General Awareness Quiz for ECGC PO & Bank Mains Exams 2021- 17th January

Q1. Commercial paper can be issued for a maximum period of:
(a)3 months
(b)2 years
(c)6 months
(d)365 days or 1 year
(e)140 days

Q2. Who regulates the money market in India?
(a)Reserve Bank of India
(b)Securities and Exchange Board of India (SEBI)
(c)Commercial Banks
(d)Pension Fund Regulatory and Development Authority
(e)Both A & B

Q3. Who is eligible to invest in Commercial Papers (CPs):
(a)Individuals, corporate bodies
(b)banking companies
(c)Non-Resident Indians (NRIs)
(d)Foreign Institutional Institutions (FIIs)
(e)All of the above

Q4. Certificate of Deposit (CD) is an _____ instrument.
(a)Demand deposit
(b)Long term
(c)Negotiable money market
(d)Unsecured money market
(e)None of these

Q5. Commercial Paper are linked to____.
(a)Unorganized market
(b)Money market
(c)Regulated market
(d)Government market
(e)Unorganized market

Q6. In what denominations Commercial Paper (CP) can be issued?
(a)Rs.5 lakh
(b)Rs.10 lakh
(c)Rs.2 lakh
(d)Rs.1 lakh
(e)None of these

Q7. The negotiable Certificate of deposit are traded in?
(a)Indirect Market
(b)Direct Market
(c)Secondary Market
(d)Primary Market
(e)All of the above

Q8. Treasury bills (T-bills) are issued by the Government of India are ______ market instruments.
(a)Short term money
(b)Negotiable money
(c)Unsecured money
(d)Long term money
(e)None of these

Q9. Money lent for more than one day but less than 15 days in the money market is known as ____.
(a)Hot Money
(b)Narrow Money
(c)Term Money
(d)Notice Money
(e)Call Money

Q10. The minimum amount of investment required to issue a certificate of deposit is _______.
(a)Rs. 3 lakhs
(b)Rs. 1 lakh
(c)Rs. 1.5 lakhs
(d)Rs. 5 lakhs
(e)Rs. 50,000

Q11. Which of the following is not a Money Market Instrument?
(a)Certificate of Deposit
(b)Call Money
(c)T-Bills
(d)All are money market instruments
(e)None

Q12. Maturity period of Commercial bill varies from:
(a)60 days, 90 days or 120 days
(b)50 days, 60 days or 90 days
(c)30 days, 60 days or 90 days
(d)40 days, 50 days or 90 days
(e)None of these

Q13. Which of the following best describes ‘Call Money Market Operations’?
(a)Funds are transacted for 2 to 14 days
(b)Funds are transacted on overnight basis
(c)Funds are transacted on monthly basis
(d)Funds are transacted on yearly basis
(e)None of the above statement

Q14. Which of the following is not a part of Money Market?
(a)Call money
(b)Term money
(c)Commercial bills
(d)Capital market
(e)None of the above

Q15. Treasury Bills are issued for how many days?
(a)80days T-Bills, 182-day T-Bills and 367-days T-Bills.
(b)70days T-Bills, 183-day T-Bills and 363-days T-Bills.
(c)14-day, 91-day, 182-day and 364-day
(d)60days T-Bills, 184-day T-Bills and 366-days T-Bills.
(e)None

Solutions

S1.Ans(d)
Sol. Commercial paper can be issued for a maximum period of 1 year or 365 days.

S2.Ans(e)
Sol. RBI & SEBI regulates the money market in India

S3.Ans(e)
Sol. Individuals, corporate bodies (either registered or incorporated in India), banking companies, unincorporated bodies, Non-Resident Indians (NRIs) and Foreign Institutional Institutions (FIIs) can invest in CPs.

S4.Ans(c)
Sol. Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form.

S5.Ans(b)
Sol. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.

S6.Ans(a)
Sol. Commercial Paper (CP) can be issued in denominations of Rs.5 lakhs.

S7.Ans(c)
Sol. The Certificate of deposit are traded in Secondary Market.

S8.Ans(a)
Sol. Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India.

S9.Ans(d)
Sol. Money lend for more than one day and 14 days which is known as notice money.

S10.Ans(b)
Sol. The minimum amount of investment should not be less than Rs. 1 lakh and in the multiples of 1 lakh thereafter.

S11.Ans(d)
Sol. Certificate of Deposit, T-Bills, Call Money, T-Bills all are Money Market Instrument.

S12.Ans(c)
Sol. Commercial Bills are issued by the seller(drawer) on the buyer (drawee) for the value of goods delivered by him. These Bills are of 30 days, 60 days or 90 days maturity.

S13.Ans(b)
Sol. Under call money market, funds are transacted on overnight basis.

S14.Ans(d)
Sol. Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year.

S15.Ans(c)
Sol. Government of India issues four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day.

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