Which of the following is NOT a component of the money market in India? MCQ with Answer and Explanation

Which of the following is NOT a component of the money market in India?
A. Equity shares
B. Certificate of Deposit
C. Treasury Bills
D. Commercial Paper
Answer: Option A
Solution (By JKSSB Mock Tests)
Equity shares are long-term instruments and form part of the capital market. Money market instruments include Treasury Bills, Commercial Paper, Certificates of Deposit and call money.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on inter-state supply is:
A. IGST
B. CGST
C. SGST
D. UTGST

Correct Answer: Option A


Explanation:
Inter-state supplies attract IGST.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Bounded Rationality' associated with Herbert Simon implies that:
A. Rationality is unbounded
B. Individuals always optimise with unlimited computational power
C. Individuals are limited in their cognitive capacity and information and therefore satisfice rather than optimise
D. Only perfect information is assumed

Correct Answer: Option C


Explanation:
Bounded rationality recognises that human decision-makers face cognitive limitations and incomplete information, so they typically seek satisfactory rather than optimal solutions.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'adaptive expectations' hypothesis assumes people form expectations based on:
A. past values of the variable
B. rational models only
C. random guesses
D. future policy announcements only

Correct Answer: Option A


Explanation:
Adaptive expectations are formed based on past observations.

This question belongs to: Economy GK Economy Set 1