NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which of the following instruments is traded in the Indian money market?
Treasury bills are traded in the money market. This market deals in short-term debt instruments with maturity up to one year, such as T-bills, commercial paper and certificates of deposit, whereas shares and long-term bonds belong to the capital market.
- AEquity shares
- BTreasury billsCorrect
- CCorporate bonds with 10-year maturity
- DEquity index futures
Explanation
The money market handles short-term instruments of up to one year, such as treasury bills, commercial paper, certificates of deposit and call money. Equity shares belong to the capital market, long-dated bonds are capital market debt, and index futures are derivatives.
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