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JAIIB IE&IFS Unit 29 — Financial Markets: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 29 — Financial Markets (Module D — Financial Products and Services). The Mock Centre holds 55 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module D55 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Financial market = venue for financial products; system = institutions + products + markets; low transaction costs; transformed post-1991 (free pricing + transparency; earlier controls/barriers/ high costs).
  2. Eight segments: money, credit, debt, capital, forex, derivatives, insurance, mutual funds (agri-commodities is NOT one).
  3. Placement: CDs = money market; SDLs = debt market; equity ∉ money market; credit market = short/medium/long-term; corporate bonds 5–10 years.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
A FINANCIAL MARKET is:
Why (b): A FINANCIAL MARKET is WHERE FINANCIAL PRODUCTS TRADE — claims like deposits, securities and forex changing hands.
Question 2 of 5
Transaction costs in financial markets are:
Why (b): Transaction costs in financial markets are LOW — information and competition compress them.
Question 3 of 5
NOT a financial-market segment:
Why (a): The AGRI COMMODITIES market is NOT a financial-market segment — commodities are goods, not financial claims.
Question 4 of 5
Financial-market functions include:
Why (d): Financial-market functions include ALL of them: capital formation, liquidity and price determination — plus risk sharing, easy access and cost reduction.
Question 5 of 5
India's insurance market broadly splits into:
Why (b): India's insurance market broadly splits into LIFE AND NON-LIFE — the classic two-branch division.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Money marketCapital marketShort-term papers vs long-term equity/debt
CDSDLMoney-market vs debt-market instruments
Practise all 55 questions on Unit 29. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 28: Reforms and Developments in the Banking Sector · Unit 30: Money Markets → · All IE&IFS units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.