Money Market Instruments – Banking Awareness Quiz
Dear Aspirants,
Here
we are providing important questions collection on topic Money Market
Instruments that includes Call and Notice Money, Certificate of Deposits,
Commercial Papers, Inter-Corporate Deposits, etc. Aspirants those who are
preparing for the upcoming bank and insurance exams can make use of these Banking
Awareness Quiz.
1. If the tenor of transactions in Money Market
is 2 to 14 days, then it is known as -
a) Call
Money Market
b) Notice Money Market
c) Term
Money Market
d) None of
the above
2. Which of the following is a Money Market
Instrument?
a) Call
Money
b) T-Bills
c) Collateralized
Borrowing and Lending Obligations (CBLO)
d) All are Money Market Instruments
3. Repo borrowings by commercial banks from RBI
generally have a tenure of -
a) 1 day to
30 days
b) 1 day to 90 days
c) 1 day to
180 days
d) 1 day to
365 days
4. Which of the following is true regarding
Marginal Standing Facility (MSF)?
a) Tenure is 1 day, and 1% of NDTL of
banks is eligible for borrowing
b) Tenure
is 1 day, and 2% of NDTL of banks is eligible for borrowing
c) Tenure
is 30 days, and 1% of NDTL of banks is eligible for borrowing
d) Tenure
is 30 days, and 2% of NDTL of banks is eligible for borrowing
5. Which of the following is false regarding
borrowings of commercial banks from RBI under Bank rate?
a) Long
term borrowing, i.e., 90 days to 1 year
b) Collateral is needed
c) Bank
rate is generally greater than Repo rate
d) All are
true
6. Repo and Reverse Repo together is known as -
a) Liquidity
Assessment Facility
b) Liquidity Adjustment Facility
c) Liability
Assessment Facility
d) Liability
Adjustment Facility
7. Call Money deals with -
a) Overnight funds
b) funds of
2 to 14 days tenure
c) funds of
15 days to 1 year tenure
d) None of
the above
8. Call, Notice and Term Money are used by -
a) Scheduled
Commercial Banks, excluding RRBs
b) Cooperative
Banks, other than Land Development Banks
c) Primary
Dealers
d) All of the above
9. Which financial entities can issue
Certificate of Deposits (CDs)
a) Scheduled
Commercial Banks, excluding RRBs
b) Financial
Institutions permitted by RBI
c) Both (a) and (b)
d) None of
the above
10. Certificate of Deposits issued by banks -
a) are of min. Rs. 1 lakh and
multiple thereof, with maturity of 7 days to 1 year
b) are of
min. Rs. 5 lakh and multiple thereof, with maturity of 7 days to 1 year
c) are of
min. Rs. 1 lakh and multiple thereof, with maturity of 1 month to 1 year
d) are of
min. Rs. 5 lakh and multiple thereof, with maturity of 1 month to 1 year
11. Commercial Papers (CPs) are issued by -
a) Corporate,
with a good rating from CRA, which is registered with SEBI
b) Primary
Dealers
c) Financial
Institutions
d) All of the above
12. What is the minimum amount of CPs?
a) Rs. 1
lakh
b) Rs. 2
lakh
c) Rs. 5 lakh
d) Rs. 10
lakh
13. Which of the following instrument can be
issued by any corporate?
a) Certificate
of Deposits (CDs)
b) Commercial
Papers (CPs)
c) Inter-Corporate Deposits (ICDs)
d) Gilt-edged
securities
14. Which of the following arrangement is correct
regarding risks (more risk to low risk) of instruments?
a) CD >
CP > ICD
b) CD >
ICD > CP
c) ICD > CP > CD
d) CP >
ICD > CD
15. Which of the following is/are collateralized
lending?
a) lending
under repo rate
b) lending
under reverse repo rate
c) lending
under bank rate
d) both (a) and (b)
