Money market refers to the market for
A Long-term funds
B Medium-term funds
C Short-term funds
D Equity shares
Money market deals with short-term funds, usually up to one year.
Capital market deals in
A Short-term credit
B Long-term funds
C Currency exchange
D Consumer goods
Capital market provides long-term finance for investment.
Which of the following is a component of money market?
A Stock exchange
B Treasury bills
C Equity shares
D Debentures
Treasury bills are short-term instruments of money market.
Call money market deals with loans having maturity of
A One year
B One month
C One day to fourteen days
D Five years
Call money is an overnight or very short-term loan.
Treasury bills are issued by
A RBI
B Commercial banks
C Government of India
D SEBI
Treasury bills are short-term government securities.
Commercial papers are issued by
A Government
B RBI
C Large companies
D Cooperative banks
CPs are unsecured short-term instruments issued by firms.
Certificates of Deposit are issued by
A RBI only
B Commercial banks
C Stock exchanges
D Insurance companies
CDs are negotiable deposits issued by banks.
Which is NOT a function of money market?
A Liquidity management
B Short-term finance
C Capital formation
D Monetary policy transmission
Capital formation is function of capital market.
Capital market includes
A Money market only
B Primary and secondary market
C Foreign exchange market
D Commodity market
Capital market has new issue (primary) and resale (secondary) markets.
Primary market is also known as
A Old issue market
B Stock exchange
C New issue market
D Capital goods market
New securities are issued in primary market.
Secondary market deals with
A New shares
B Government securities only
C Buying and selling of existing securities
D Short-term loans
Existing securities are traded in secondary market.
Stock exchange is a part of
A Money market
B Capital market
C Commodity market
D Forex market
Stock exchange facilitates trading of long-term securities.
SEBI regulates
A Banking system
B Insurance companies
C Capital market
D Money supply
SEBI regulates securities market in India.
Which of the following is a function of capital market?
A Providing short-term loans
B Mobilization of savings
C Issue of currency
D Credit creation
Capital market channels savings into productive investment.
Which instrument belongs to capital market?
A Treasury bill
B Call money
C Equity share
D Commercial paper
Equity shares are long-term instruments.
Money market mainly helps in
A Industrial expansion
B Infrastructure development
C Meeting working capital needs
D Capital formation
Money market finances short-term working capital.
Financial inclusion means
A Inclusion of all banks
B Inclusion of financial markets
C Access to financial services for all sections
D Inclusion of foreign banks
Financial inclusion ensures banking access to weaker sections.
Which scheme aims at financial inclusion in India?
A Make in India
B Jan Dhan Yojana
C Digital India
D Skill India
PMJDY promotes universal banking access.
Financial inclusion primarily targets
A Corporate sector
B Urban population
C Rural and weaker sections
D Foreign investors
Focus is on unbanked and underserved population.
Which of the following is a benefit of financial inclusion?
A Increased inflation
B Reduced savings
C Access to credit and savings
D Increased black money
Inclusion encourages formal saving and borrowing.
Digital banking refers to
A Manual banking
B Banking through electronic platforms
C Banking only through ATMs
D Banking without RBI
Digital banking uses internet and mobile platforms.
Internet banking allows customers to
A Visit branch compulsorily
B Perform transactions online
C Print currency
D Control money supply
Internet banking provides anytime-anywhere banking services.
Mobile banking services are provided through
A Cheques
B Debit cards only
C Mobile applications
D Demand drafts
Mobile apps enable digital transactions.
Unified Payments Interface (UPI) facilitates
A International trade
B Real-time fund transfer
C Long-term loans
D Credit creation
UPI enables instant money transfer between bank accounts.
Which institution developed UPI in India?
A RBI
B SEBI
C NPCI
D SBI
NPCI developed and manages UPI.
Digital wallets are used for
A Storing cash physically
B Storing digital money
C Issuing currency
D Providing loans
Wallets store electronic money for payments.
Which of the following promotes cashless economy?
A Cheques
B Currency notes
C Digital payments
D Coins
Digital payments reduce reliance on cash.
Aadhaar-based payment system helps in
A Inflation control
B Identification-based transactions
C Issuing shares
D Forex management
Aadhaar enables biometric authentication.
One major advantage of digital banking is
A Increased paperwork
B Time-consuming process
C Convenience and speed
D Limited access
Digital banking offers fast and convenient services.
One major risk of digital banking is
A Low efficiency
B Cyber fraud
C High liquidity
D Excess savings
Cybersecurity threats are a major concern.
Which of the following is part of payment banks’ function?
A Issuing loans
B Accepting demand deposits
C Credit creation
D Issue of currency
Payment banks accept deposits but do not lend.
Payment banks have a deposit limit per customer of
A ₹50,000
B ₹1 lakh
C ₹2 lakh
D ₹5 lakh
RBI has capped deposits at ₹1 lakh.
Small finance banks mainly aim to
A Serve large industries
B Promote exports
C Provide credit to small borrowers
D Regulate money supply
They focus on MSMEs and small borrowers.
Which of the following encourages digital literacy?
A Financial inclusion
B Digital banking
C Capital market
D Money market
Digital banking promotes use of technology.
Financial literacy means
A Knowledge of banking technology
B Ability to read and write
C Understanding of financial products and services
D Knowledge of stock prices
Financial literacy helps individuals make informed financial decisions.
Which of the following reduces transaction cost?
A Manual banking
B Digital transactions
C Cash payments
D Barter system
Digital platforms reduce cost and time.
RTGS stands for
A Real Time Gross Settlement
B Rapid Transfer of Government Securities
C Real Trade Gross System
D Reserve Transfer Guarantee System
RTGS settles transactions in real time.
NEFT differs from RTGS because NEFT
A Is slower and batch-based
B Is faster
C Is international
D Is offline
NEFT settles transactions in batches.
Digital banking helps in reducing
A Financial inclusion
B Transparency
C Transaction time
D Cyber risks
Online systems speed up transactions.
Which of the following supports cashless transactions in rural areas?
A ATM only
B Mobile banking
C Cheque book
D Demand draft
Mobile banking increases reach in rural areas.
Money market instruments are generally
A High risk
B Long-term
C Highly liquid
D Illiquid
Money market instruments are safe and liquid.
Capital market instruments are generally
A Short-term
B Highly liquid only
C Long-term
D Risk-free
Capital market provides long-term funds.
Which factor is essential for development of capital market?
A Political instability
B Savings and investment
C Inflation
D Population growth
Savings must be mobilized for investment.
Financial inclusion contributes to economic development by
A Reducing savings
B Increasing informal lending
C Mobilizing idle savings
D Increasing inequality
Formal banking channels savings into productive use.
Digital banking reduces corruption mainly by
A Increasing cash use
B Enhancing transparency
C Reducing literacy
D Increasing secrecy
Digital records improve transparency.
Which of the following is NOT a money market instrument?
A Treasury bill
B Commercial paper
C Equity share
D Certificate of deposit
Equity shares belong to capital market.
Financial inclusion is important because it
A Increases inflation
B Promotes inclusive growth
C Reduces investment
D Encourages hoarding
Inclusion ensures benefits of growth reach all.
Which of the following is an example of digital payment system?
A Barter
B Cheque
C UPI
D Demand draft
UPI enables digital fund transfer.
Money market is regulated in India mainly by
A SEBI
B RBI
C Ministry of Finance
D NABARD
RBI regulates money market operations.
The ultimate goal of financial inclusion and digital banking is
A Profit maximization
B Elimination of banks
C Inclusive and sustainable economic growth
D Inflation control only
Inclusion and technology aim at broad-based development.