Here are some MCQs on Instruments of Money Market
1. Which of the following instruments is generally used by governments to finance their short-term borrowing needs?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
2. What is the typical maturity period for a Treasury bill?
a) 30 days
b) 60 days
c) 90 days
d) 180 days
3. Which of the following instruments is issued by corporations to raise short-term funds?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
4. What is the typical maturity period for commercial paper?
a) 30 days
b) 60 days
c) 90 days
d) 180 days
5. Which of the following instruments is issued by banks to raise short-term funds?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
