In this video, I have put MCQs on Money Market and Capital Market. This will be very helpful for the preparation of Grade B Dr Exam, UPSC, SEBI, MPPSC, State Public Sevice Commission Exam.
Money Market Important MCQs, Capital Market Important MCQs.
The money market is the market for buying and selling short-term financial products, whereas the capital market is the marker where long terms financial products trade.
The capital market is regulated by SEBI in India, whereas the money market is regulated by RBI.
Some of the main instruments of money marker are: Call Money, Short Notice, Repo, Reverse Repo, Certificate of Deposits, Commercial Papers, treasury bill etc,
Instruments in the capital market are: Bonds: Government Bonds and Corporate bonds, zero coupon bonds, fixed bond, floating bond, convertible bonds, premium bonds, etc, Debentures.
Equity products like shares, preference shares, venture capital, derivatives etc.
Paper-III -Finance and Management:
(a) Financial System
1. Regulators of Banks and Financial Institutions
2. Reserve Bank of India- functions and conduct of monetary policy, Banking System in India, Financial Institutions – SIDBI, EXIM, NABARD, NHB, etc.
(b) Financial Markets
Primary and Secondary Markets (Forex, Money, Bond, Equity,etc.), functions, instruments, recent developments.
(c) General Topics
1. Risk Management in Banking Sector
2. Basics of Derivatives: Forward, Futures and Swap
3. Changing Landscape of Banking sector
4. Recent Developments in the Financial Sector, Portfolio Investment, Public Sector Reforms, Disinvestments
5. Financial Inclusion- use of technology
6. Alternate source of finance, private and social cost-benefit, Public-Private Partnership
7. Corporate Governance in Banking Sector, role of e-governance in addressing the issues of corruption and inefficiency in the government sector.
8. The Union Budget – Direct and Indirect taxes; Non-tax sources of Revenue, GST, Thirteenth Finance Commission and GST, Finance Commission, Fiscal Policy, Fiscal Responsibility and Budget Management Act (FRBM),
9. Inflation: Definition, trends, estimates, consequences, and remedies (control): WPI, CPI - components and trends.
Suggested reference material:
a. An introduction to Economics – A W Stonier and D C Hauge
b. Monetary Theory and Public Policy – Kenneth Kurihara
c. Indian Economy – Mishra and Puri
d. Indian Economy – R. Dutt and KPM Sundaram
e. Economic Growth and Development – Mayer and Baldwin
f. Major economic newspapers and Economic and Political Weekly
g. Public Finance – K K Andley and Sundaram
h. Financial Management – Prasanna Chandra