Questions and Answers
What are the operations of RBI under liquidity management?
Open Market Operations (OMO) and Government Securities Acquisition Programme (GSAP)
What is the basis for valuing unquoted SLR securities?
Carrying cost
What is the valuation rule for zero coupon bonds (ZCBs) if market value is absent?
Marked to market with reference to the present value of the ZCB
Which of the following is a requirement for operating a banking company in India?
Signup and view all the answers
A banking company can invest in unrated non-SLR securities without any restrictions.
Signup and view all the answers
What is the cap for banks investing in liquid/short-term debt schemes of mutual funds?
Signup and view all the answers
Which of the following statements is true regarding the commission on shares issued by a banking company?
Signup and view all the answers
The Central Government may suspend the operation of the Banking Regulation Act for a period not exceeding ______.
Signup and view all the answers
Which of the following instruments are included in the money market?
Signup and view all the answers
What is the maximum maturity period for instruments in the money market?
Signup and view all the answers
The minimum denomination of a Certificate of Deposit is ₹______.
Signup and view all the answers
Call Money refers to borrowing or lending in secured funds.
Signup and view all the answers
What is the minimum net worth required for a body corporate to issue Commercial Paper?
Signup and view all the answers
What is the interest rate determination method in the Call, Notice, and Term Money Markets?
Signup and view all the answers
Certificates of Deposit shall be issued only in ______ form.
Signup and view all the answers
Which of the following is a requirement for Co-operative Banks in the Call, Notice and Term Money Markets?
Signup and view all the answers
The buyback of Commercial Paper can be made only after seven days from the date of issue.
Signup and view all the answers
What is the rating required for the issuance of Commercial Paper and Non-Convertible Debentures?
Signup and view all the answers
Which of the following statements about the investment policy of banks is true?
Signup and view all the answers
What must a banking company do within thirty days if it is aggrieved by the Reserve Bank's decision to cancel its license?
Signup and view all the answers
RBI has made it mandatory for banks to obtain prior permission to open new branches.
Signup and view all the answers
What is the minimum Statutory Liquidity Ratio (SLR) that banks are required to maintain?
Signup and view all the answers
How often must banking companies submit a return of unclaimed deposits?
Signup and view all the answers
The financial statements of every banking company are subjected to ______.
Signup and view all the answers
What is the maximum period the Reserve Bank may supersede the Board of Directors of a banking company?
Signup and view all the answers
What is the current interest rate specified for unclaimed deposits by banks?
Signup and view all the answers
Co-operative banks are exempt from several provisions of the Banking Regulation Act 1949.
Signup and view all the answers
What is the new definition of a fortnight as per the Bill?
Signup and view all the answers
RBI can now allow individuals to appoint up to ______ nominees for deposits.
Signup and view all the answers
What is the new threshold for substantial interest in a company as per the Bill?
Signup and view all the answers
The Banking Laws (Amendment) Bill, 2024 was introduced in which month and year?
Signup and view all the answers
What is required before opening any new bank branch?
Signup and view all the answers
What is the minimum Statutory Liquidity Ratio (SLR) that banks must maintain?
Signup and view all the answers
Banks are required to submit a return of unclaimed deposits annually.
Signup and view all the answers
Within how many days should banks remit unclaimed deposits to the RBI?
Signup and view all the answers
What happens if the financial statements are not audited?
Signup and view all the answers
What is the maximum duration the RBI can supersede a Board of Directors?
Signup and view all the answers
What is the maximum period a bank's Board of Directors can be superseded?
Signup and view all the answers
What is the requirement regarding the appointment of nominees for bank deposits?
Signup and view all the answers
The Banking Regulation (Amendment) Act, 2020 exempts co-operative banks from all provisions.
Signup and view all the answers
What is the new definition of 'fortnight' as mandated by the Bill?
Signup and view all the answers
Which of the following operations can involve sales to the RBI? (Select all that apply)
Signup and view all the answers
The fair value for quoted securities is based on prices declared by Financial Benchmarks India Private Ltd. (FBIL).
Signup and view all the answers
What is the maximum period for which the Central Government may suspend the operation of any provisions of the Banking Regulation Act?
Signup and view all the answers
The carrying amount of a bank's investment in unlisted non-SLR securities shall not exceed _____ of the carrying amount of its total investment.
Signup and view all the answers
When can a bank invest in unrated non-SLR securities?
Signup and view all the answers
Which of the following is NOT a requirement for a banking company according to Section 11?
Signup and view all the answers
A bank's board of directors must have at least 51% members with special knowledge in relevant fields.
Signup and view all the answers
What percentage of profits must a banking company transfer to a reserve fund before declaring dividends?
Signup and view all the answers
The ratio of Authorized, Subscribed, and Paid-up capital must be a minimum of _____:2:1.
Signup and view all the answers
Match the following definitions with their correct terms:
Signup and view all the answers
What is meant by Call Money?
Signup and view all the answers
What is the tenor duration for Notice Money?
Signup and view all the answers
What is Term Money?
Signup and view all the answers
Which entities are eligible participants in the Call, Notice, and Term Money Markets?
Signup and view all the answers
The Prudential limits for outstanding borrowing transactions are decided by the participants with the approval of their ______.
Signup and view all the answers
What is a Certificate of Deposit (CD)?
Signup and view all the answers
Who can issue Certificates of Deposit?
Signup and view all the answers
What is the minimum denomination for issuing a Certificate of Deposit?
Signup and view all the answers
Loans against CDs are allowed unless specifically permitted by the Reserve Bank.
Signup and view all the answers
What is Commercial Paper (CP)?
Signup and view all the answers
Who is eligible to invest in Commercial Papers and Non-Convertible Debentures (NCDs)?
Signup and view all the answers
What is the minimum net worth requirement for entities issuing Commercial Paper?
Signup and view all the answers
The minimum credit rating for issuance of CPs and NCDs is 'A3'.
Signup and view all the answers
Initially, all investments shall be measured at ______.
Signup and view all the answers
What classification does 'Held to Maturity (HTM)' represent?
Signup and view all the answers
The category of an investment can be changed without Board approval.
Signup and view all the answers
Study Notes
Money Market Instruments
- The money market deals with short-term financial assets, usually under one year maturity.
- Key instruments include Call Money, Notice Money, Commercial Paper, Certificates of Deposit, and Non-Convertible Debentures.
Call Money, Notice Money & Term Money
- Call Money: Unsecured loans borrowed/lent overnight.
- Notice Money: Unsecured loans for tenors of up to 14 days, including overnight.
- Term Money: Unsecured loans for periods exceeding 14 days, up to one year.
Eligible Participants
- Scheduled Commercial Banks, Payment Banks, Small Finance Banks, Regional Rural Banks, State Co-operative Banks, and Primary Dealers.
Prudential Limits
- Limits for lending in Call, Notice, and Term Money are determined with Board approval within RBI's regulatory framework.
- Scheduled Commercial Banks set internal board limits for outstanding lending.
- Small Finance Banks: Maximum 100% of capital funds for Call/Notice Money; Term Money based on internal limits.
- Payment and Regional Rural Banks: 100% of capital funds for all types of money.
- Co-operative Banks: 2% of total deposits from the previous financial year for all types of money.
- Primary Dealers: 225% of Net Owned Fund (NOF) for Call/Notice Money and Term Money.
Interest Rates
- Interest rates in the Call, Notice, and Term Money Markets are determined freely by participants.
Certificate of Deposit (CD)
- CDs: Negotiable, unsecured instruments from banks for deposit funds with maturity up to one year.
- Eligible issuers include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, and certain All India Financial Institutions.
- Minimum denomination of CDs is ₹5 lakh, issued in dematerialised form.
- Tenor of CDs: Minimum seven days, maximum one year.
- CDs can be issued at a discount, fixed or floating rates.
Commercial Paper (CP) & Non-Convertible Debentures (NCD)
- CPs: Unsecured promissory notes issued by corporations with a minimum net worth of ₹100 crore.
- NCDs: Unsecured debt instruments with minimum tenure of 90 days, maximum one year.
- Both CPs and NCDs can be traded in OTC markets and require a minimum investment of ₹5 lakh.
- Minimum credit rating for issuance: 'A3'.
Trading and Buyback Rules
- CDs and CPs can be traded in secondary markets with settlement cycles of T+0 or T+1.
- CPs can be bought back after seven days, NCDs after ninety days, both at market price.
Investment Portfolio Classification for Commercial Banks
- RBI's updated guidelines require a comprehensive investment policy for banks, including investment criteria and risk assessment.
- Investments are classified into Held to Maturity (HTM), Available for Sale (AFS), and Fair Value through Profit and Loss (FVTPL).
- HTM: Held until maturity without marking to market.
- AFS: Securities sold or held to collect cash flows.
- FVTPL: Fair valued with net gains/losses in profit and loss accounts.
Recognition and Measurement of Investments
- Initial recognition at fair value; acquisition cost presumed fair unless materially different.
- Securities in HTM are carried at cost; AFS fair valued quarterly; FVTPL fair valued regularly.
- Investments in subsidiaries held at cost, evaluated for impairment quarterly.
Reclassification and Fair Value
- Reclassification of investments requires Board and RBI approval; limits on HTM sales.
- Fair value determined by market prices or declared rates, with valuation methods for unquoted securities.
Summary
- RBI regulations modernize banking investment practices, align with global standards, and emphasize rigorous classification and measurement for asset management.### Investment Valuation Guidelines
- Special securities issued by the Government of India, lacking SLR status, valued at a spread of 25 basis points above corresponding Central Government securities yields of equivalent maturity.
- Zero Coupon Bonds (ZCBs) marked to market based on present value; fair value compared to carrying cost for gain/loss determination.
- Preference shares valued based on trading price if traded on an exchange within 15 days prior to valuation date. Investments in project finance's preference shares valued at par for two years post-production or five years post-subscription, whichever is earlier.
- Equity shares without current quotations valued at break-up value from the latest audited balance sheet not older than 18 months; otherwise, valued at ₹1 per company.
- Un-quoted Mutual Fund (MF) units valued at the latest declared repurchase price; if unavailable, valued at NAV or cost during lock-in periods.
- Commercial paper valued at carrying cost.
Operational Guidelines for Banking Investments
- Transactions in government securities must occur via Subsidiary General Ledger (SGL) or Constituent Subsidiary General Ledger (CSGL) accounts under the Delivery Versus Payment (DvP) System.
- Investment in unlisted non-SLR securities capped at 10% of the previous financial year's carrying amount in non-SLR securities; hardship exemptions apply for securities proposed to list within a year and securitisation notes for infrastructure.
- Banks prohibited from investing in non-SLR securities with original maturities of less than one year, except for specific instruments like Commercial Paper or Certificates of Deposit.
- Unrated non-SLR securities investment is generally prohibited, except for infrastructure-related companies within the 10% ceiling.
- Total investments in short-term debt schemes of mutual funds limited to 10% of net worth.
- Mandatory half-yearly portfolio reviews to be presented to bank boards within two months.
Banking Regulation Act Highlights
- The Banking Regulation (Amendment) Act extends to all banking companies, excluding certain cooperative banks.
- Central Government can suspend provisions of the Act for up to 60 days; in emergencies, the RBI may also suspend for up to 30 days.
- Approved security includes securities from Central or State Governments as specified by RBI.
- Banking defined as accepting deposits for lending or investments repayable on demand.
- Maximum limit on voting rights for shareholders set at 10%, with the Reserve Bank able to increase it to 26%.
- Banking companies must allocate a minimum of 20% of profits to reserves before dividend distribution; this allocation has been increased to 25% by the RBI.
- Capital requirement details vary by bank type, with minimum paid-up capital for commercial banks set at ₹5 billion.
Loan Restrictions and RBI Powers
- Banks cannot grant loans secured by their own shares or without RBI approval to directors or firms connected to directors.
- RBI directs banks on selective credit control, influencing lending policies and interest rates.
- Banks must maintain a minimum Statutory Liquidity Ratio (SLR) as determined by RBI.
- Regular audits and inspections conducted by RBI to ensure compliance; banks must submit balance sheets and P&L statements as per regulatory standards.
- Power to reprimand or remove managerial personnel rests with RBI, along with the authority to appoint additional directors and intervene in transactions detrimental to public interest.### Supersession of Board of Directors
- Reserve Bank can supersede the Board of Directors of banking companies for up to six months, extendable to a maximum of twelve months, if it serves public interest or protects depositors' interests.
Amalgamation of Banking Companies
- A scheme for the amalgamation needs approval from a General Body with a two-thirds majority and requires subsequent approval from the Reserve Bank of India (RBI).
Preservation of Records
- The Central Government, in consultation with RBI, is authorized to frame rules governing the preservation of records and books of accounts.
Return of Paid Instruments
- Customers must preserve paid cheques for eight years after collecting them from banks, with banks required to maintain true copies.
Nomination Facilities
- Provisions exist for nominations in deposit accounts, safe custody articles, and lockers, ensuring account holders can designate successors.
Restrictions on Deposits
- Section 49A restricts the acceptance of deposits by entities other than banks or RBI that are withdrawable by cheque.
Powers of Central Government
- The Central Government can create rules regarding banking operations after consulting with the RBI, which must be published in the Official Gazette.
Banking Regulation (Amendment) Act, 2020
- Effective June 26, 2020, this Act primarily targets the regulation of co-operative banks, aligning them more closely with commercial banks while exempting primary agricultural credit societies.
Co-operative Banks
- Co-operative banks can raise capital from the public with RBI approval and face stricter regulations concerning the appointment of Chairs and Board membership.
Chairman Eligibility Criteria
- New regulations mandate that the chairman of co-operative banks must meet certain "fit and proper" criteria, with RBI empowered to remove unsuitable Chairs.
Supersession of Co-operative Bank Boards
- RBI can supersede the Board of Directors of co-operative banks in cooperation with state governments, which can last up to five years for multi-state co-operative banks.
Audit and Winding Up
- Audits for co-operative banks will align with commercial banks, applying faster winding-up proceedings.
Reconstruction or Amalgamation Absent Moratorium
- RBI can initiate bank reconstruction or amalgamation plans without imposing a moratorium, allowing for a more flexible response to banking crises.
Banking Laws (Amendment) Bill, 2024
- This bill aims to amend various banking laws, including significant changes to Cash Reserve Ratio (CRR) calculations, affecting both scheduled and non-scheduled banks.
Changes Related to CRR
- The definition of a "fortnight" for CRR maintenance has been modified, shifting to specific date ranges, thereby affecting liquidity management for banks.
Directors' Tenure Extension
- The maximum consecutive term for co-operative bank directors is proposed to increase from eight to ten years.
Prohibition on Common Directors
- Restrictions are placed on directors serving on multiple bank boards, with exceptions for central co-operative bank directors joining state cooperative banks.
Substantial Interest Threshold
- The threshold for holding 'substantial interest' in a bank has been increased from five lakh to two crore rupees, which may be subject to changes by the government.
Nominee Appointment Flexibility
- Depositors can now appoint up to four nominees for accounts, with clear guidelines for simultaneous and successive nominations.
Settlement of Unclaimed Amounts
- Funds that remain unpaid or unclaimed for seven years are to be transferred to the Investor Education and Protection Fund (IEPF), broadening the range of applicable funds for transfer.
Auditor Remuneration
- The bill empowers banks to determine the remuneration for their auditors, shifting the responsibility from RBI to individual banks.
Money Market Instruments
- The money market deals with short-term financial assets, usually under one year maturity.
- Key instruments include Call Money, Notice Money, Commercial Paper, Certificates of Deposit, and Non-Convertible Debentures.
Call Money, Notice Money & Term Money
- Call Money: Unsecured loans borrowed/lent overnight.
- Notice Money: Unsecured loans for tenors of up to 14 days, including overnight.
- Term Money: Unsecured loans for periods exceeding 14 days, up to one year.
Eligible Participants
- Scheduled Commercial Banks, Payment Banks, Small Finance Banks, Regional Rural Banks, State Co-operative Banks, and Primary Dealers.
Prudential Limits
- Limits for lending in Call, Notice, and Term Money are determined with Board approval within RBI's regulatory framework.
- Scheduled Commercial Banks set internal board limits for outstanding lending.
- Small Finance Banks: Maximum 100% of capital funds for Call/Notice Money; Term Money based on internal limits.
- Payment and Regional Rural Banks: 100% of capital funds for all types of money.
- Co-operative Banks: 2% of total deposits from the previous financial year for all types of money.
- Primary Dealers: 225% of Net Owned Fund (NOF) for Call/Notice Money and Term Money.
Interest Rates
- Interest rates in the Call, Notice, and Term Money Markets are determined freely by participants.
Certificate of Deposit (CD)
- CDs: Negotiable, unsecured instruments from banks for deposit funds with maturity up to one year.
- Eligible issuers include Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, and certain All India Financial Institutions.
- Minimum denomination of CDs is ₹5 lakh, issued in dematerialised form.
- Tenor of CDs: Minimum seven days, maximum one year.
- CDs can be issued at a discount, fixed or floating rates.
Commercial Paper (CP) & Non-Convertible Debentures (NCD)
- CPs: Unsecured promissory notes issued by corporations with a minimum net worth of ₹100 crore.
- NCDs: Unsecured debt instruments with minimum tenure of 90 days, maximum one year.
- Both CPs and NCDs can be traded in OTC markets and require a minimum investment of ₹5 lakh.
- Minimum credit rating for issuance: 'A3'.
Trading and Buyback Rules
- CDs and CPs can be traded in secondary markets with settlement cycles of T+0 or T+1.
- CPs can be bought back after seven days, NCDs after ninety days, both at market price.
Investment Portfolio Classification for Commercial Banks
- RBI's updated guidelines require a comprehensive investment policy for banks, including investment criteria and risk assessment.
- Investments are classified into Held to Maturity (HTM), Available for Sale (AFS), and Fair Value through Profit and Loss (FVTPL).
- HTM: Held until maturity without marking to market.
- AFS: Securities sold or held to collect cash flows.
- FVTPL: Fair valued with net gains/losses in profit and loss accounts.
Recognition and Measurement of Investments
- Initial recognition at fair value; acquisition cost presumed fair unless materially different.
- Securities in HTM are carried at cost; AFS fair valued quarterly; FVTPL fair valued regularly.
- Investments in subsidiaries held at cost, evaluated for impairment quarterly.
Reclassification and Fair Value
- Reclassification of investments requires Board and RBI approval; limits on HTM sales.
- Fair value determined by market prices or declared rates, with valuation methods for unquoted securities.
Summary
- RBI regulations modernize banking investment practices, align with global standards, and emphasize rigorous classification and measurement for asset management.### Investment Valuation Guidelines
- Special securities issued by the Government of India, lacking SLR status, valued at a spread of 25 basis points above corresponding Central Government securities yields of equivalent maturity.
- Zero Coupon Bonds (ZCBs) marked to market based on present value; fair value compared to carrying cost for gain/loss determination.
- Preference shares valued based on trading price if traded on an exchange within 15 days prior to valuation date. Investments in project finance's preference shares valued at par for two years post-production or five years post-subscription, whichever is earlier.
- Equity shares without current quotations valued at break-up value from the latest audited balance sheet not older than 18 months; otherwise, valued at ₹1 per company.
- Un-quoted Mutual Fund (MF) units valued at the latest declared repurchase price; if unavailable, valued at NAV or cost during lock-in periods.
- Commercial paper valued at carrying cost.
Operational Guidelines for Banking Investments
- Transactions in government securities must occur via Subsidiary General Ledger (SGL) or Constituent Subsidiary General Ledger (CSGL) accounts under the Delivery Versus Payment (DvP) System.
- Investment in unlisted non-SLR securities capped at 10% of the previous financial year's carrying amount in non-SLR securities; hardship exemptions apply for securities proposed to list within a year and securitisation notes for infrastructure.
- Banks prohibited from investing in non-SLR securities with original maturities of less than one year, except for specific instruments like Commercial Paper or Certificates of Deposit.
- Unrated non-SLR securities investment is generally prohibited, except for infrastructure-related companies within the 10% ceiling.
- Total investments in short-term debt schemes of mutual funds limited to 10% of net worth.
- Mandatory half-yearly portfolio reviews to be presented to bank boards within two months.
Banking Regulation Act Highlights
- The Banking Regulation (Amendment) Act extends to all banking companies, excluding certain cooperative banks.
- Central Government can suspend provisions of the Act for up to 60 days; in emergencies, the RBI may also suspend for up to 30 days.
- Approved security includes securities from Central or State Governments as specified by RBI.
- Banking defined as accepting deposits for lending or investments repayable on demand.
- Maximum limit on voting rights for shareholders set at 10%, with the Reserve Bank able to increase it to 26%.
- Banking companies must allocate a minimum of 20% of profits to reserves before dividend distribution; this allocation has been increased to 25% by the RBI.
- Capital requirement details vary by bank type, with minimum paid-up capital for commercial banks set at ₹5 billion.
Loan Restrictions and RBI Powers
- Banks cannot grant loans secured by their own shares or without RBI approval to directors or firms connected to directors.
- RBI directs banks on selective credit control, influencing lending policies and interest rates.
- Banks must maintain a minimum Statutory Liquidity Ratio (SLR) as determined by RBI.
- Regular audits and inspections conducted by RBI to ensure compliance; banks must submit balance sheets and P&L statements as per regulatory standards.
- Power to reprimand or remove managerial personnel rests with RBI, along with the authority to appoint additional directors and intervene in transactions detrimental to public interest.### Supersession of Board of Directors
- Reserve Bank can supersede the Board of Directors of banking companies for up to six months, extendable to a maximum of twelve months, if it serves public interest or protects depositors' interests.
Amalgamation of Banking Companies
- A scheme for the amalgamation needs approval from a General Body with a two-thirds majority and requires subsequent approval from the Reserve Bank of India (RBI).
Preservation of Records
- The Central Government, in consultation with RBI, is authorized to frame rules governing the preservation of records and books of accounts.
Return of Paid Instruments
- Customers must preserve paid cheques for eight years after collecting them from banks, with banks required to maintain true copies.
Nomination Facilities
- Provisions exist for nominations in deposit accounts, safe custody articles, and lockers, ensuring account holders can designate successors.
Restrictions on Deposits
- Section 49A restricts the acceptance of deposits by entities other than banks or RBI that are withdrawable by cheque.
Powers of Central Government
- The Central Government can create rules regarding banking operations after consulting with the RBI, which must be published in the Official Gazette.
Banking Regulation (Amendment) Act, 2020
- Effective June 26, 2020, this Act primarily targets the regulation of co-operative banks, aligning them more closely with commercial banks while exempting primary agricultural credit societies.
Co-operative Banks
- Co-operative banks can raise capital from the public with RBI approval and face stricter regulations concerning the appointment of Chairs and Board membership.
Chairman Eligibility Criteria
- New regulations mandate that the chairman of co-operative banks must meet certain "fit and proper" criteria, with RBI empowered to remove unsuitable Chairs.
Supersession of Co-operative Bank Boards
- RBI can supersede the Board of Directors of co-operative banks in cooperation with state governments, which can last up to five years for multi-state co-operative banks.
Audit and Winding Up
- Audits for co-operative banks will align with commercial banks, applying faster winding-up proceedings.
Reconstruction or Amalgamation Absent Moratorium
- RBI can initiate bank reconstruction or amalgamation plans without imposing a moratorium, allowing for a more flexible response to banking crises.
Banking Laws (Amendment) Bill, 2024
- This bill aims to amend various banking laws, including significant changes to Cash Reserve Ratio (CRR) calculations, affecting both scheduled and non-scheduled banks.
Changes Related to CRR
- The definition of a "fortnight" for CRR maintenance has been modified, shifting to specific date ranges, thereby affecting liquidity management for banks.
Directors' Tenure Extension
- The maximum consecutive term for co-operative bank directors is proposed to increase from eight to ten years.
Prohibition on Common Directors
- Restrictions are placed on directors serving on multiple bank boards, with exceptions for central co-operative bank directors joining state cooperative banks.
Substantial Interest Threshold
- The threshold for holding 'substantial interest' in a bank has been increased from five lakh to two crore rupees, which may be subject to changes by the government.
Nominee Appointment Flexibility
- Depositors can now appoint up to four nominees for accounts, with clear guidelines for simultaneous and successive nominations.
Settlement of Unclaimed Amounts
- Funds that remain unpaid or unclaimed for seven years are to be transferred to the Investor Education and Protection Fund (IEPF), broadening the range of applicable funds for transfer.
Auditor Remuneration
- The bill empowers banks to determine the remuneration for their auditors, shifting the responsibility from RBI to individual banks.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the key concepts of money market instruments, specifically focusing on Call Money, Notice Money, and Term Money. Understand the characteristics of short-term financial assets and their importance in the financial system. Test your knowledge on various money market instruments like Commercial Paper and Certificates of Deposit.