Question : Which feature of money market is highlighted in the given statement? Statement: The discount finance house of India has been established for this purpose.
Option 1: More liquidity
Option 2: Low transaction cost
Option 3: Speedy transactions
Option 4: Consists of many sub markets
Correct Answer: More liquidity
Solution : One important feature of the money market is more liquidity in the transaction of securities in this market there is a formal arrangement of creating liquidity. The discount finance house of India has been established for this purpose it is always ready to provider ready market for money market instruments.
Hence option A is correct.
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Question : Which of the following statement is correct? Statement 1:Instruments of the money market are close substitutes for money. Statement 2: Discount Finance House of India provides a ready market for money market instruments.
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