(QUIZ) Economy MCQs : Money Market and Capital Market in India

1. Consider the following statements.

1. Certificates of deposit (CD), commercial paper (CP), Bill market are the instruments of money market. 
2. Call / Notice money is money borrowed or lent for a very short period. 
3. Treasury Bills are short-term money market instruments, which are issued by the RBI on the behalf of GOI.

Which of the above statements is / are true ?

1. 1 & 2 only
2. 2 & 3 only
3. 1, 2 & 3
4. 1 & 3 only

2. Consider the following statements.

1. A considerable part of the governments borrowings takes place through Treasury Bills.
2. Bonds with variable interest rates with a fixed percentage over a benchmark rate is called floating Rate Bonds. 
3. The minimum investment in government securities is Rs. 10000.

Which of the above statements is / are true ?

1. 1, 2 & 3
2. 2 & 3 only
3. 1 & 2 only
4. 1 & 3 only

3. Consider the following statements about mutual funds.

1. RBI Regulates mutual funds.
2. Mutual funds raise money from public & invest them in stock market securities. 
3. Mutual funds were virtually synonymous with the UTI.

Which of the above statements is / are true ?

1. 1, 2 & 3
2. 2 & 3 only
3. 1 & 3 only
4. 1 & 2 only

4. Consider the following statements.

1. Individuals who invest in Businesses looking for a higher return than possible from traditional investments is called Angel investors.
2. A company is treated as an NBFC (Non-banking financial company) if its financial assets are more than 50% of total assets & income from financial assets is more than 50% of the gross income.

Which of the above statements is / are true ?

1. 1 only
2. 2 only
3. Neither 1 nor 2
4. Both 1 & 2

5. Consider the following statements about external commercial borrowings (ECB).

1. ECBs can be raised through two routes Automatic & Approval.
2. RBI monitors & Regulate ECB.
3. ECBs cannot be used for investment in the stock market.
4. ECB access may be restricted when the there is a deluge of foreign inflows & the rupee is getting strong.

Which of the above statements is / are true ?

1. 1, 2, 3 & 4
2. 2 & 3 only
3. 1, 3 & 4 only
4. 1 & 2 only

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