Every Book Back multiple-choice question from Money Market (12th Standard Commerce, Samacheer Kalvi) — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
The money invested in the call money market provides high liquidity with ____.
A. Low ProfitabilityCorrect
B. High Profitability
C. Limited Profitability
D. Medium Profitability
Explanation. Call money is lent for very short periods, so it can be recovered almost at once (high liquidity) but earns only a low return. The book's answer key gives low profitability.
Q2
A major player in the money market is the ____.
A. Commercial BankCorrect
B. Reserve Bank of India
C. State Bank of India
D. Central Bank
Explanation. The lesson says commercial banks generally play a dominant role in the money market and are its nerve centre and principal suppliers of short-term funds. The book's key gives Commercial Bank.
Q3
Debt instruments issued by corporate houses for raising short-term financial resources from the money market are called ____.
A. Treasury Bills
B. Commercial PaperCorrect
C. Certificate of Deposit
D. Government Securities
Explanation. Commercial paper is the short-term debt instrument issued by corporate houses. Treasury bills and government securities are issued by the Government, and certificates of deposit by banks and financial institutions.
Q4
The market for buying and selling of Commercial Bills of Exchange is known as a ____.
A. Commercial Paper Market
B. Treasury Bill Market
C. Commercial Bill MarketCorrect
D. Capital Market
Explanation. Commercial bills are bills of exchange drawn by a seller of goods on a buyer to raise short-term money, and they are traded in the commercial bill market, a sub-market of the money market.
Q5
A marketable document of title to a time deposit for a specified period may be referred to as a ____.
A. Treasury Bill
B. Certificate of DepositCorrect
C. Commercial Bill
D. Government Securities
Explanation. The lesson describes a certificate of deposit as a document of title to a time deposit, issued by banks as a usance promissory note, which is negotiable and transferable in the market.
These are the Book Back multiple-choice questions for Money Market from the Tamil Nadu State Board (Samacheer Kalvi) 12th Standard Commerce syllabus. Each question shows the correct option and an original, step-by-step explanation so you understand the method, not just the answer. Use the answer key above to jump to any question, then take the practice test to check yourself under exam-like conditions.
Frequently asked questions
How many MCQs are there in Money Market?
This chapter has 5 book-back multiple-choice questions, each with the correct answer and a step-by-step explanation.
Are these 12th Standard Commerce MCQs free to practise online?
Yes. Every question, answer and explanation here is free, and you can also take them as a timed practice test.
Where can I find the Money Market book-back answers?
The correct option for each question is highlighted on this page with a worked explanation, plus a quick answer-key summary at the top.
