Here are some MCQs on Regulation of Money Market in India
1. What is the primary purpose of regulating the money market in India?
a) To ensure stability in the financial system
b) To control inflation
c) To encourage savings and investment
d) All of the above
2. The regulatory authority for the money market in India is:
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Ministry of Finance
d) Government of India
3. The primary instrument used by the RBI for regulating the money market is:
a) Open market operations (OMOs)
b) Repo rate
c) Reverse repo rate
d) Cash reserve ratio (CRR)
4. Which of the following is not a money market instrument in India?
a) Treasury bills
b) Certificate of deposit
c) Commercial paper
d) Stocks and shares
5. The minimum maturity period for a certificate of deposit issued by banks in India is:
a) 7 days
b) 14 days
c) 30 days
d) 180 days
