Class 12 Finance MCQ Chapter 7 Indian 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 7 Indian Money Market Question Answer and select need one. Class 12 Finance MCQ Chapter 7 Indian Money Market Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ Chapter 7 Indian 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.
Indian Money Market
Chapter: 7
| MCQ |
1. Which of the following is the leader of the Indian Money Market?
(i) Commercial Banks.
(ii) Reserve Bank of India.
(iii) Development Banks.
(iv) Indigenous Bankers.
Ans: (ii) Reserve Bank of India.
2. What is the minimum paid-up capital required for scheduled banks in India?
(i) Rs. 1 lakh.
(ii) Rs. 5 lakhs.
(iii) Rs. 10 lakhs.
(iv) Rs. 50 lakhs.
Ans: (ii) Rs. 5 lakhs.
3. Which of the following is not classified as a commercial bank in India?
(i) State Bank of India.
(ii) HDFC Bank Ltd.
(iii) Assam Gramin Vikash Bank.
(iv) Indian Overseas Bank.
Ans: (iii) Assam Gramin Vikash Bank.
4. Scheduled banks are required to maintain reserves with which institution?
(i) Reserve Bank of India.
(ii) State Bank of India.
(iii) National Bank for Agriculture and Rural Development.
(iv) Industrial Finance Corporation of India.
Ans: (i) Reserve Bank of India.
5. Which of the following is an example of a Foreign Scheduled Bank?
(i) UCO Bank.
(ii) HSBC Ltd.
(iii) Axis Bank.
(iv) Bandhan Bank Ltd.
Ans: (ii) HSBC Ltd.
6. What is the primary function of the Discount and Finance House of India (DFHI)?
(i) To provide long-term loans.
(ii) To provide liquidity to money market instruments.
(iii) To guarantee loans.
(iv) To issue commercial bills.
Ans: (ii) To provide liquidity to money market instruments.
7. What does the unorganized sector of the Indian Money Market mainly consist of?
(i) Scheduled Banks.
(ii) Money Lenders and Indigenous Bankers.
(iii) Commercial Banks.
(iv) Regional Rural Banks.
Ans: (ii) Money Lenders and Indigenous Bankers.
8. Which of the following is a defect of the Indian Money Market?
(i) Well-organized bill market.
(ii) Healthy competition.
(iii) Seasonal fluctuations of funds.
(iv) Adequate banking facilities.
Ans: (iii) Seasonal fluctuations of funds.
9. What is the term used for short-term borrowings issued by the RBI on behalf of the Central Government?
(i) Treasury Bills.
(ii) Commercial Bills.
(iii) Certificates of Deposit.
(iv) Commercial Papers.
Ans: (i) Treasury Bills.
10. What is the maturity period of an ordinary Treasury Bill in India?
(i) Up to 1 month.
(ii) Up to 6 months.
(iii) Up to 1 year.
(iv) Up to 2 years.
Ans: (iii) Up to 1 year.
11. What type of bills are issued by sellers to buyers for credit transactions?
(i) Commercial Bills.
(ii) Treasury Bills.
(iii) Certificates of Deposit.
(iv) Call Money.
Ans: (i) Commercial Bills.
12. Which type of money market instrument is issued by corporates to meet working capital needs?
(i) Commercial Bills.
(ii) Commercial Papers.
(iii) Treasury Bills.
(iv) Call Money.
Ans: (ii) Commercial Papers.
13. What is a Certificate of Deposit in the Indian Money Market?
(i) A short-term loan provided by the government.
(ii) A time deposit instrument issued by banks.
(iii) A money market instrument issued by the RBI.
(iv) An unsecured promissory note.
Ans: (ii) A time deposit instrument issued by banks.
14. What is the maturity period range for call money/notice money in the Indian Money Market?
(i) 1 to 7 days.
(ii) 1 to 14 days.
(iii) 30 to 90 days.
(iv) 6 months to 1 year.
Ans: (ii) 1 to 14 days.
15. Which of the following is a lender in the unorganized sector of the Indian Money Market?
(i) SBI.
(ii) Money Lenders.
(iii) HDFC Bank.
(iv) IFCI.
Ans: (ii) Money Lenders.
Hi! my Name is Parimal Roy. I have completed my Bachelor’s degree in Philosophy (B.A.) from Silapathar General College. Currently, I am working as an HR Manager at Dev Library. It is a website that provides study materials for students from Class 3 to 12, including SCERT and NCERT notes. It also offers resources for BA, B.Com, B.Sc, and Computer Science, along with postgraduate notes. Besides study materials, the website has novels, eBooks, health and finance articles, biographies, quotes, and more.
Buy Now
