Saturday, 15 February 2020

Banking Awareness Money Market Instruments

Banking Awareness
 Money Market Instruments 

๐Ÿ’ 1). Money market instruments has maturity period – Less than a year
๐Ÿ’ 2). In Inter bank market operations where funds are borrowed and lent for 1 day or less is known as – Call money
๐Ÿ’ 3). Where money is borrowed or lend for a period exceeding 14 days is known as – Term Money
๐Ÿ’ 4). Capital Market is used for ______ purpose. – Long term
๐Ÿ’ 5). Who issues Treasury bills (T-bills) in India – Government of India
๐Ÿ’ 6). The maximum time period of T-Bills is – 364 days
๐Ÿ’ 7). The minimum amount for which T-Bills issued in India is – 25,000
๐Ÿ’ 8). What is the maximum amount for which T-bills are issued in India – T-Bills doesn’t have any upper ceiling
๐Ÿ’ 9). The Reserve bank of India conducts 91 day T-Bill auction – Every Wednesday
๐Ÿ’ 10). What does first S stands for in MSS – Stabilization
๐Ÿ’ 11). Cash Management Bills in India are non-standard, discounted instruments issued for maturities less than ______ days. – 91
๐Ÿ’ 12). T-bills auctions are held on ______ platform. – Negotiated Dealing system
๐Ÿ’ 13). All of the following are money market instruments except – Indian Depository Receipt
๐Ÿ’ 14). Commercial Paper (CP), a money market instrument which was introduced in – 1990
๐Ÿ’ 15). What does F stands for in FIMMDA – Fixed
๐Ÿ’ 16). The minimum denomination for which Commercial Paper can be issued is Rs– 5,00000
๐Ÿ’ 17). The maximum maturity period of Commercial Paper (CP) is – 1 year
๐Ÿ’ 18). What is the minimum maturity period of Commercial Paper – 7 days
๐Ÿ’ 19). The headquarter of FIMMDA is in – Mumbai
๐Ÿ’ 20). Corporate’s with minimum net worth of _____ only allowed to issue Commercial Paper. – 4 Cr
๐Ÿ’ 21). The minimum credit rating required by corporates and other issuer to issue Commercial Paper is – A-2
๐Ÿ’ 22). Which of the following institutions cannot issue Commercial Paper (CP) – Scheduled Commercial Banks
๐Ÿ’ 23). For issuance of CP , only Scheduled Banks allowed to act as – IPA
๐Ÿ’ 24). The minimum deposit under Certificate of Deposit (CD) is Rs – 1,00000
๐Ÿ’ 25). What is the maximum amount for which CDs can be issued – No such limit
๐Ÿ’ 26). The minimum maturity period of a CD issued by a bank is – 7 days
๐Ÿ’ 27). What is the maximum maturity period of a CD issued by a bank – 1 year
๐Ÿ’ 28). The minimum maturity period of a CD issued by the Financial Institution is – 1 year
๐Ÿ’ 29). The maximum maturity period of a CD issued by the Financial Institution is – 3 year
๐Ÿ’ 30). Which of the following cannot issue the Certificate of Deposit (CD) – Regional Rural Banks,  Local Area Banks

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