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प्रश्न
Explain the following term/concept.
Repurchase agreement
उत्तर
It is an agreement where the seller of security (i.e. one who needs money) agrees to buy it back from the lender at a higher price on a future date. Usually, this agreement is between RBI and commercial banks. RBI uses this agreement to control the money supply in the economy. These agreements are the most liquid of all money market investments having maturity ranging from 24 hours to several months.
APPEARS IN
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 bill which is issued by Reserve Bank of India on behalf of the Government of India.
State whether the following statement is true or false
Secondary market is commonly known as stock market.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
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 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.
Call money market
Explain the following term/concept.
Commercial bills
Answer in brief.
State any four features of money market
Answer in brief.
Explain any 4 types of money market instruments.
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?
