Important Banking Awareness Quizzes (Topic Wise) for SBI Clerk / IBPS Exams 2017:
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Money Market Instruments (Part-1)
1. Money market instruments has maturity period ________.
Less than 6 months
Less than a year
Maximum two years
Less than 5 year
1).Money Market refers to the market for short-term requirement and deployment of funds, which have a maturity period of less than one year. Answer: B
2. In Inter bank market operations where funds are borrowed and lent for 1 day or less is known as ________.
2). Answer: C
3. Where money is borrowed or lend for a period exceeding 14 days is known as________.
None of these.
3). Where money is borrowed or lend for a period exceeding 14 days is known as Term Money. If the period is between 2-14 days means it will be called as Notice Money. Answer: E
4. Capital Market is used for ________ purpose.
None of these
4). Capital Market is used for long term purpose whereas Money market used for short term purpose. Answer: B
5. Who issues Treasury bills (T-bills) in India?
Government of India
Both b and c
All a, b, c
5). Treasury bills are issued by the Government of India. Reserve Bank of India manages and services these securities through its public debt offices. Answer: B
6. The maximum time period of T-Bills is ________.
6). At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. Answer: D
7. The minimum amount for which T-Bills issued in India is ________.
7). The minimum amount is 25,000. Otherwise it should be multiple of 25,000. Answer: C
8. What is the maximum amount for which T-bills are issued in India?
None of these
8). T-Bills doesn’t have any upper ceiling. Answer: E
9. The Reserve bank of India conducts 91 day T-Bill auction ________.
Every month second Friday
Every month third Friday
9). The 91-day T-bills are auctioned every week on Wednesdays, 182-day and 364-day T-bills are auctioned every alternate week on Wednesdays. Answer: E
10. What does first S stands for in MSS?
10). Market Stabilization Scheme is issued to extract excess liquidity in the system rather than providing the government with funds. Answer: C
11. Identify the false statement.
State government cannot issue T-Bills.
Treasury Bills are eligible securities for SLR purposes.
They are auctioned by Reserve Bank of India at regular intervals and issued at a discount to face value.
T-bills are Zero risk instruments.
All are true.
11). Answer: E
12. Cash Management Bills in India are non-standard, discounted instruments issued for maturities less than ________ days.
12). Cash Management Bills, to meet the temporary cash flow mismatches of the Government. Answer: C
13. T-bills auctions are held on ________ platform.
Networked Dealing system
Negotiated Dealing system
13). T-bills auctions are held on the Negotiated Dealing System (NDS) and the members electronically submit their bids on the system. Answer: B
14. All of the following are money market instruments except________.
Certificate of deposit
Indian Depository Receipt
All a, b, c, d
14). Indian Depository Receipt is a capital market instrument. Answer: C
15. Identify the Identify the correct statement.
T-Bills are issued at face value and redeemed at discount at maturity.
T-Bills are issued at face value and redeemed at negotiated value at maturity.
T-bills are issued at a discount and redeemed at the face value at maturity.
Any person in India including Individuals, Firms, Companies, Corporate bodies, Trusts and Institutions can purchase Treasury Bills.