BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Secondary market
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Discount market
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Gilt repo market
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Primary capital markets
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Detailed explanation-1: -Q. In which of the following, short-term financial instruments are bought and sold at prices below their redemption value on maturity? Notes: Short-term financial instruments are bought and sold at prices below their redemption value on maturity in Discount market.
Detailed explanation-2: -The main sources of short-term financing are (1) trade credit, (2) commercial bank loans, (3) commercial paper, a specific type of promissory note, and (4) secured loans.
Detailed explanation-3: -Bonds, debentures, leases, certificates, bills of exchange and promissory notes are examples of debt instruments. These instruments also give market participants the option to transfer the ownership of debt obligation from one party to another.
Detailed explanation-4: -Basic examples of financial instruments are cheques, bonds, securities. There are typically three types of financial instruments: cash instruments, derivative instruments, and foreign exchange instruments.