Indian Economy MCQs

Q.  Which among the following is the major functions of Money market in India?
1. Money Markets help in effective implementation of the RBI’s monetary policy
2. Money markets help to maintain demand and supply equilibrium with regard to short term funds.
3.They help in maintaining liquidity in the economy
Choose the correct option from the choices given below:


a. 1,2 and 3 only
b. 2 only
c. 1 and 3 only
d. 3 only


ANSWER: See Answer
 
The major function of the money markets is to cater to the short term financial needs of the economy. The other functions are as follows:
1. Money Markets help in effective implementation of the RBI’s monetary policy
2. Money markets help to maintain demand and supply equilibrium with regard to short term funds
3. They cater to the short term fund requirement of the governments
4. They help in maintaining liquidity in the economy
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