Money Markets Multiple Choice Questions (MCQ) PDF - 2

MCQ 6: The agreement which incurs the transaction between two parties and promise held that second party will sell security at specific maturity is classified as

1. repurchasing commercial notes
2. repurchase bills
3. purchase agreement
4. reverse repurchase agreement

MCQ 7: The repurchase agreements having maturity of one week or lesser have denominations of

1. $10 million or more
2. $20 million or more
3. $25 million or more
4. $15 million or more

MCQ 8: The instrument used by Federal Reserve to smooth the money supply and interest rates include

1. treasury notes
2. repurchase agreements
3. commercial payable notes
4. commercial receivable notes

MCQ 9: For a particular security transaction, the agreement is 'repo' with the point of view of

1. security seller
2. security buyer
3. security function
4. security function

MCQ 10: The accounting entry of the institutions who lend federal funds to other institutions is posted as

1. liability on balance sheet
2. assets on balance sheet
3. income in income statement
4. expense on income statement