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Money Market Model Questions

12th Standard

    Reg.No. :
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Commerce

Time : 01:00:00 Hrs
Total Marks : 50
    10 x 1 = 10
  1. The money invested in the call money market provides high liquidity with _______

    (a)

    Low Profitability

    (b)

    High Profitability

    (c)

    Limited Profitability

    (d)

    Medium Profitability

  2. The market for buying and selling of Commercial Bills of Exchange is known as a _____

    (a)

    Commercial Paper Market

    (b)

    Treasury Bill Market

    (c)

    Commercial Bill Market

    (d)

    Capital Market

  3. Treasury Bills commands ________

    (a)

    High Liquidity

    (b)

    Low Liquidity

    (c)

    Medium Liquidity

    (d)

    Limited Liquidity

  4. A market for the purchase and sale of Treasury bills are known as

    (a)

    Treasury bills market

    (b)

    Call loan market

    (c)

    Bill market

    (d)

    None of these

  5. Certificate of Deposits are issued in the form of usance

    (a)

    Bill of exchange

    (b)

    Promissory notes

    (c)

    Commercial bills

    (d)

    None of these

  6. The Issuers of certificate of Deposits are

    (a)

    Drawer

    (b)

    Treasure bills

    (c)

    Commercial banks

    (d)

    Corporations

  7. Bills that are accompanied by documents of title to goods are called

    (a)

    Foreign bills

    (b)

    Indigeneous bills

    (c)

    Documentary bills

    (d)

    Demand bill

  8. Liquidity status of certificate of deposit which is more negotiable is considered as

    (a)

    certified liquidity

    (b)

    more liquid

    (c)

    term liquid

    (d)

    less liquid

  9. Certificate of deposits which are usually negotiable are issued by

    (a)

    banks

    (b)

    stock exchange

    (c)

    business corporations

    (d)

    financial market

  10. Negotiable deposit certificate are traded in

    (a)

    primary markets

    (b)

    direct markets

    (c)

    indirect markets

    (d)

    secondary markets

  11. 5 x 2 = 10
  12. Define the term "Money Market".

  13. What is commercial bill market?

  14. What is cut-off rate?

  15. Who are the issuers of certificate of deposits?

  16. Who are the subscribers of certificate of deposits?

  17. 5 x 3 = 15
  18. Explain the types of Treasury Bills? (any 3)

  19. What are the features of Certificate of Deposit?

  20. What are the types of Commercial Bill? (any 3)

  21. What are the objectives of money market?

  22. Write a short note on clean bills and documentary bills.

  23. 3 x 5 = 15
  24. Differenciate between the Money Market and Capital Market.(any 5)

  25. Explain the Instruments of Money Market?

  26. What are the characteristics of Government Securities? (any 5)

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