Money And Capital Markets - SS1 Economics Past Questions & Answers - page 1

1

Which of the following securities is not traded in the money market?

 

A

Treasury bills

 

B

Commercial papers

C

Corporate bonds

 

D

Certificates of deposit

CORRECT OPTION: c
2

Which of the following securities is not traded in the capital market?

A

Stocks

 

B

Bonds

C

Treasury bills

 

 

D

Financial instruments

CORRECT OPTION: c
3

Which market provides short-term funds to institutions?

A

 Capital market

 

B

Commodity market

C

Money market

 

D

Bond market

CORRECT OPTION: c
4

Which market provides long-term funds to institutions?

A

 Money market

 

B

Bond market

C

Capital market 

 

 

D

Foreign exchange market

CORRECT OPTION: c
5

Which of the following is not a long-term security?

A

Stocks

 

B

Bonds

C

Treasury bills

D

Mutual funds

 

CORRECT OPTION: c
6

Define the money market and provide two examples of securities traded in the market.

 

 

The money market is a financial market where short-term, low-risk debt securities are traded. The securities traded in the money market include Treasury bills and commercial papers.

7

What is the capital market, and how does it differ from the money market?

 

The capital market is a financial market where long-term securities such as stocks, bonds, and other financial instruments are traded. It differs from the money market because it provides opportunities for investors to buy and sell securities for long-term investment purposes.

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