Post Session Quiz - Introduction To Money Market
6 Questions
| Attempts: 234
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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