 |  Indian Financial Market 38 Flashcards |  Start |
 | The money market primarily deals with ___ financial instruments with a maturity period of up to 364 days. |  Card: 1 / 38 |
| Short-term | Card: 2 / 38 |
| True or False: The discount rate in the money market is determined solely by the Reserve Bank of India (RBI). | Card: 3 / 38 |
| False. The discount rate is determined by the market and guided by the availability of and demand for cash. | Card: 4 / 38 |
| The organised money market in India was significantly developed after the recommendations of which committee? | Card: 5 / 38 |
| Chakravarthy Committee | Card: 6 / 38 |
| What is the role of the repo rate in the money market? | Card: 7 / 38 |
| The repo rate, announced by the RBI, serves as a guiding rate for the current discount rate. | Card: 8 / 38 |
| True or False: The money market operates exclusively through organised channels in India. | Card: 9 / 38 |
| False. The money market operates in both organised and unorganised channels. | Card: 10 / 38 |
| True or False: Mutual funds in India are regulated by both the RBI and SEBI. | Card: 11 / 38 |
| True | Card: 12 / 38 |
| What are the three types of schemes offered by mutual funds? | Card: 13 / 38 |
| Open-ended Schemes, Closed-ended Schemes, Exchange-Traded Funds (ETFs) | Card: 14 / 38 |
| Fill in the blank: ___ are a mix of open-ended and closed-ended schemes and are traded on stock exchanges. | Card: 15 / 38 |
| Exchange-Traded Funds (ETFs) | Card: 16 / 38 |
| True or False: Closed-ended schemes allow investors to buy and sell units at any time after the initial offer. | Card: 17 / 38 |
| False. Closed-ended schemes issue units only once during the New Fund Offer (NFO) and are traded on stock exchanges thereafter. | Card: 18 / 38 |
| What is the role of the trustees in a mutual fund? | Card: 19 / 38 |
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| Trustees oversee the operations of the Asset Management Company (AMC) and have a fiduciary responsibility to manage investors' funds. | Card: 20 / 38 |
| True or False: The DFHI was set up solely by the Reserve Bank of India without any participation from public sector banks. | Card: 21 / 38 |
| False. The DFHI was set up by the RBI jointly with public sector banks and financial institutions. | Card: 22 / 38 |
| What role did Public Sector Undertakings (PSUs) play in India's industrialisation after Independence? | Card: 23 / 38 |
| They were primarily responsible for achieving rapid growth and development through capital, technology, and labor management. | Card: 24 / 38 |
| Name two Specialized Financial Institutions (SFIs) established in the late 1980s. | Card: 25 / 38 |
| IFCI Venture Capital Funds Ltd and Tourism Finance Corporation of India Ltd | Card: 26 / 38 |
| True or False: As of April 2020, there were 163 scheduled commercial banks operating in India. | Card: 27 / 38 |
| True | Card: 28 / 38 |
| The nationalisation of life and non-life insurance businesses in India occurred in ___ and ___ respectively. | Card: 29 / 38 |
| 1956 for life insurance and 1970 for non-life insurance | Card: 30 / 38 |
| True or False: The Forward Markets Commission (FMC) continues to operate independently after its merger with SEBI in 2015. | Card: 31 / 38 |
| False. The FMC was merged into SEBI and no longer operates independently. | Card: 32 / 38 |
| What role does the Ministry of Finance play in India's financial regulatory framework? | Card: 33 / 38 |
| The Ministry of Finance is involved in policy making and has representatives on the boards of SEBI, IRDA, and RBI. | Card: 34 / 38 |
| Fill in the blank: By April 2020, India had a total of ___ insurance companies operating in its market. | Card: 35 / 38 |
| 57 | Card: 36 / 38 |
| Which regulatory agency is responsible for overseeing credit products, savings, and remittances in India? | Card: 37 / 38 |
| The Reserve Bank of India (RBI)
| Card: 38 / 38 |
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