Money Market Questions for RBI Grade B (Finance)

Dear aspirants,
We are presenting you the money market questions for RBI Grade B Finance Section of the exam. These questions will cover the topics such as Money Market, Call Money, Term Money, Coins etc which are very important from exam point of view. Also do read the answers provided at the end of quiz.

1. Which among the following is/are correct regarding Money Market?
   a) Money Market is a market for short-term funds
   b) Maturity in this market ranging from overnight to one year
   c) The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
   d) Maturity in this market is above one year
   Select the correct answer from following options:
   1. Only a and b
   2. a, b and c
   3. b, c and d
   4. All are correct
2. Which among the following is/are correct regarding Call Money?
   a) It is the money lent/borrowed for maximum period of 14 days
   b) No Collateral is required in Call Money transaction
   c) It is the money lent/borrowed for maximum period of 30 days
   d) Banks borrow primarily from the inter-bank (call money) market
   Select the correct answer from following options:
   1. a, b and d
   2. a, b and c
   3. b, c and d
   4. All are correct
3. What is the maximum duration for which term money can be lent/borrowed?
   1. 1 day
   2. 15 days
   3. 30 days
   4. 1 year
4. What is the minimum duration for which term money can be lent/borrowed?
   1. 1 day
   2. 15 days
   3. 30 days
   4. 1 year
5. How many Scheduled Commercial Banks are there in India?
   1. 81
   2. 89
   3. 93
   4. 97
6. Which among the following surveys is not conducted by Reserve Bank of India?
   1. Consumer Confidence Survey (CCS)
   2. Inflation Expectations Survey of Households (IESH)
   3. Survey of Professional Forecasters on Macroeconomic Indicators
   4. Annual Survey of Industries
7. Who is the issuing authority of coins in India?
   1. Reserve Bank of India
   2. Government of India
   3. Ministry of Finance
   4. Both 1 and 2
8. Which act governs the minting of coins in India?
   1. Indian Coinage Act, 1906
   2. Indian Rupee Act, 1996
   3. Indian Denomination Act, 1972
   4. All of these
9. How many government coin mints are there in India?
   1. 2
   2. 3
   3. 4
   4. 5
10. Coins upto what amount are called ‘small coins’ in India?
    1. 25 paise
    2. 50 paise
    3. 1 rupee
    4. 2 rupee

Answers

1. 2
   The money market is a key component of the financial system. It is a market for short-term funds with maturity ranging from overnight to one year. The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
2. 1
3. 4
   The term money market is another segment of the uncollateralised money market. The maturity period in this segment ranges from 15 days to one year.
4. 2
5. 3
   No of Scheduled Commercial Banks as on May 25, 2018 are 93
6. 4
   Annual Survey of Industries is conducted by CSO while other three survey viz. Consumer Confidence Survey (CCS), Inflation Expectations Survey of Households (IESH), Survey of Professional Forecasters on Macroeconomic Indicators are conducted by Reserve Bank of India
7. 2
   The Government of India has the sole right to mint coins. The Reserve Bank puts the coins into circulation on behalf of the Central Government
8. 1
9. 3
   Coins are minted at the five India Government Mints at Mumbai, Alipore(Kolkata), Saifabad(Hyderabad), Cherlapally (Hyderabad) and NOIDA (UP).
10. 2
    Coins upto 50 paise are called ‘small coins’

You may also like to read following MCQs for RBI Grade B exam: 

• Measures of Money Supply Quiz
• Price Index and Financial Instruments MCQ
• MCQ on RBI
• SIDBI Quiz

Click to go to RBI Grade B Preparation Page  | Click to read more such quizzes

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