Money Markets MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Money Markets, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Money Markets MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Money Markets mcq questions that explore various aspects of Money Markets problems. Each MCQ is crafted to challenge your understanding of Money Markets principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Money Markets MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Money Markets. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Money Markets knowledge to the test? Let's get started with our carefully curated MCQs!

Money Markets MCQs | Page 8 of 10

Q71.
The interest rate at which the federal funds are borrowed and can be lent is classified as
Discuss
Answer: (d).federal funds rate
Q72.
The selling price is added in to repurchase agreement paid interest to calculate
Discuss
Answer: (b).repurchase price of securities
Q73.
The agreement which incurs the transaction between two parties and promise held that second party will repurchase security at specific price is classified as
Discuss
Answer: (c).repurchase agreement
Q74.
The type of funds that have transfer transactions between financial institutions are classified as
Discuss
Answer: (a).federal funds
Q75.
The financial instruments are traded in money markets and then traded in
Discuss
Answer: (b).capital markets
Q76.
The principal issuer of the commercial papers are commercial banks and the major investors of principal investors includes
Discuss
Answer: (d).all of the above
Q77.
The government issues treasury bills at the discounted rate from
Discuss
Answer: (a).face value
Q78.
The transactions in market of treasury bills is mostly transacted over telephone and hence classified as
Discuss
Answer: (a).decentralized
Q79.
If the 175 days T-bill have the maturity of one year with the value of $8000 and face value is $10000 then reported discount yield is
Discuss
Answer: (b).0.4114
Q80.
The repurchase price is $380, selling price is $310 and the number of days till maturity are 4 then yield of repurchase agreement is 2500
Discuss
Answer: (c).0.1658
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