Money Market

Q.

Describe briefly the steps involved in starting a new business.

Q.

What is financial risk? Why does it arise?

Q.

Money market deals in_________

1. Short term Securities

2. Medium term securities

3. None of these

4. Long term Securities

Q.

What causes a shortage of a good? A price ceiling or price floor?

Q.

Why are money market instruments more liquid as compared to capital market instruments ?

Q.

What is the minimum price ceiling?

Q.

_________market instruments enjoy higher degree of liquidity.

1. Money market

2. Both money and capital market

3. None of these

4. Capital market

Q. A company requires Rs. 3 crore for inventory, payment of wages, salaries, maintaining bank balance etc. Which market must it approach?

1. Trading market
2. Money market
3. Financial market
4. Capital market

Q.

Only institutional investors can participate in _________.

1. Foreign Market

2. Loan Market

3. Money Market

4. Capital Market

Q.

The expected rate of return of the money market is _________.

1. More

2. Very high

3. Zero

4. Less

Q. Explain features of money market instruments.

Q.

Instruments with a maturity period of less than one year are traded in ______.

1. Capital Market

2. Money market

3. Stock Exchange

4. NSEI

Q. The maturity period of instruments of the money market ranges from one day to .

1. 15 days
2. 30 days
3. 6 months
4. 1 year

Q.

___ market deals with an instrument whose maturity is up to one year.

1. Money

2. Capital

3. Stock exchange

4. None of these

Q.

How long does it take to get a home equity loan?

Q.

Is rent control a price ceiling?

Q. Money market mutual funds ________.

1. enable individuals and small businesses to invest indirectly in money-market instruments
2. are available only to high net-worth individuals
3. are used in acquiring and placing mortgages
4. are mostly tradable on stock exchange

Q. market deals in short term instruments.

1. Money
2. Capital
3. Primary
4. Secondary

Q. A company requires Rs. 3 crore for inventory, payment of wages, salaries, maintaining bank balance etc. Which market must it approach?

1. Trading market
2. Money market
3. Capital market
4. Financial market

Q. Why are money market Instruments are more liquid a compared to capital market instruments?

Q.

Four hundred thirty-four foreign companies from 51 different countries had listed shares on the New York Stock Exchange. Recent research has examined that the companies mentioned above rely entirely on debt financing. Different types of debt give rise to different types of risk. Since foreign currency debt, by definition, requires repayment in a foreign currency, it exposes firms to exchange rate fluctuations. Consequently, firms must consider the impact of currency risk while deciding on the use of foreign debt as part of their preferred funding policy. Which factor is not considered here and which values are overlooked by the finance manager while listing?

Q.

Why is minimum wage a price floor?

Q.

___ market is the market for short-term fund, i.e. funds for a period of up to one year only.

1. Primary

2. Money

3. Secondary

4. None of the above

Q. To be listed on OTCEI, the minimum capital requirement for a company is ________.

1. Rs. $3$ crores
2. Rs. $5$ crores
3. Rs. $10$ crores
4. Rs. $25$ crores

Q. Name any two Instruments of money market.

Q. ?Name the market segment other than the capital market segment in which unsecured and short term debt instruments are traded.

Q. Distinguish between 'Capital Market' and 'Money Market' on the basis of:
(i) Liquidity
(ii) Investment outlays
(iii) Participants
(iv) Safety
(v) Instruments.

Q. Instruments of money market are in nature.

1. very short term
2. short term
3. medium term
4. long term

Q.

What is an example of a price floor?

Q.

Is rent control a price floor?