Important Banking Awareness Quizzes (Topic Wise) for SBI Clerk / IBPS Exams 2017

Important Banking Awareness Quizzes (Topic Wise) for SBI Clerk / IBPS Exams 2017:

Dear Readers, Here we have provided the Important Banking Awareness Quizzes based on particular topic, which will help to understand and prepare in a better way. Candidates those who are preparing for upcoming SBI Clerk / IBPS Exams 2017 can make use of it. Kindly share this to all your friends and recommend them to follow our site regularly.

Money Market Instruments (Part-1)

 

00:00:00

1. Money market instruments has maturity period ________.

Less than 6 months
Less than a year
Maximum two years
Less than 5 year
No limit
1).Money Market refers to the market for short-term requirement and deployment of funds, which have a maturity period of less than one year.
Answer: B

2. In Inter bank market operations where funds are borrowed and lent for 1 day or less is known as ________.

Repo rate
Reverse repo
Call money
Notice money
Term Money
2).
Answer: C

3. Where money is borrowed or lend for a period exceeding 14 days is known as________.

Repo rate
Reverse repo
Call Money
Notice Money
None of these.
3). Where money is borrowed or lend for a period exceeding 14 days is known as Term Money. If the period is between 2-14 days means it will be called as Notice Money.
Answer: E


4. Capital Market is used for ________ purpose.

Short term
Long term
Stock exchange
Security
None of these
4). Capital Market is used for long term purpose whereas Money market used for short term purpose.
Answer: B


5. Who issues Treasury bills (T-bills) in India?

RBI
Government of India
State government
Both b and c
All a, b, c
5). Treasury bills are issued by the Government of India. Reserve Bank of India manages and services these securities through its public debt offices.
Answer: B


6. The maximum time period of T-Bills is ________.

91 days
182 days
365 days
364 days
728 days
6). At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day.
Answer: D


7. The minimum amount for which T-Bills issued in India is ________.

5,000
10,000
25,000
50,000
1000
7). The minimum amount is 25,000. Otherwise it should be multiple of 25,000.
Answer: C


8. What is the maximum amount for which T-bills are issued in India?

1,00000
3,00000
5,00000
10,0000
None of these
8). T-Bills doesn’t have any upper ceiling.
Answer: E

9. The Reserve bank of India conducts 91 day T-Bill auction ________.

Every day
Every Monday
Every month second Friday
Every month third Friday
Every Wednesday
9). The 91-day T-bills are auctioned every week on Wednesdays, 182-day and 364-day T-bills are auctioned every alternate week on Wednesdays.
Answer: E

10. What does first S stands for in MSS?

Solution
Security
Stabilization
Securitization
Scheme
10). Market Stabilization Scheme is issued to extract excess liquidity in the system rather than providing the government with funds.
Answer: C

11. Identify the false statement.

State government cannot issue T-Bills.
Treasury Bills are eligible securities for SLR purposes.
They are auctioned by Reserve Bank of India at regular intervals and issued at a discount to face value.
T-bills are Zero risk instruments.
All are true.
11).
Answer: E

12. Cash Management Bills in India are non-standard, discounted instruments issued for maturities less than ________ days.

60
75
91
120
100
12). Cash Management Bills, to meet the temporary cash flow mismatches of the Government.
Answer: C

13. T-bills auctions are held on ________ platform.

Networked Dealing system
Negotiated Dealing system
RBI
E- commerce
BSE
13). T-bills auctions are held on the Negotiated Dealing System (NDS) and the members electronically submit their bids on the system.
Answer: B

14. All of the following are money market instruments except________.

Certificate of deposit
Commercial paper
Indian Depository Receipt
Commercial bill
All a, b, c, d
14). Indian Depository Receipt is a capital market instrument.
Answer: C

15. Identify the Identify the correct statement.

T-Bills are issued at face value and redeemed at discount at maturity.
T-Bills are issued at face value and redeemed at negotiated value at maturity.
T-bills are issued at a discount and redeemed at the face value at maturity.
Any person in India including Individuals, Firms, Companies, Corporate bodies, Trusts and Institutions can purchase Treasury Bills.
Both c and d
15).
Answer: E

 

This post was last modified on December 28, 2019 8:24 am