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Money Market Model Question Paper

12th Standard

    Reg.No. :
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Commerce

Time : 02:00:00 Hrs
Total Marks : 60
    8 x 1 = 8
  1. The money invested in the call money market provides high liquidity with _______

    (a)

    Low Profitability

    (b)

    High Profitability

    (c)

    Limited Profitability

    (d)

    Medium Profitability

  2. Risk in the Money Market is _______

    (a)

    High

    (b)

    Market Risk

    (c)

    Low Credit and Market Risk

    (d)

    Medium Risk

  3. The market for buying and selling of Commercial Bills of Exchange is known as a _____

    (a)

    Commercial Paper Market

    (b)

    Treasury Bill Market

    (c)

    Commercial Bill Market

    (d)

    Capital Market

  4. Treasury Bills commands ________

    (a)

    High Liquidity

    (b)

    Low Liquidity

    (c)

    Medium Liquidity

    (d)

    Limited Liquidity

  5. Government Securities are issued by agencies such as _________

    (a)

    Central Government

    (b)

    State Governments

    (c)

    Semi-government Authorities

    (d)

    All of the above

  6. Which market deals with shares and debentures?

    (a)

    Money market

    (b)

    Capital market

    (c)

    Debt market

    (d)

    Primary market

  7. Certificate of Deposits are issued in the form of usance

    (a)

    Bill of exchange

    (b)

    Promissory notes

    (c)

    Commercial bills

    (d)

    None of these

  8. Bills that are accompanied by documents of title to goods are called

    (a)

    Foreign bills

    (b)

    Indigeneous bills

    (c)

    Documentary bills

    (d)

    Demand bill

  9. 2 x 2 = 4
  10. Assertion (A): Money market is a market for purely shot-term funds.
    Reason (R): It deals with the financial assets and securities whose maturity period does not exceed one year.
    Codes:
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false.
    (d) (A) is false, but (R) is true.

  11. Assertion (A): The certificate of Deposit is transferable from one party to another.
    Reason (R): Due to their negotiable feature, they are also known as negotiable certificate of deposit.
    Codes:
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false.
    (d) (A) is false, but (R) is true.

  12. 2 x 1 = 2
  13. (i) Money market deals with financial assets having a maturity period upto one year only.
    (ii) Money market is a single homogeneous market.
    (iii) Commercial banks generally play a dominant role in this market.
    (a) (i) is correct
    (b) (ii) is correct
    (c) (i) and (ii) are correct
    (d) (i) and (iii) are correct

  14. (i) Certificate of Deposits are short-term deposit instruments issued by banks and financial institutions to raise large sums of money.
    (ii) Certificate of deposits is a document of title to a time deposit.
    (iii) Certificate of deposits issued at discount to face value.
    (a) (i) is correct
    (b) (i) and (iii) are correct
    (c) (ii) is correct
    (d) (i), (ii) and (iii) are correct

  15. 8 x 2 = 16
  16. Define the term "Money Market".

  17. What is a CD market?

  18. What are the Instruments of Money Market?

  19. Explain the two oldest money markets.

  20. What do you meant by Switching?

  21. What is cut-off rate?

  22. Who are the issuers of certificate of deposits?

  23. What is Commercial bills?

  24. 5 x 3 = 15
  25. What are the features of Treasury Bills?(any 3)

  26. Explain the types of Treasury Bills? (any 3)

  27. What are the types of Commercial Bill? (any 3)

  28. What are the objectives of money market?

  29. What do you mean by Inland bills and foreign bills?

  30. 3 x 5 = 15
  31. Differenciate between the Money Market and Capital Market.(any 5)

  32. Explain the characteristics of Money Market? (any 5)

  33. What are the characteristics of Government Securities? (any 5)

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