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Question : Which market is primarily used for raising short-term funds to meet working capital requirements?

Option 1: Money market
 

Option 2: Capital market
 

Option 3: Forex market

 

Option 4: Real estate market


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Money market
 


Solution : The correct answer is (a) Money market.

The money market is primarily used for raising short-term funds to meet working capital requirements. The money market is a segment of the financial market where short-term borrowing and lending of funds occur. It deals with highly liquid and low-risk instruments with short maturities, typically one year or less.The money market provides an efficient platform for short-term financing as it offers high liquidity, low transaction costs, and competitive interest rates for borrowers with good creditworthiness.

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