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Question
Money market is the market for the long term funds.
Options
True
False
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Solution
This statement is False.
Explanation:
The money market deals with short-term funds and financial instruments with maturities of less than one year, not long-term funding.
RELATED QUESTIONS
Central government is a borrower in the money market through the issue of ______.
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 for the following statement.
A bill which is issued by Reserve Bank of India on behalf of the Government of India.
Write a word or a term or a phrase that can substitute the following statement.
A market that exclusively deals with the new issue of securities
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
Secondary market is commonly known as stock market.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
Complete the sentence.
In capital market the instruments traded have maturity period of more than ______ year.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Money market | 1) ____________ |
| b) Zero risk instrument | 2) _____________ |
| c) __________ | 3) Capital market |
| d) __________ | 4) Secondary market |
(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Answer in one sentence.
What is Certificate of Deposits?
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.
Repurchase agreement
Explain the following term/concept.
Treasury bills
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?
