Money and Money Market
Exam Duration: 45 Mins Total Questions : 25
Commercial paper can be issued
- (a)
by all corporates
- (b)
by all corporates with net worth of atleast Rs.10 crore
- (c)
by all corporates with net worth of atleast Rs.5 crore
- (d)
can be issued only by banks
- (e)
All of the above
Commercial bills market is a part of
- (a)
organised money market
- (b)
unorganised money market
- (c)
stock market
- (d)
capital market
- (e)
None of the above
Intrest is usually paid on money market instruments
- (a)
at maturity
- (b)
on request
- (c)
twice a year
- (d)
annually
- (e)
All of these
If the monetary standard based on gold, it is called
- (a)
gold standard
- (b)
silver standard
- (c)
double standard
- (d)
multi-standard
- (e)
None of these
The gold standard was broken down in the year
- (a)
1936
- (b)
1946
- (c)
1956
- (d)
1966
- (e)
1970
Inflation can defined as
- (a)
a persistent rise in general price level
- (b)
a persistent fall in general price level
- (c)
an increase purchasing power
- (d)
increase in value of money
Reason for cost push inflation is
- (a)
increase in wage rate
- (b)
increase in interest rate
- (c)
increase in the price of raw material
- (d)
increase in indirect tax
- (e)
decrease in cost of production
Which of the following is not reason for demand pull inflation?
- (a)
Shortage of customer goods
- (b)
More exports
- (c)
Economic growth
- (d)
Less import
- (e)
More export and less imports
During inflation,
- (a)
exports becomes more expensive
- (b)
exports becomes more cheap
- (c)
imports becomes more expensive
- (d)
surplus balance of payement
- (e)
All of the above
Suppose a waiter deposits his cash tips into his savings account.As a result of only this transaction,
- (a)
M2 increase
- (b)
M1 decreases
- (c)
M2 decreases
- (d)
M3 increases
- (e)
Both 1 and 2
Deflation depresses aggregate demand because of
- (a)
the wealth effect
- (b)
the expectations effect
- (c)
the income effect
- (d)
the consumption effect
- (e)
All of the above
Government securities with terms of more than 1 year are called
- (a)
government bonds
- (b)
treasury bills
- (c)
bills of exchange
- (d)
capital bills
Money that government has required to be accepted in settlement of debts is
- (a)
barter money
- (b)
commodity money
- (c)
legal tender
- (d)
currency value
- (e)
None of these
M1
- (a)
includes the most liquid forms of money
- (b)
is the narrowest definition of the money supply
- (c)
largely consists of transactions account balances
- (d)
All of the above
- (e)
None of the above
Transaction account balances are included in
- (a)
only M1
- (b)
only M2
- (c)
only M3
- (d)
All of these
- (e)
None of these
Currency in circulation is include in
- (a)
Only M1
- (b)
Only M2
- (c)
Only M3
- (d)
All of these
- (e)
None of these
Savings account are included in
- (a)
M1,M2,and M3
- (b)
M12 but not M2
- (c)
M2 but not M3
- (d)
M2 and M3
- (e)
M1 and M3
Which of the following is not a money market instrument?
- (a)
Treasury Bills
- (b)
Commercial paper
- (c)
Certificate of Deposit
- (d)
Equity Share
- (e)
None of these
Which of the following cannot issue a Commercial Paper?
- (a)
Companies
- (b)
Primary dealers
- (c)
Commercial Banks
- (d)
All Indian Financial Institution
- (e)
None of these
Maximum period for which a commercial paper can be issued is
- (a)
3 months
- (b)
6 months
- (c)
1 year
- (d)
2 years
- (e)
None of these
Treasury Bills means
- (a)
salary bills drawn by Government officials on the treasury
- (b)
bills drawee by the Government contractors and other supplies on the treasury for the dues owed to them by the Government
- (c)
obligation of the Government of India issued by the Reserve Bank of India and payable normally 91 days after issue.
- (d)
a mode of drawings by the Treasury Office on the Reserve Bank of India
- (e)
None of the above
Which one of the following is the major component of the money supply in the Indian Economy?
- (a)
Currency component
- (b)
Deposit component
- (c)
Treasury bill with public
- (d)
Both 1 and 2
- (e)
Both 2 and 3
According to the norms prescribed by RBI for setting up of white label ATMs, what is the minimum net worth the NBFCs should have?
- (a)
Rs.50 crore
- (b)
Rs.75 crore
- (c)
Rs.100 crore
- (d)
Rs.200 crore
- (e)
Rs.150 crore
Money laundering normally involved
- (a)
placement of funds
- (b)
layering of funds
- (c)
integrating of fund
- (d)
All of the above
- (e)
None of the above
When a nation's money supply persistently increase at a faster rate than the nation can increase its output of goods and services, which of the following happens?
- (a)
Budget deficits increase
- (b)
Inflation occurs
- (c)
Real output accelerates
- (d)
Living standards rise