Business Studies MCQ Quiz Hub

1. Which of the following statements is not true with regard to money market?
 It involves low market risk.
It is situated at specific locations.
Deals in unsecured and short-term debt instruments.
The instruments traded are highly liquid.

2. Which of the following statements is not true with regard to Treasury bills?
Are issued in the form of a promissory note.
They are highly liquid and have assured yield
They carry high risk of default.
They are available for a minimum amount of ₹25,000 and in multiples thereof.

3. Which of the following statements is not true with regard to Commercial paper?
Is a long-term unsecured promissory note with a fixed maturity period.
It usually has a maturity period of 15 days to one year.
It is sold at a discount and redeemed at par.
Companies use this instrument for bridge financing.

4. Which of the following statements is not true with regard to Call money?
It is short-term finance repayable on demand.
Its maturity period ranges from one day to fifteen days.
There is a direct relationship between call rates and other short-term money market instruments.
It is used for inter-bank transactions.

5. Which of the following statements is not true with regard to primary market?
Is also known as the old issues market.
It facilitates the transfer of investible funds from savers to entrepreneurs.
It deals with new securities being issued for the first time.
It facilitates the transfer of investible funds from savers to entrepreneurs.