Indian Money Market – Structure and Features

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46. What is the current repo rate in India?

a) 2%

b) 3%

c) 4%

d) 5%

Answer: c) 4%
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47. Which of the following is not a participant in the commercial paper market?

a) Commercial banks

b) Corporates

c) Mutual funds

d) Stockbrokers

Answer: d) Stockbrokers
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48. What is the primary objective of investing in money market instruments?

a) Capital appreciation

b) Long-term growth

c) Preservation of capital

d) Speculation

Answer: c) Preservation of capital
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49. Which organization supervises the functioning of insurance companies in the Indian money market?

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)

Answer: d) Insurance Regulatory and Development Authority of India (IRDAI)
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50. What is the maximum maturity period for investing in overnight funds in India?

a) 7 days

b) 14 days

c) 30 days

d) On a daily basis

Answer: d) On a daily basis
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