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प्रश्न
Justify the following statement.
Financial markets acts as link between investor and borrower.
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उत्तर
- The financial market provides a platform where both, buyers and sellers can find each other easily.
- Investors who have savings are linked with entrepreneurial borrowers that require investment.
- As a result, the idle funds in the hands of investors can be productively used by corporates.
- This market enables investors to invest their saving according to their choices and risk assessment.
- Hence, financial markets acts as link between investor and borrower.
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संबंधित प्रश्न
Central government is a borrower in the money market through the issue of ______.
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 long term funds
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 the following statement.
A money market instrument used by banks when one bank faces a temporary shortage of cash.
State whether the following statement is true or false
Treasury bills are issued by commercial banks.
Complete the sentence.
Unsecured negotiable promissory notes issued by a commercial bank is called as _______.
Complete the sentence.
In capital market the instruments traded have maturity period of more than ______ year.
Answer in one sentence.
What is call money market?
Answer in one sentence.
What is Certificate of Deposits?
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.
Call money market
Explain the following term/concept.
Commercial bills
Answer in brief.
Explain any 4 types of money market instruments.
Justify the following statement.
Money market makes available short term finance through different instruments.
Answer the following question
State the instruments in money market.
Study the following case/situation and express your opinion.
| Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares. |
- Should it go to the primary market or secondary market to issue its shares?
- Should it offer its shares through public offers or rights issues?
- What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?
