly basis
(e)None of the above statement

Answer & Explanation
Ans.8.(b)
Exp. Under call money market, funds are transacted on overnight basis.

Q9. Which of the following is not a part of Money Market?
(a)Call money
(b)Term money
(c)Commercial bills
(d)Capital market
(e)None of the above

Answer & Explanation
Ans.9.(d)
Exp. Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year.

Q10. Treasury Bills are issued for how many days?
(a)80days T-Bills, 182-day T-Bills and 367-days T-Bills.
(b)70days T-Bills, 183-day T-Bills and 363-days T-Bills.
(c)14-day, 91-day, 182-day and 364-day
(d)60days T-Bills, 184-day T-Bills and 366-days T-Bills.
(e)None

Answer & Explanation
Ans.10.(c)
Exp. Government of India issues four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day.

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