Question : It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. Which of the following market has been highlighted in the given statement?
Option 1: Money market
Option 2: Capital market
Option 3: Primary market
Option 4: Secondary market
Correct Answer: Money market
Solution : Money market refers to market for short term funds which deals in monetary assets period of maturity is upto one year. Unsecured,short-term debt instruments that are highly liquid are issued and actively traded everyday in the money market.
Hence, option A is correct.
Question : Which of the following statement is incorrect for money market instruments?
Option 1: Money market instruments are highly liquid
Option 2: Instruments of money market are quite expensive
Option 3: Money market instruments are highly risky
Option 4: None of the above
Question : Which of the following statement is incorrect?
Option 2: Money market instruments are less risky
Option 3: Money market instruments are cheaper
Question : The instruments which have a maturity of less than one year are traded in which market?
Question : Which market is highlighted in the given statement? Statement: It refers to that market in which securities are sold for the first time for collecting long term capital.
Option 1: Primary market
Option 2: Secondary market
Option 3: Capital market
Option 4: Money market
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