11. When the money is lent for more than 1 day but for not more than 14 days is called?
1. Call Money
2. Notice Money
3. Demand Money
4. Term Money
5. None of the above
Option “2” is correct. Notice Money” means borrowing or lending in unsecured funds for tenors up to and inclusive of 14 days excluding overnight borrowing.
12. The lending outstanding by Scheduled Commercial banks in call money market shall not exceed_____% of capital funds on fortnightly basis
1. 25
2. 30
3. 35
4. 40
5. 45
Option “1” is correct. On a fortnightly average basis, lending outstanding should not exceed 25 per cent of their capital funds. However, banks are allowed to lend a maximum of 50 per cent of their capital funds on any day, during a fortnight.
13. The Borrowing outstanding by Scheduled Commercial banks in call money market shall not exceed_____% of capital funds on fortnightly basis-
1. 50
2. 90
3. 80
4. 100
5. 75
Option “4” is correct. On a fortnightly average basis, borrowing outstanding should not exceed 100 per cent of capital funds (i.e., sum of Tier I and Tier II capital) of latest audited balance sheet. However, banks are allowed to borrow a maximum of 125 per cent of their capital funds on any day, during a fortnight.
14. The Borrowing outstanding by cooperative banks in call money market shall not exceed_____% of aggregate deposits of previous year on daily basis?
1. 1
2. 2
3. 3
4. 4
5. 5
Option “2” is correct. Outstanding borrowings of State Co-operative Banks/District Central Co-operative Banks/ Urban Co-operative Banks in call/notice money market, on a daily basis should not exceed 2.0 per cent of their aggregate deposits as at end March of the previous financial year.
15. The lending outstanding by cooperative banks in call money market shall not exceed_____% of aggregate deposits of previous year on daily basis?
1. 1
2. 2
3. 3
4. 4
5. No limit
Option “5” is correct. There is no limit on lending outstanding of cooperative Banks in call and notice money market.
16. The Borrowing outstanding by primary dealers in call money market shall not exceed_____% of net owned funds of previous year
1. 100
2. 200
3. 125
4. 225
5. 250
Option “4” is correct. PDs are allowed to borrow, on average in a reporting fortnight, up to 225 per cent of their net owned funds (NOF) as at end-March of the previous financial year.
17. The lending outstanding by primary dealers in call money market shall not exceed_____% of net owned funds of previous year
1. 25
2. 30
3. 35
4. 40
5. 45
Option “1” is correct. PDs are allowed to lend in call/notice money market, on average in a reporting fortnight, up to 25 per cent of their NOF.
18. The settlement in money market takes place through
1. Cheque
2. RTGS
3. IMPS
4. UPI
5. None of the above
Option “2” is correct. The settlement of money market deals is by electronic funds transfer on the New Generation – Real Time Gross Settlement (NG-RTGS) system operated by the RBI. The repayment of the borrowed money also takes place through the NG-RTGS system on the due date of repayment.
19. Deals in the Call/Notice/Term money market can be done from____
1. 9:00 am to 5:00 pm
2. 10:00 am to 5:00 pm
3. 9:30 am to 5:00 pm
4. 9:00 am to 4:00 pm
5. 10:30 am to 5:00 pm
Option “1” is correct. Deals in the Call/Notice/Term money market can be done from 9:00 am to 5:00 pm on each business day or as specified by RBI from time to time.
20. The Call/Notice Money transactions can be executed through
(1) Negotiated Dealing system call
(2) Screen based system
(3) Quote driven electronic trading system
(4) over the counter
1. 1 and 4
2. 1 and 2
3. 2,3,4
4. 1,2,4
5. All the above
Option “5” is correct. The Call/Notice Money transactions can be executed either on NDS-Call (Negotiated dealing system call), a screen–based, negotiated, quote-driven electronic trading system managed by the Clearing Corporation of India (CCIL), or over the counter (OTC) through bilateral communication.