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प्रश्न
Explain the following term/concept.
Repurchase agreement
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उत्तर
It is an agreement where the seller of security (i.e. one who needs money) agrees to buy it back from the lender at a higher price on a future date. Usually, this agreement is between RBI and commercial banks. RBI uses this agreement to control the money supply in the economy. These agreements are the most liquid of all money market investments having maturity ranging from 24 hours to several months.
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संबंधित प्रश्न
Match the pair.
| Group ‘A’ | Group ‘B’ |
| a) Financial market | 1) Long term fund |
| b) Money market | 2) New issue market |
| c) Primary market | 3) Trading of commodities |
| d) Commercial paper | 4) Short term fund |
| 5) Trading of financial securities | |
| 6) Share market | |
| 7) Unsecured promissory note | |
| 8) Secured promissory note |
Write a word or a term or a phrase which can substitute the following statement.
A market which provides short term funds
Write a word, or a term, or a phrase which can substitute for the following statement.
A bill which is issued by Reserve Bank of India on behalf of the Government of India.
State whether the following statement is true or false
Capital market is the market for the long term funds.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
State whether the following statement is true or false
Treasury bills are issued by commercial banks.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
Complete the sentence.
When trade bills are accepted by commercial banks, it is known as _________.
Answer in one sentence.
What is Trade Bill?
Correct the underlined word/s and rewrite the following sentence.
In Money market, the instruments traded have maturity period of more than one year.
Explain the following term/concept.
Money market
Explain the following term/concept.
Call money market
Explain the following term/concept.
Treasury bills
Answer in brief.
Explain any 4 types of money market instruments.
Justify the following statement.
Financial markets acts as link between investor and borrower.
