Class 12 Finance MCQ Chapter 6 Money Market Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 6 Money Market Question Answer and select need one. Class 12 Finance MCQ Chapter 6 Money Market Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ Chapter 6 Money Market
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.
Money Market
Chapter: 6
| MCQ |
1. What is the primary function of financial markets?
(i) To deal with goods and services.
(ii) To provide long-term investments.
(iii) To allocate credit and create liquidity.
(iv) To offer physical commodities.
Ans: (iii) To allocate credit and create liquidity.
2. Which market deals with short-term borrowing and lending of funds?
(i) Capital market.
(ii) Commodity market.
(iii) Money market.
(iv) Stock market.
Ans: (iii) Money market.
3. What is the main characteristic of money market instruments?
(i) They are long-term investments.
(ii) They are highly illiquid.
(iii) They are short-term and liquid.
(iv) They require significant capital.
Ans: (iii) They are short-term and liquid.
4. What is a key feature of money markets?
(i) Money markets deal with long-term financial instruments.
(ii) Money markets provide funds for periods greater than one year.
(iii) Money markets deal with near-money assets and short-term funds.
(iv) Money markets involve government funding exclusively.
Ans: (iii) Money markets deal with near-money assets and short-term funds.
5. Which of the following is a constituent of the money market?
(i) Commercial banks.
(ii) Real estate firms.
(iii) Insurance companies.
(iv) All of the above.
Ans: (i) Commercial banks.
6. In the money market, who are the main borrowers?
(i) Individual investors.
(ii) Government and private corporations.
(iii) Commercial banks.
(iv) Speculators and traders.
Ans: (ii) Government and private corporations.
7. What type of securities are commonly traded in the money market?
(i) Bonds.
(ii) Treasury bills and commercial papers.
(iii) Shares and stocks.
(iv) Real estate securities.
Ans: (ii) Treasury bills and commercial papers.
8. Which market is considered the place for very short-term borrowing and lending?
(i) Commodity market.
(ii) Money market.
(iii) Capital market.
(iv) Equity market.
Ans: (ii) Money market.
9. Which of the following is a sub-market of the money market?
(i) Derivatives market.
(ii) Call money market.
(iii) Stock market.
(iv) Real estate market.
Ans: (ii) Call money market.
10. What is a “Call loan”?
(i) A loan secured against property.
(ii) A short-term loan payable on demand.
(iii) A loan for long-term investment.
(iv) A government loan for infrastructure.
Ans: (ii) A short-term loan payable on demand.
11. In which market do banks accept and discount trade bills?
(i) Bill market.
(ii) Capital market.
(iii) Foreign exchange market.
(iv) Commodities market.
Ans: (i) Bill market.
12. Which of these institutions plays a major role in the money market?
(i) Stock exchanges.
(ii) Commercial banks.
(iii) Retail investors.
(iv) Foreign exchange dealers.
Ans: (ii) Commercial banks.
13. The main purpose of the collateral loan market is to:
(i) Provide loans with no security.
(ii) Offer loans secured by stocks and bonds.
(iii) Facilitate loans for real estate.
(iv) Assist in long-term investments.
Ans: (ii) Offer loans secured by stocks and bonds.
14. Which of the following is NOT a feature of the money market?
(i) It deals with long-term credit instruments.
(ii) It provides liquidity to the lenders.
(iii) It caters to short-term borrowing and lending.
(iv) It operates without a fixed location.
Ans: (i) It deals with long-term credit instruments.
15. Who are the primary lenders in the money market?
(i) Central banks and commercial banks.
(ii) Stock exchanges.
(iii) Retail investors and households.
(iv) Government agencies.
Ans: (i) Central banks and commercial banks.
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