54-Instruments of Money Market

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1).
Which of the following are money markets instruments?
2).
On which of the following instruments is the rate of return calculated on a 'discount basis'?
3).
Liquidity status of certificate of deposit which is more negotiable is considered as?
4).
Commercial paper issued with low interest rate thus commercial paper are categorized as
5).
Maximum maturity days of holding commercial paper are
6).
In borrowing and lending of federal funds, federal funds rate is result of function between which of the following?
7).
The demand for heavy loans can lead to which of the following?
8).
Which among the following helps RBI to manage liquidity conditions in the economy with banks having an avenue to surplus funds or avail funds?
9).
Which among them is responsible for maintaining a Minimum reserve system against printing of currency notes?
1. Which of the following are money markets instruments?
[A] A 14-day repurchase agreement of Treasury 8% 2007
[B] A treasury bill with 7 days to maturity
[C] A 3-month certificate of deposit
[D] All of the above
2. On which of the following instruments is the rate of return calculated on a ‘discount basis’?
[A] Commercial paper
[B] Commercial bills
[C] Both 1 and 2
[D] Neither 1 nor 2
3. Liquidity status of certificate of deposit which is more negotiable is considered as?
[A] certified liquidity
[B] term liquidity
[C] more liquid
[D] less liquid
4. Commercial paper issued with low interest rate thus commercial paper are categorized as
[A] payables rating
[B] commercial rating
[C] poor credit rating
[D] better credit rating
5. Maximum maturity days of holding commercial paper are
[A] 170 days
[B] 270 days
[C] 120 days
[D] 5 days
6. In borrowing and lending of federal funds, federal funds rate is result of function between which of the following?
[A] supply and demand
[B] assets and liability
[C] Cost and marketing
[D] Income and expense
7. The demand for heavy loans can lead to which of the following?
[A] excess funds for banks
[B] Deficiencies for banks
[C] Organized reservation
[D] Competitive reservations
8. Which among the following helps RBI to manage liquidity conditions in the economy with banks having an avenue to surplus funds or avail funds?
[A] SLR
[B] Money market Mutual Funds
[C] Reverse repos
[D] Repos
9. Which among them is responsible for maintaining a Minimum reserve system against printing of currency notes?
[A] Issue Department
[B] Banking Department
[C] Both 1 & 2
[D] None of the above
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