Which of the following is not a „Money Market Instrument‟? A. Treasury Bills B. Commercial Paper C. Certificate of Deposit D. Equity Shares

1 Answer

Answer :

D. Equity Shares Explanation: There are several money market instruments, including treasury bills, commercial paper, bankers‘ acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage-, and asset-backed securities.

Related questions

Description : Which of the following is subject to payment of Stamp Duty under Indian Stamp Act, 1899 (Central Act)? A. Commercial Paper B. Treasury Bills C. Certificate of Deposit D. Both (A) and (C) E. None of the Above

Last Answer : C. Certificate of Deposit Explanation: CD is subject to payment of Stamp Duty under Indian Stamp Act, 1899 (Central Act).

Description : When a corporate entity wishes to raise money from the market it can do that by issuing A. Treasury Bills B. Kisan Vikas Patra C. National Savings Certificate D. Commercial Papers E. None of the Above

Last Answer : D. Commercial Papers Explanation: Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.

Description : Which of the following is the most active segment of the money market in India? A. Commercial Paper(CP) B. Certificate of Deposit(CD) C. Call Money D. All of the above E. None of the Above

Last Answer : C. Call Money Explanation: Call money is short-term finance repayable on demand, with a maturity period of one to fourteen days or overnight to fortnight.

Description : Which of the following cannot be called as a debt instrument as referred in financial transactions? A. Certificate of Deposits B. Bonds C. Stock D. Commercial Paper

Last Answer : C. Stock Explanation: Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages.

Description : A trad-able form of loan is normally termed as ________ A. Certificate of Deposit (CD) B. Inter Bank term Money C. Bill Re-discounting D. Debt Instrument E. None of the Above

Last Answer : D. Debt Instrument Explanation: A trad-able form of loan is normally termed as a Debt Instrument. They are usually obligations of issuer of such instrument as regards certain future cash flow representing Interest & Principal, which the issuer would pay to the legal owner of the Instrument.

Description : Which of the following is the negotiable instrument? A. Fixed Deposit of a Bank B. Share certificate issued by a PSU C. Demand Draft issued by a bank D. Debenture of a company E. Airway Receipt

Last Answer : C. Demand Draft issued by a bank Explanation: A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee).

Description : Treasury bills are issued in India by ______ A. RBI B. State Government C. Government of India D. SEBI

Last Answer : C. Government of India Explanation: Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the ... , 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.

Description : For dividend yield ratio -------------- price of the equity shares is taken into consideration a) Market b) Cash c) Cost d) None of the above

Last Answer : a) Market

Description : In PO when duties of Pas are combined, the combination permissible is a) Money order & Treasury b) Sub account & mail c) Delivery and Deposit d) Delivery and mail

Last Answer : a) And brought in to a separate head at the PO

Description : What is the currency deposit ratio (cdr)? a) ratio of money held by the public in currency to that of money held in bank deposits b) ratio of money held by public in bank deposits to that of money ... ratio of money held in demand drafts to that of money held in treasury bonds d) none of the above

Last Answer : a) ratio of money held by the public in currency to that of money held in bank deposits

Description : A part of debt instruments that are converted into Equity shares in the future at notice of the issuer is called _________ A. Secured Debentures B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. Unsecured Debentures

Last Answer : B. Partly Convertible Debentures (PCD) Explanation: A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.

Description : Which of the following instruments retain the debt character and can not be converted in to equity shares? A. Non Convertible Debentures (NCD) B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. None of the Above

Last Answer : A. Non Convertible Debentures (NCD) Explanation: Non Convertible Debentures instruments retain the debt character and can not be converted in to equity shares.

Description : Public Debt Management Agency (PDMA) is being to set up to prevent leakages and development of the ___________ A. Treasury Market B. Bond Market C. Money Market D. Capital Market E. Call Money Market

Last Answer : B. Bond Market Explanation: The government‘s intention to set up a Public Debt Management Agency (PDMA) is not only required for the development of the bond market in the country, but it would also prevent leakages of public funds.

Description : What certificate of deposit rates should I expect in today's market?

Last Answer : The rates will vary depending on the amount of cash put in the cd and how long you will keep it there. A three month cd can have a rate of .89% and a jumbo five year could have around a 3% rate.

Description : The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are A. Large company stocks; U.S. treasury bills B. Large ... Treasury bills D. Small company stocks; preferred stock E. U.S. treasury bills; small company stocks

Last Answer : C. Small company stocks; U.S. Treasury bills

Description : Q6 All cheques , Bills etc preferable at a treasury for payment being nonnegotiable instruments can be endorsed only once . The above said statement is a. True b. False

Last Answer : a. True

Description : Repo transactions are allowed in (a) Government securities / Treasury bills of all maturity ; (b) State Government securities (c) PSU bonds/Private corporate bonds ; (d) All the three

Last Answer :  (d) All the three 

Description : A company forfeited 30 equity shares of Rs. 10 each fully called-up, for non-payment of allotment money of Rs. 3 and call-money of Rs. 4 per share. If these shares are reissued at Rs. 8 per share fully paid, the amount ... to capital reserve will be- (A) Rs. 300 (B) Rs. 60 (C) Rs. 90 (D) Rs. 30

Last Answer : Answer: Rs. 30

Description : Which of the following is a computer based application and a secured way of paying Non-Judicial stamp duty to the Government? A. Commercial Papers B. E-stamp C. Treasury bill D. All of the Above E. None of the Above

Last Answer : B. E-stamp Explanation: e-Stamping is a computer based application and a secured way of paying Non-Judicial stamp duty to the Government.

Description : Which of the following is not available to depositors of NBFCs? A. Deposit Insurance facility B. Acquisition of shares C. Loans and Advances D. All of the Above E. None of the Above

Last Answer : A. Deposit Insurance facility Explanation: Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

Description : ________ are financial markets for the buying and selling of long-term debt or equity-backed securities. A. Bullion Market B. Capital Market C. Money Market D. All of the Above E. None of the Above

Last Answer : B. Capital Market Explanation: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc

Description : Do I need a certificate of deposit to deposit money into my account?

Last Answer : You do not need a certificate of deposit (also known as a CD) to deposit money into an account - unless you are attempting to deposit money into a CD account. Most banks only require you to ... speaking, however, you should not have to open a CD to deposit funds into a regular checking account.

Description : What happens if I need the money from my certificate of deposit before my term is over?

Last Answer : If you need to withdraw the money from a certificate of deposit before the term is over, you usually have to pay a penalty. The penalty varies from bank to bank and depends on the term of your certificate.

Description : Open market operations of RBI refer to buying and selling of - (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : (4) Government bonds Explanation: OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to ... are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

Description : _____has constantly endeavoured to develop the commercial bills market. a. Commercial bank b. RBI c. SBI

Last Answer : b. RBI

Description : Open market operations of RBI refer to buying and selling of (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : Government bonds

Description : Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, ... ) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000

Last Answer : Answer: Rs. 30,000

Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Last Answer : Answer: Equity Shareholders

Description : A situation where two companies hold shares in each other is called ? 1. equity holding 2. swapping 3. reciprocal holding 4. cross holding 5. None of these

Last Answer : cross holding

Description : Fixed assets, inventories and investments in Equity shares are examples of ____________ items.

Last Answer : Non-monetary,

Description : Intrinsic value of each equity shares of the vendor company is Rs. 250 and that of the purchasing company is Rs. 400. The exchange ratio of shares on the basis of intrinsic value is - (A) 2:1 (B) 8:8 (C) 8:5 (D) None of the above

Last Answer : (C) 8:5

Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000

Last Answer : (A) Rs. 48,000

Description : Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20

Last Answer : Rs.10.70

Description : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Last Answer : a) The WACC may decrease as a firm's debt-equity ratio increases.

Description : Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares

Last Answer : B. Equity shares

Description : For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. A. 51% B. 90% C. 99% D. 100%

Last Answer : B. 90%

Description : Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to ... paid in equity shares by the transferee company except for fraction shares. D. All of the above

Last Answer : D. All of the above

Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Last Answer : A. Net profit before interest, tax and dividend / Capital employed

Description : The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares

Last Answer : B. Preference Shares

Description : 20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- a) Rs.2,00,000 b) Rs.2,10,000 c) Rs.2,15,000 d) Rs.2,20,000

Last Answer : d) Rs.2,20,000

Description : Investment in which of the following is most risky? A. Equity shares. B. Preference shares. C. Debentures. D. Land.

Last Answer : C. Debentures.

Description : Which of the following securities proves a burden on finances of the company, when company is not earning profits? A. Equity shares. B. Preference shares. C. Redeemable preference shares. D. Debentures.

Last Answer : D. Debentures.

Description : Which of the following sources is not use for medium term financing? A. Issue of equity shares. B. Issue of debentures. C. Term loans from banks. D. Sale of current asset.

Last Answer : A. Issue of equity shares.

Description : Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

Last Answer : (3) Purchase and sale of Government securities by RBI Explanation: Open Market Operation (OMO) refers to the buying and selling of government securities in the open market in order to expand or ... in the banking system. A central bank uses OMO as the primary means of implementing monetary policy.

Description : Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Last Answer : Purchase and sale of Government securities by RBI

Description : What are the current US treasury rates of money market accounts?

Last Answer : The current US treasury rates on money market accounts is 12 percent. However, this rate fluctuates daily and changes on a daily, sometimes hourly, basis.

Description : 9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Last Answer : c. buy Treasury securities in the open market

Description : i. Saving Deposit, Recurring Deposit, Cash Credit. Fixed Deposit ii. Overdraft, Fixed Deposit, Discounting of Bills, Cash Credit

Last Answer : Find the odd one: i. Saving Deposit, Recurring Deposit, Cash Credit. Fixed Deposit ii. Overdraft, Fixed Deposit, Discounting of Bills, Cash Credit

Description : My checking account was garnished on Friay. I receive my salary through direct deposit at my bank, and they took all of it! Isn't this illegal I need help. The garnishment is for bills while in the hospital for a week and subsequent anti biotic treatment?

Last Answer : No that had to go to court to be able to do that. You will have to prove how much you need to live on and they will take the rest. Unfortunately, this is very legal. You should have received a legal notice informing you of the garnishment.

Description : If the US Treasury were to mint a $1T coin, how would that be different from printing the same amount of paper currency?

Last Answer : As I read the article, the law says it must be a platinum COIN, not something on paper. I guess that the assumption is that coin is solid and permanent, while pieces of paper are ephemral.