Regulation of Money Market in India

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11. In India, the money market is regulated under the provisions of the:

a) Securities Contract (Regulation) Act, 1956

b) Reserve Bank of India Act, 1934

c) Companies Act, 2013

d) Indian Contract Act, 1872

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12. Which of the following is an example of a short-term money market instrument?

a) Corporate bonds

b) Equity shares

c) Government securities

d) Treasury bills

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13. The Reserve Bank of India issues treasury bills on behalf of:

a) State governments

b) Municipal corporations

c) Central government

d) Multi-national corporations

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14. The money market in India is mainly regulated to:

a) Control inflation

b) Ensure financial stability

c) Facilitate government borrowing

d) All of the above

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15. The repo rate is the rate at which:

a) Banks lend to the RBI

b) RBI lends to banks

c) Banks borrow from each other

d) RBI borrows from the government

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