English
Hindi

Question

Download Solution PDF

Which of the following statements are the defects of Indian Money Market?

(A) Profitable Investment

(B) Dichotomy in Indian Money Market

(C) Financing Industry

(D) Diversity in interest rates

Choose the correct answer from the options given below:

This question was previously asked in
UGC NET Paper-2: Commerce 25th Dec 2021 Shift 1
Download PDF Attempt in App
View all UGC NET Papers >
  1. A, B and C only
  2. B and C only
  3. A, B and D only
  4. B and D only

Answer (Detailed Solution Below)

Option 4 : B and D only
Free Tests
View all Free tests >
Free
UGC NET Paper 1: Held on 21st August 2024 Shift 1
50 Qs. 100 Marks 60 Mins
Start Now

Detailed Solution

Download Solution PDF

The correct answer is option 4.

Important PointsFollowing are the defects of the Indian money market:

  • Dichotomy between Organised and Unorganised Sectors
  • Predominance of Unorganised Sector
  • Wasteful Competition
  • Absence of All-India Money Market
  • Inadequate Banking Facilities
  • Shortage of Capital
  • Seasonal Shortage of Funds
  • Diversity of Interest Rates
  • Absence of Bill Market

Therefore, the correct answer is B and D only.

Download Solution PDF
Latest UGC NET Updates

Last updated on Jul 4, 2025

-> The UGC NET Response Sheet will be available soon on the official website.

-> The UGC NET June 2025 exam will be conducted from 25th to 29th June 2025.

-> The UGC-NET exam takes place for 85 subjects, to determine the eligibility for 'Junior Research Fellowship’ and ‘Assistant Professor’ posts, as well as for PhD. admissions.

-> The exam is conducted bi-annually - in June and December cycles.

-> The exam comprises two papers - Paper I and Paper II. Paper I consists of 50 questions and Paper II consists of 100 questions. 

-> The candidates who are preparing for the exam can check the UGC NET Previous Year Papers and UGC NET Test Series to boost their preparations.

Exams Tests Super Practice

More Money Market Questions

Q1.Which of the following statements are true in context of efficient market? A. Equilibrium rates of return will prevail B. Investor cannot earn a positive return C. Volatility will be very high D. Securities of listed firms sell at their fair values E. Investors are generally risk-averse Choose the most appropriate answer from the options given below:
Q2.Which one of the following is not a part of organised money market?
Q3.Which of the following statements are the defects of Indian Money Market? (A) Profitable Investment (B) Dichotomy in Indian Money Market (C) Financing Industry (D) Diversity in interest rates Choose the correct answer from the options given below:

More Types of Financing Questions

Q1.Which of the following are related to primary capital market? a. IPO b. Long Term Loans c. Venture Capital d. Letters of Credit e. Participation Certificates Choose the most appropriate answer from the options given below: 
Q2.One of the assumptions in Black-Scholes Option Pricing Model is that underlying asset prices are:
Q3.The Kinked-shaped revenue curve of a firm relates to which one type of the market structure?
Q4.Which of the following statements are true in context of efficient market? A. Equilibrium rates of return will prevail B. Investor cannot earn a positive return C. Volatility will be very high D. Securities of listed firms sell at their fair values E. Investors are generally risk-averse Choose the most appropriate answer from the options given below:
Q5.Firm A wants to acquire Firm B and the financial details of the firms are-   A B Market Price per share Rs. 50 Rs. 20 Number of shares 1,000,000 500,000 Market value of the firm Rs. 50 million Rs. 10 million If the merger is expected to bring gains which have a present value of Rs. 10 million and Firm A offers one share for every two shares of Firm B to the shareholders of Firm B, the apparent cost of acquiring firm B is
Q6.Which approach contended that the market value of the firm is not at all affected by the capital structure?
Q7.Statement (I): According to Plato, a capitalist system is unjust because of many reasons including distributive injustice. Statement (II): Capitalism leads to alienation of workers. Code:
Q8.The following two statements relate to receivables management. Choose the correct code for the statements being correct or incorrect. Statement I: The major controllable decision variables for deciding the credit policy are the credit standards and analysis and the credit terms only. Statement II : Factoring is a popular mechanism of managing, financing and collecting receivables.
Q9.A company's share is currently selling for Rs. 50 and is expecting a dividend of Rs. 3 per share after one year which is expected to grow at 8% indefinitely. What is the equity capitalisation rate?
Q10.Which one of the following is not a part of organised money market?

More Accountancy Questions

Q1.Which of these books is not related to ' Non Trading concerns ' ?
Q2.Preference shares are entitled to the following.
Q3.Ways of creating secret reserve 1. by supressing the sale 2. by undervaluing stock-intrade and goodwill 3. by charging excessive depreciation 4. by charging capital expenditure to Profit & Loss A/c 
Q4.A Bank Reconciliation Statement is a
Q5.Which of the following statements are true? 1. Prepaid rent is a Personal A/c. 2. Interest on Drawings is an income for the business. 3. Accrued income and income due but not received are same. 4. Cost of obtaining licence to carry out business is a capital expenditure.
Q6.Which of the following is not an example of Capital Reserve?
Q7.Match List–I with List–II : List I (Types of Report) List II (Example) (a) Demand Report (i) Profit & Loss A/c (b)  Responsibility Report (ii)  Inventory valuation report (c) Summary Report (iii) Inquiry of inventory status regarding overstocking (d)  Exception Report (iv) Report regarding different aspects of purchases Select the correct answer using the codes given below. 
Q8.Which of the following statements are true? 1. A company cannot purchase its own equity shares. 2. A company can issue its shares at a discount by passing a special resolution. 3. The interest rate charged on calls-in-arrear and the interest rate payable on calls-in-advance are the same as per provisions of Table-F of Schedule-I of the Companies Act, 2013. 
Q9.Match List–I with List–II : List I (Transaction) List II (Activity)  (a) Cash payments of salaries and wages 1. Investing (b) Cash proceeds from issuing shares at a premium 2. Operating (c) Payment of income tax 3. Financing (d) Tax deducted at source on interest received from subsidiary company     Select the correct answer using the codes given below. 
Q10.An accounting information system processes the financial transactions and events based on
Testbook Edu Solutions Pvt. Ltd.
1st & 2nd Floor, Zion Building,
Plot No. 273, Sector 10, Kharghar,
Navi Mumbai - 410210
support@testbook.com
Toll Free:1800 833 0800
Office Hours: 10 AM to 7 PM (all 7 days)
Company
About usCareers We are hiringTeach Online on TestbookPartnersMediaSitemap
Products
Test SeriesTestbook PassOnline CoursesOnline VideosPracticeBlogRefer & EarnBooks
Copyright © 2014-2022 Testbook Edu Solutions Pvt. Ltd.: All rights reserved
User PolicyTermsPrivacy
Hot Links： online teen patti teen patti joy vip teen patti palace teen patti rich teen patti gold new version 2024