Test What type of instruments are traded in a Money Market? Answer choices



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Test
1.What type of instruments are traded in a Money Market?

Answer choices

  1. Call money

  2. Treasury bills

  3. .Commercial bills

  4. .All of the above

2 The expected rate of return of the money market is ______
Answer choices

  1. Very high

  2. Less

  3. Zero

  4. None of the above

3.A treasury bill is an instrument of:
Answer choices

  1. Dividend

  2. Short term debt

  3. Long term debt Interest

4.Treasury bills are also known as:
Answer choices

  1. Fixed interest Bonds

  2. Flat Rate Bonds

  3. Low-Interest Bonds

  4. Zero-Coupon Bonds

5.A commercial bill is used to _____________
Answer choices

  1. Finance the working capital requirements

  2. Meet the short term debt

  3. Meet the long term debt

  4. Pay the interest

6.When a trade bill is accepted by a commercial bank, it is known as a _____

  1. Answer choices

  2. Commercial Bill

  3. Call money

  4. None of these

  5. Certificate of deposit

7.A capital market is ideal when:
Answer choices

  1. Financial institutions are sufficiently developed

  2. Finance is available at a reasonable cost

  3. Capital is most productively allocated

  4. All of these

8.Money market deals in _____________________
Answer choices

  1. Medium-term securities

  2. Short term Securities

  3. Long term Securities

  4. None of these

9.Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
Answer choices

  1. Offer through prospectus

  2. Offer for sale

  3. Rights issue

  4. Private placement

10.On this day, the exchange will deliver the share or make payment to the other broker
Answer choices
A Pay-in day
B Pay-out day
C.Transaction day
D None of the above
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