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12th Standard Commerce English Medium - Money Market 2 Mark Book Back Question Paper and Answer Key 2022 - 2023

Published on: 02/09/2022

QB365 provides a detailed and simple solution for every Possible Book Back Questions in Class 12 Commerce Subject - Money Market, English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

Download Tamil Nadu 12th Standard Commerce question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Questions:

Generic 2

5 x 2 = 10

What do you meant by Switching?

What do you meant by Auctioning?

What is Government Securities Market?

What is a CD market?

Define the term "Money Market".

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Answers Key:

Generic 2

5 x 2 = 10

The purchase of one security against the sale of another security carried out by the RBI in the secondary market as part of its open market operations is described as switching.

A method of trading whereby merchants bid against one another and where the securities are sold to the highest bidder is known as auctioning.

A market whereby the government or gilt edged securities can be bought and sold is called 'Government securities market'.

(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 are issued in the form of usance promissory notes.
(iii) The Certificate of Deposit is transferable from one party to another.
(iv) Due to their negotiable feature, they are also known as negotiable certificate of deposit.

According to Crowther "the money market is the collective name given to the various firms and institutions that deal in the various grades of near money".