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B Com Exam  >  B Com Test  >  Indian Economy  >  Test: Money Market and Capital Market structure in India- 1 - B Com MCQ

Money Market and Capital structure in India- 1 - Free MCQ Practice Test


MCQ Practice Test & Solutions: Test: Money Market and Capital Market structure in India- 1 (10 Questions)

You can prepare effectively for B Com Indian Economy with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Money Market and Capital Market structure in India- 1". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Money Market and Capital Market structure in India- 1 - Question 1
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What is the primary function of the "Call Money Market"?

Detailed Solution: Question 1

The Call Money Market deals with call loans, where institutions borrow and lend short-term funds on a day-to-day basis.

Test: Money Market and Capital Market structure in India- 1 - Question 2
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What role does the "Clearing Corporation of India Limited (CCIL)" play in the Indian money market?

Detailed Solution: Question 2

The CCIL is responsible for clearing transactions in government securities and repurchase agreements on the Negotiated Dealing System.

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Test: Money Market and Capital Market structure in India- 1 - Question 3
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What is the primary reason behind the seasonality of the Indian money market?

Detailed Solution: Question 3

The Indian money market experiences seasonality due to its agricultural-based economy, with higher demand for funds during busy agricultural seasons.

Test: Money Market and Capital Market structure in India- 1 - Question 4
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What is the primary function of a money market?

Detailed Solution: Question 4

The money market primarily deals with short-term funds and provides liquidity to borrowers while meeting the short-term requirements of borrowers.

Test: Money Market and Capital Market structure in India- 1 - Question 5
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Which financial institution plays a pivotal role in the Indian money market?

Detailed Solution: Question 5

The central bank, Reserve Bank of India (RBI), holds a strategic position in the Indian money market. It regulates and influences the market by controlling liquidity and interest rates.

Test: Money Market and Capital Market structure in India- 1 - Question 6
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What is the purpose of a "Discount Market" in the money market?

Detailed Solution: Question 6

The Discount Market specializes in discounting short-term commercial bills, providing flexibility to banks and financing home and foreign trade.

Test: Money Market and Capital Market structure in India- 1 - Question 7
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Which committee was formed in 1984 to review the Indian monetary system?

Detailed Solution: Question 7

The Sukhamoy Chakravarty Committee was appointed in 1984 to review the Indian monetary system and suggest reforms.

Test: Money Market and Capital Market structure in India- 1 - Question 8
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What is the purpose of a "Money Market Mutual Fund (MMMF)"?

Detailed Solution: Question 8

MMMFs were established to provide short-term investment revenue by selling units to corporate and individual investors.

Test: Money Market and Capital Market structure in India- 1 - Question 9
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How has the interest rate policy in the Indian money market changed over time?

Detailed Solution: Question 9

The interest rate policy has shifted towards a more liberal approach, where interest rates are determined by the working of market forces, except for a few regulations.

Test: Money Market and Capital Market structure in India- 1 - Question 10
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What major role does the Reserve Bank of India (RBI) play in the Indian money market?

Detailed Solution: Question 10

The RBI holds a pivotal role in regulating and influencing the Indian money market through various policies and mechanisms.

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About this B Com Practice Test

This test contains 10 MCQs on Money Market and Capital Market structure in India- 1 with detailed solutions for each question. It is part of the Indian Economy course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Money Market and Capital Market structure in India- 1 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Indian Economy course. The course offers:
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