Home › JAIIB › IE&IFS › Unit 30

JAIIB · Indian Economy & Indian Financial System · Module D — Financial Products and Services

JAIIB IE&IFS Unit 30 — Money 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 30 — Money Markets (Module D — Financial Products and Services). The Mock Centre holds 58 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 D58 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Money market = instruments ≤1 year; high liquidity/low risk; OTC (not exchange-floor); RBI-regulated; the channel for monetary-policy transmission.
  2. Tenor ladder: CALL = 1 day; NOTICE = 2–14 days; TERM = 15 days–1 year; all UNCOLLATERALISED (clean); reported on NDS-CALL; prudential limits as % of capital funds/NDTL; participants (borrow AND lend): SCBs + cooperative banks + PDs.
  3. T-bills: Central Government via RBI (states issue SDLs); 91/182/364-day; discount-to-par zero-coupon; min ₹10,000 and multiples; E-Kuber auctions (competitive + non-competitive bids).

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
The money market primarily helps in:
Why (b): The money market primarily provides LIQUIDITY AND THE CHANNEL FOR MONETARY-POLICY IMPLEMENTATION — the short-end plumbing where repo changes bite first.
Question 2 of 5
Overnight inter-bank money is:
Why (c): Overnight inter-bank money is CALL MONEY — one-day clean lending between banks, no collateral.
Question 3 of 5
Treasury Bills are issued by:
Why (b): Treasury Bills are issued by THE CENTRAL GOVERNMENT, with RBI as its agent — states issue SDLs, never T-bills.
Question 4 of 5
A money-market instrument among these:
Why (c): The money-market instrument here is the 91-DAY TREASURY BILL — short sovereign paper.
Question 5 of 5
The money market's regulator and its policy anchor are:
Why (b): RBI supervises the money market as monetary policy's fulcrum — liquidity operations steer overnight rates toward repo.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Call moneyNotice money1 day vs 2–14 days
Notice moneyTerm money2–14 days vs 15 days–1 year
Practise all 58 questions on Unit 30. 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.
Take the free test Open the free demo

← Unit 29: Financial Markets · Unit 31: Capital Markets and Stock Exchanges → · All IE&IFS units · JAIIB 2026 guide

Related reading

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.