NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which of the following instruments is a money market instrument rather than a capital market instrument?
A 91-day Treasury bill is a money market instrument because money market instruments mature within one year. Equity shares, long-dated corporate bonds and 15-year government securities are long-term instruments and therefore belong to the capital market.
- AEquity share of a listed company
- BTreasury bill with 91-day maturityCorrect
- CCorporate bond maturing in 10 years
- DGovernment security maturing in 15 years
Explanation
Money market instruments have a maturity of up to one year. A 91-day Treasury bill fits this. Equity shares, 10-year bonds and 15-year G-secs are long-term capital market instruments.
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