Question : Which of the following statement is correct? Statement 1:Instruments of the money market are close substitutes for money. Statement 2: Discount Finance House of India provides a ready market for money market instruments.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Both are true
Solution : Money market is that market way transactions in short term securities are made it means those securities with a payment period is up to 1 year since their maturity period is very short they are also called near money. Discount Finance House of India provides a ready market for money market instruments.Instruments of the money market are close substitutes for money. Money market instruments are highly liquid in nature.
Hence, option A is correct.
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Question : Which feature of money market is highlighted in the given statement? Statement: The discount finance house of India has been established for this purpose.
Option 1: More liquidity
Option 2: Low transaction cost
Option 3: Speedy transactions
Option 4: Consists of many sub markets
Question : Who announce budget in India?
Option 1: Minister of Finance
Option 2: RBI governor
Option 3: Prime Minister of India
Option 4: Finance Minister
Question : Finance Commission is appointed by the President of India after every
Option 1: 5 years
Option 2: 6 years
Option 3: 4 years
Option 4: None of these
Question : The Finance Commission in India is appointed by
Option 1: Prime Minister of India
Option 2: President of India
Option 3: Chairman of Rajya Sabha
Option 4: Speaker of Lok Sabha
Question : ___________ is a financial institution that provides long-term credit for agriculture and rural development.
Option 1: Agricultural Finance Corporation
Option 2: Rural Development Bank
Option 3: Small Industries Development Bank of India (SIDBI)
Option 4: National Bank for Agriculture and Rural Development (NABARD)
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