Post Session Quiz - Introduction To Money Market

6 Questions | Total Attempts: 202

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Money Quizzes & Trivia

Questions and Answers
  • 1. 
    The money markets are used for which of the following?
    • A. 

      Long-term borrowing

    • B. 

      Short-term borrowing

    • C. 

      Both long-term and short-term borrowing

  • 2. 
    Which of the following transactions are NOT carried out in the money market?
    • A. 

      Buying or selling government bonds

    • B. 

      Buying or selling stocks

    • C. 

      Buying or selling deposits

    • D. 

      Borrowing or lending short-term funds

  • 3. 
    Central banks are not permitted to participate in the money market.
    • A. 

      True

    • B. 

      False

  • 4. 
    Which of the following represents the time-span associated with money market transactions?
    • A. 

      One year or less

    • B. 

      One to 10 years

    • C. 

      10 years or more

  • 5. 
    A receipt is issued by a bank to a depositor to acknowledge money deposited. The bank guarantees to repay the principal plus interest at maturity.The receipt could be sold in the Market at a price. The above definition refers to which of the following?
    • A. 

      Call deposit

    • B. 

      Certificate of deposit

    • C. 

      Fixed deposit

    • D. 

      Bankers Acceptance

  • 6. 
    Which one of the following instruments is used in trade finance to make the process of payment for goods more efficient?
    • A. 

      Bills of exchange

    • B. 

      Commercial paper

    • C. 

      Repos

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