Question : Which of the following statement is incorrect?
Option 1: Money market instruments are highly liquid
Option 2: Money market instruments are less risky
Option 3: Money market instruments are cheaper
Option 4: None of the above
Correct Answer: Money market instruments are cheaper
Solution : Instruments of money market are quite expensive. Major participants of money market are reserve Bank of India,commercial banks, state governments,etc.
Hence, option C is correct.
Question : Which of the following statement is incorrect for money market instruments?
Option 2: Instruments of money market are quite expensive
Option 3: Money market instruments are highly risky
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.
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.
Option 1: Money market require huge financial investment
Option 2: The expected return of money market is less due to short duration
Option 3: Money market deals in medium and long term securities
Question : It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. Which of the following market has been highlighted in the given statement?
Option 1: Money market
Option 2: Capital market
Option 3: Primary market
Option 4: Secondary market
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile