Regulation of Money Markets (RBI)

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Which of the following are characteristics of Treasury Bills?

Short-term financial instruments

Widely traded on the discount market

Highly liquid securities

All of the above

Which of the following would ‘tighten’ the liquidity situation of banks?

Increased sales of government securities to individuals or institutions who pay for them from their bank

Regulations requiring the banks to maintain positive end-of-day balances with the Bank of England

Both 1 and 2

Lower levels of taxation and reductions in tax receipts to the Treasury

Which of the following is an organised markets that enable the existing equity and debt of issuing companies to be traded?

Secondary markets

Discount market

Gilt repo market

Primary capital markets

In which of the following, short-term financial instruments are bought and sold at prices below their redemption value on maturity?

Secondary market

Discount market

Gilt repo market

Primary capital markets

Which of the following markets enable new issues of equity and debt to be traded?

Secondary markets

Discount markets

Primary capital markets

Gilt repo market