Here are some MCQs on Indian Money Market – Structure and Features
1. Which of the following is not a component of the Indian money market?
a) Commercial banks
b) Non-banking financial companies (NBFCs)
c) Stock exchanges
d) Mutual funds
2. The money market in India is regulated by which organization?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) National Stock Exchange (NSE)
d) Insurance Regulatory and Development Authority of India (IRDAI)
3. Which instrument is primarily used for short-term borrowing and lending in the Indian money market?
a) Treasury bills
b) Commercial paper
c) Certificate of deposit
d) Government bonds
4. Which of the following is not a feature of the Indian money market?
a) High liquidity
b) Low transaction costs
c) Centralized trading
d) Long-term borrowing and lending
5. What is the minimum maturity period of treasury bills in India?
a) 7 days
b) 14 days
c) 91 days
d) 364 days
