NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to the Indian Financial Markets
In the Indian financial system, which of the following best describes the primary role of the money market?
The money market provides short-term funds, dealing in instruments with maturity of up to one year such as treasury bills, commercial paper, certificates of deposit and call money. Long-term capital is raised in the capital market, not here.
- ARaising long-term equity capital for infrastructure projects
- BProviding short-term funds with maturity up to one yearCorrect
- CTrading derivative contracts on stock indices
- DIssuing units of collective investment schemes to retail investors
Explanation
The money market deals in instruments of maturity up to one year, such as treasury bills, commercial paper and certificates of deposit. Long-term equity capital is raised in the capital market, so option one is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to the Indian Financial Markets shows your real accuracy, how long you take and where you lose marks.
More Introduction to the Indian Financial Markets questions
- Which statement about the roles of SEBI and RBI in the Indian financial markets is correct?
- Which of the following is a primary market activity?
- In the Indian financial system, which of the following is classified as a money market instrument rather than a capital market instrument?
- Ms. Kavita Rao, a client, wants to understand the Indian financial system. Which statement about the primary market versus the secondary mar…
- Which of the following best describes the role of SEBI in the Indian financial markets?
- Which of the following statements about the primary market and the secondary market in India is correct?