A shopkeeper marks an item 30% above the cost price and gives 20% discount to a customer. If the customer pays Rs. 832 for the item, what is its cost price?


A. Rs. 900

B. Rs. 840

C. Rs. 800

D. Rs. 720

The ratio of the speeds of two cars X and Y is 3 : 7. If X takes 240 minutes  more than Y to cover a certain distance, then find the actual time taken by Y to cover the distance.


A. 2 hours

B. 3 hours

C. 4 hours

D. 5 hours

A person bought an item at 16% discount on the labelled price. Had he bought it at 20% discount he would have saved Rs. 200. What is the price of the item?


A. Rs. 6400

B. Rs. 6000

C. Rs. 5400

D. Rs. 5000

The simple interest accrued on a sum of money comes to Rs. 896 in 7 years. If the principal is tripled after four years then what will be the total interest at the end of 7 years?


A. Rs. 1240

B. Rs. 1664

C. Rs. 1654

D. Rs. 1384

If the difference between the compound interest and the simple interest on a certain sum of money for 3 years at 8% pa is Rs. 2156, then what is the sum?


A. Rs. 109375

B. Rs. 137590

C. Rs. 125790

D. Rs. 103975

Software installed on a PC hardware component is known as 

A. BIOS

B. RAM

C. Firmware

D. CMOS

Which of the following computer languages is used for artificial intelligence?


A. FORTRAN

B. PROLOG

C. C

D. COBOL

A microprocessor is the brain of the computer and is also called


A. microchip

B. macrochip

C. macroprocessor

D. Software

The govt refused to raise foreign investment limit in the banking sector recently. Currently, the aggregate foreign investment (FDI, FII and NRI) limit for private banks and public sector banks respectively is


A. 49 percent, 20 percent

B. 51 percent, 24 percent

C. 74 percent, 20 percent

D. 74 percent, 24 percent

Which of the following teams won the 2013 edition of the Asia Cup hockey tournament held in Ipoh, Malaysia?


A. South Korea

B. India

C. New Zealand

D. None of these

A boat goes downstream from one point to another which is 128 km apart, in 8 hours. It covers the same distance upstream in 18 hours. Find the speed of the boat in still water.

A. 12.21 kmph

B. 11.55 kmph

C. 14.5 kmph

D. 17.44 kmph

A 360-metre-long train running at a speed of 64 kmph will take how much time to cross another 270-metre-long train running in the opposite direction at a speed of 56 kmph?


A. 12.1 seconds

B. 14 seconds

C. 25 seconds

D. 18.9 seconds

India's women archery team beat which of the following countries to clinch recurve team gold medal in Archery World Cup in Poland recently? It is their second World Cup title in a row?


A. China

B. South Korea

C. Australia

D. Russia

In a shelf, there are 8 Hindi, 7 English and 6 Urdu books. One book is picked up randomly. What is the probability that it is neither in Hindi nor in Urdu?


A. 7/21

B. 13/21

C. 17/21

D. 19/21

A man buys oranges at 10 for Rs. 18 and sells them at 12 for Rs. 24. What is his gain or loss percent?

A. 11.11%

B. 1.8%

C. 14.11%

D. 12.11%

A man borrows Rs. 5000 at 10% compound rate of interest. At the end of every year he pays back Rs. 800. What amount should he pay at the end of the third year to clear all his dues?


A. Rs. 3600

B. Rs. 6100

C. Rs. 5000

D. Rs. 4807

Unorganized Sector of Money Market

                The economy on one hand performs through organized sector and on other hand in rural areas there is continuance of unorganized, informal and indigenous sector. The unorganized money market mostly finances short-term financial needs of farmers and small businessmen. The main constituents of unorganized money market are:

1) Indigenous Bankers (IBs)

                Indigenous bankers are individuals or private firms who receive deposits and give loans and thereby operate as banks. IBs accept deposits as well as lend money. They mostly operate in urban areas, especially in western and southern regions of the country. The volume of their credit operations is however not known. Further their lending operations are completely unsupervised and unregulated. Over the years, the significance of IBs has declined due to growing organized banking sector.

2) Money Lenders (MLs)

                They are those whose primary business is money lending. Money lending in India is very popular both in urban and rural areas. Interest rates are generally high. Large amount of loans are given for unproductive purposes. The operations of money lenders are prompt, informal and flexible. The borrowers are mostly poor farmers, artisans, petty traders and manual workers. Over the years the role of money lenders has declined due to the growing importance of organized banking sector.

Discount And Finance House Of India (DFHI)

In 1988, DFHI was set up by RBI. It is jointly owned by RBI, public sector banks and all India financial institutions which have contributed to its paid up capital. It is playing an important role in developing an active secondary market in Money Market Instruments. In February 1996, it was accredited as a Primary Dealer (PD). The DFHI deals in treasury bills, commercial bills, CDs, CPs, short term deposits, call money market and government securities.

Instruments of Money Market

Following are the instruments which are traded in money market:

Call and Notice Money Market:

• The market for extremely short-period is referred as call money market.
• Deals in short term finance with a maturity period from one day to 14 days.
• Both Lenders and Borrowers: Commercial banks, both Indian and foreign, co-operative banks, Discount and Finance House of India Ltd (DFHI), Securities trading corporation of India (STCI).
• Only Lenders: Life Insurance Corporation of India (LIC), Unit Trust of India (UTI), National Bank for Agriculture and Rural Development (NABARD).
• Call Rate / Money Rate: A high volatile interest rate. The call money rate is determined by demand and supply of short term funds.
• The major call money markets are in Mumbai, Kolkata, Delhi, Chennai, Ahmadabad.

Treasury Bill Market (T - Bills):

• This market deals in Treasury Bills of short term duration issued by RBI on behalf of Government of India.
• Three types of treasury bills are issued through auctions, namely 91 day, 182 day and 364day treasury bills.
• State government does not issue any treasury bills.
• Interest is determined by market forces. Treasury bills are available for a minimum amount of Rs. 25,000 and in multiples of Rs. 25,000. Periodic auctions are held for their Issue.
• T-bills are highly liquid, readily available; there is absence of risk of default. Commercial Banks, Primary Dealers, Mutual Funds, Corporate, Financial Institutions, Provident or Pension Funds and Insurance Companies can participate in T-bills market.

Commercial Bills:

• Commercial bills are short term, negotiable and self liquidating money market instruments with low risk.
• A bill of exchange is drawn by a seller on the buyer to make payment within a certain period of time.
• Generally, the maturity period is of three months. Commercial bill can be resold a number of times during the usance period of bill.
• The commercial bills are purchased and discounted by commercial banks and are rediscounted by financial institutions like EXIM banks, SIDBI, IDBI etc.
• RBI have introduced an innovative instrument known as “Derivative Usance Promissory Notes” with a view to eliminate movement of papers and to facilitate multiple rediscounting.

Certificate of Deposits (CDs):

• CDs are issued by Commercial banks and development financial institutions.
• CDs are unsecured, negotiable promissory notes issued at a discount to the face value.
• The scheme of CDs was introduced in 1989 by RBI. The main purpose was to enable the commercial banks to raise funds from market.
• At present, the maturity period of CDs ranges from 3 months to 1 year. They are issued in multiples of Rs. 25 lakh subject to a minimum size of Rs. 1 crore.
• CDs can be issued at discount to face value. They are freely transferable but only after the lock-in-period of 45 days after the date of issue.
• In India the size of CDs market is quite small.
• In 1992, RBI allowed four financial institutions ICICI, IDBI, IFCI and IRBI to issue CDs with a maturity period of one year to three years.

Commercial Papers (CP):

• Commercial Papers were introduced in January 1990. The Commercial Papers can be issued by listed company which have working capital of not less than Rs. 5 crores.
• They could be issued in multiple of Rs. 25 lakhs. The minimum size of issue being Rs. 1 crore.
• At present the maturity period of CPs ranges between 7 days to 1 year.
• CPs are issued at a discount to its face value and redeemed at its face value.

The Repo Market ;-

• Repo was introduced in December 1992. Repo is a repurchase agreement. It means selling a security under an agreement to repurchase it at a predetermined date and rate.
• Repo transactions are affected between banks and financial institutions and among bank themselves, RBI also undertake Repo.
• In November 1996, RBI introduced Reverse Repo. It means buying a security on a spot basis with a commitment to resell on a forward basis.
• Reverse Repo transactions are affected with scheduled commercial banks and primary dealers.
• In March 2003, to broaden the Repo market, RBI allowed NBFCs, Mutual Funds, Housing Finance and Companies and Insurance Companies to undertake REPO transactions.

Structure of Money Market

Two type of players in Money Market, they are:

Organized Sector:

                

            The organized sector is within the direct purview of RBI regulations. It consists of Reserve Bank of India, private banks, public sector banks, development banks and other Non Banking Financial Companies (NBFCs) such as Life Insurance Corporation of India (LIC), the International Finance Corporation, IDBI, and the co-operative sector.

Unorganized Sector:

                It consists of Moneylenders, indigenous bankers, chit funds, non-banking financial institutions etc.