Money Market
10 Questions
| Attempts: 139
All the questions for this quiz are about Money Market and it help students understand better.
Questions and Answers
- 1.
What is the likely maturity for inter-company MM?
- A.
Overnight
- B.
Seven days
- C.
One month
- D.
One year
Correct Answer
A. Overnight -
- 2.
What is a Money Market?
Correct Answer
The core of the money market consists of banks borrowing and lending to each other for short periods of time over-the-counter (OTC).
A wholesale “virtual” place where market participants borrow and lend money on short-term basis. MM trades are done over-the-counter (OTC) - 3.
What are the economic terms to be capture in the deal ticket for MM trade besides information on the counterparty and nostro accounts?
- 4.
How banks charge when quoting interest rate to corporate customer?
- A.
Higher than inter-bank rates
- B.
Lower than inter-bank rates
- C.
Equal to inter-bank rates
- D.
Not fixed
Correct Answer
A. Higher than inter-bank rates -
- 5.
How do banks determine credit rating of borrowers?
Correct Answer
Bank's own Credit Committee and Credit Rating Agencies - 6.
Why is there a need for inter-bank MM trades?
- 7.
List all different types of Money Market Trades available in the financial markets.
Correct Answer
Inter-bank Money Market, Corporate Money Market and Inter-company Money Market - 8.
Who are the Money Market participants?
Correct Answer
Governments through Central Banks, Banks and Large Corporations - 9.
What is the range of Money Market maturity?
- A.
Between overnight and seven days
- B.
Between one day and one month
- C.
Between one day and one year
- D.
Between one month and one year
Correct Answer
C. Between one day and one year -
- 10.
How much is the interest rate charged or payable when banks lend or borrow from each other?
Correct Answer
The interest rate is not fixed but dependent on many factors including market conditions and counterparty's credit rating.
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Current Version
-
Jul 30, 2011Quiz Edited by
ProProfs Editorial Team -
Nov 29, 2009Quiz Created by
Secret_85
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