Question : Which of the following statement is correct? Statement 1: The demerit of money market is it provides less liquidity in the transaction of securities. Statement 2: There is no need of brokers for the transaction done in the money market.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Statement 1 is false and statement 2 is true.
Solution : Generally there is no need of brokers for transaction done in the money market therefore buying and selling in the money market involves less expenses. One important feature of the money market is more liquidity in the transaction of securities. In this market there is a formal arrangement of creating liquidity.
Hence, option D is correct.
Question : Which of the following statement is correct? Statement 1: Capital market refers to that market where transaction in long term securities are made. Statement 2: Money market refers to that market where transaction in short term securities are made.
Question : Which of the following statement is correct? Statement 1:Instruments of the money market are close substitutes for money. Statement 2: Discount Finance House of India provides a ready market for money market instruments.
Question : Which of the following statement is correct? Statement 1: It is the feature of secondary market to create liquidity in securities. Statement 2: liquidity means immediate conversion of securities into credit.
Question : Which of the following statement is correct? Statement 1: Money market deals in those financial asset which have the maximum maturity to period of 1 year. Statement 2: The transaction run in the money market are done slowly.
Question : Statement 1: Secondary market involves the trading of existing securities.
Statement 2: Secondary market involves the issuance of new securities to the public.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
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