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