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NISM Series IC Equity Derivatives — free MCQ practice

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Securities maturing in under a year with very low risk trade in the:

  1. Money market
  2. Model market
  3. Motor market
  4. Mineral market
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Correct answer: A. Money market

1. The maturities are very short. 2. Default is rare on these instruments. 3. They trade in the money market. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._

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Money market securities trade easily without losing value. That property is called:

  1. Locality
  2. Liquidity
  3. Longevity
  4. Legality
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Correct answer: B. Liquidity

1. A holder can sell quickly. 2. The price barely moves on sale. 3. That property is liquidity. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._

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Who issues money market securities to meet short term needs?

  1. Banks and firms
  2. Bakers and farmers
  3. Builders and fitters
  4. Barbers and tailors
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Correct answer: A. Banks and firms

1. The issuers need to borrow briefly. 2. Governments and corporations do too. 3. So banks and firms issue them. _Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._

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