JAIIB · IEIFS · Chapter 29

Overview of Financial Markets

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

Maturity — Type A / Type B?

A

Type A: Money Market (≤ 1 year); Type B: Capital Market (> 1 year / equity)

Q

Nature of Claim — Type A / Type B?

A

Type A: Debt Market; Type B: Equity Market

Q

Time of Delivery — Type A / Type B?

A

Type A: Cash / Spot Market; Type B: Forward / Futures / Derivatives Market

Q

Mode of Trading — Type A / Type B?

A

Type A: OTC (bilateral); Type B: Exchange-Traded (centralised)

Q

Stage of Issuance — Type A / Type B?

A

Type A: Primary Market (new issues); Type B: Secondary Market (existing securities)

Q

What is Money Market?

A

is the wholesale market for short-term debt of maturity up to one year.

Q

RBI?

A

Regulator + lender of last resort + repo / SDF counterparty

Q

Scheduled Commercial Banks?

A

Largest borrowers and lenders in call / notice / term money

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