Banking Awareness Money Market Instruments

Banking Awareness

 Money Market Instruments 

💠1). Money market instruments has maturity period – Less than a year

💠2). In Inter bank market operations where funds are borrowed and lent for 1 day or less is known as – Call money

💠3). Where money is borrowed or lend for a period exceeding 14 days is known as – Term Money

💠4). Capital Market is used for ______ purpose. – Long term

💠5). Who issues Treasury bills (T-bills) in India – Government of India

💠6). The maximum time period of T-Bills is – 364 days

💠7). The minimum amount for which T-Bills issued in India is – 25,000

💠8). What is the maximum amount for which T-bills are issued in India – T-Bills doesn’t have any upper ceiling

💠9). The Reserve bank of India conducts 91 day T-Bill auction – Every Wednesday

💠10). What does first S stands for in MSS – Stabilization

💠11). Cash Management Bills in India are non-standard, discounted instruments issued for maturities less than ______ days. – 91

💠12). T-bills auctions are held on ______ platform. – Negotiated Dealing system

💠13). All of the following are money market instruments except – Indian Depository Receipt

💠14). Commercial Paper (CP), a money market instrument which was introduced in – 1990

💠15). What does F stands for in FIMMDA – Fixed

💠16). The minimum denomination for which Commercial Paper can be issued is Rs– 5,00000

💠17). The maximum maturity period of Commercial Paper (CP) is – 1 year

💠18). What is the minimum maturity period of Commercial Paper – 7 days

💠19). The headquarter of FIMMDA is in – Mumbai

💠20). Corporate’s with minimum net worth of _____ only allowed to issue Commercial Paper. – 4 Cr

💠21). The minimum credit rating required by corporates and other issuer to issue Commercial Paper is – A-2

💠22). Which of the following institutions cannot issue Commercial Paper (CP) – Scheduled Commercial Banks

💠23). For issuance of CP , only Scheduled Banks allowed to act as – IPA

💠24). The minimum deposit under Certificate of Deposit (CD) is Rs – 1,00000

💠25). What is the maximum amount for which CDs can be issued – No such limit

💠26). The minimum maturity period of a CD issued by a bank is – 7 days

💠27). What is the maximum maturity period of a CD issued by a bank – 1 year

💠28). The minimum maturity period of a CD issued by the Financial Institution is – 1 year

💠29). The maximum maturity period of a CD issued by the Financial Institution is – 3 year

💠30). Which of the following cannot issue the Certificate of Deposit (CD) – Regional Rural Banks,  Local Area Banks