2nd Year Principles of Banking Chapter 13 TestMoney Market

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. The number of financial institutions in money market is:

   1. Limited

   2. Fixed

   3. Unlimited

   4. All are possible

2. Capital market does not deal in:

   1. Shares

   2. Treasury bills

   3. Debentures

   4. Bonds

3. Money market is market of loans for:

   1. Short term

   2. Medium term

   3. Long term

   4. All the above

4. A developed or organized money market is always:

   1. Elastic

   2. Less elastic

   3. More elastic

   4. Not elastic

5. The money market means the place where:

   1. Dealing in money is transacted

   2. sale and purchase of shares

   3. Sale and purchase of property

   4. Sale and purchase of debentures

6. What is the major reason of Pakistan’s unorganized money market:

   1. Lack of cooperation among financial institutions

   2. Absence of democracy

   3. Issuance of loan on political basis

   4. All the above

7. Money market is used for loans of:

   1. Short term

   2. Medium term

   3. Long term

   4. Any term

8. Money market deals in:

   1. Promissory note

   2. Bills of exchange

   3. Marketable securities

   4. All the above

9. Which instrument is not dealt at stock exchange:

   1. Shares

   2. Debentures

   3. Both (a) and (b)

   4. Bills of exchange

10. Which institution is not the member of money market:

    1. Commercial bank

    2. Discount houses

    3. HBFC

    4. All the above