35. Money Markets & Monetary Policy

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Which of the following is/are Money Market Instruments?

Treasury Bills

Commercial Papers

Certificate of Deposits

All of the above

What is the Bank Rate as per RBI's current definition?

The rate at which RBI is ready to buy or rediscount bills of exchange or other commercial papers eligible for purchase

The rate at which RBI lends short-term funds to banks against government securities under repo operations

The rate at which commercial banks lend money to their customers

The rate at which banks borrow overnight funds from RBI without collateral

Interest rate risk falls under which risk category?

Credit risk

Liquidity risk

Market risk

Operational risk

What is a mutual fund that invests in other mutual funds called?

Pool

ETF (Exchange-Traded Fund)

FOF (Fund of Funds)

Portfolio

RBI conducts open market operations mainly in which market?

Primary market only

Secondary market only

Both primary and secondary markets

Gilt-edged market

Current Affairs