NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market
Which of the following instruments is classified as 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 long-dated government securities are capital market instruments since they are perpetual or have maturities above one year.
- AEquity share of a listed company
- BTreasury bill with 91 days 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 corporate bonds and 15-year government securities are long-term or perpetual and belong to the capital market.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to the Securities Market shows your real accuracy, how long you take and where you lose marks.
More Introduction to the Securities Market questions
- Which of the following best describes the role of SEBI in relation to the securities market?
- A SEBI-registered stock broker wants to operate on the cash segment of a recognised exchange. Which requirement applies to it under the Indi…
- Which of the following is classified as a primary market activity in the Indian securities market?
- In the Indian securities market, which entity is the statutory regulator that was established under the SEBI Act to protect investor interes…
- Which of the following is a money market instrument, as distinct from a capital market instrument?
- Which of the following is a primary market activity rather than a secondary market activity?