Banking Awareness Quiz for Bank Exams 2021- 12th May

Q1.Money Market is regulated by……………
(a)IRDAI
(b)RBI
(c)NSDL
(d)IBA
(e)None of these

Q2._________ is a market for lending & borrowing of short term funds.
(a)Primary market
(b)Capital market
(c)Share market
(d)Money market
(e)None of these

Q3.Which of the following is not a money market instrument?
(a)Commercial Papers
(b)Treasury Bills
(c)Equity Share
(d)Certificates of Deposit
(e)All of these

Q4.Which of the following is not an Instrument of Capital Market?
(a)Commercial Papers
(b)Debentures
(c)Shares
(d)Bonds
(e)None of these

Q5.Money Market Instruments mature within……………………..
(a)A month
(b)A year
(c)Three months
(d)Six months
(e)None of these

Q6.__________ is the organisations, institutions that provide long term funds.
(a)Primary market
(b)Capital market
(c)Share market
(d)Money market
(e)None of these

Q7.What is the maturity period of treasury bills?
(a) 91 and 182 days
(b) 14 and 81 days
(c) 91, 182 and 364 days
(d) 91 and 174 days
(e) None of these

Q8.What is/are the features of Money Market?
(a)It’s maturity period up to one year
(b)It’s fund-term market funds
(c)Broker not required for the transaction
(d)It trades with assets that can be transformed into cash easily
(e) All of these

Q9. ____________ is also called zero coupon bonds.
(a)Call money
(b)Treasury bills
(c)Commercial papers
(d)Trade bills
(e)None of these

Q10.__________ refers to borrowing/lending of funds for period between 15 days and one year.
(a)Call Money
(b)Notice Money
(c)Term Money
(d)Forward Money
(e)None of these

Practice More Questions of Banking Awareness for Competitive Exams:

Solutions

S1.Ans.(b)
Sol. RBI is regulator in money market .It regulates short term interest rates ,money supply deposits credit and investment.

S2.Ans.(d)
Sol. The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods, typically up to twelve months.

S3.Ans.(c)
Sol. The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year.

S4.Ans.(a)
Sol.Commercial Papers is not an Instrument of Capital Market.

S5.Ans.(b)
Sol.Money Market Instruments mature within a year.

S6.Ans.(b)
Sol. Capital market refers to facilities and institutional arrangements through which long-term fund, both debt and equity are raised and invested.

S7.Ans.(c)
Sol. At present, treasury bills are issued in three maturities — 91-day, 182-day and 364-day.

S8.Ans.(e)
Sol. Some general money market features are-It is fund-term market funds, It’s maturity period up to one year, It trades with assets that can be transformed into cash easily, All the transactions take place through phone, email, text, etc., Broker not required for the transaction, The components of a money market are the Commercial Banks, Non-banking financial companies, and Central Bank etc.

S9.Ans.(b)
Sol. Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest.

S10.Ans.(c)
Sol. Term Money means deals in funds for 15 days-1 year.