NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which of the following instruments is traded in the money market of India?
Treasury bills are money market instruments because they are short-term government securities with maturity up to one year. Equity shares, long-term debentures and equity fund units are capital market products with longer or indefinite horizons, so they are not money market instruments.
- ATreasury billsCorrect
- BEquity shares
- CLong-term corporate debentures
- DEquity mutual fund units
Explanation
The money market deals in short-term instruments with maturity up to one year, such as treasury bills, commercial paper, certificates of deposit and call money. Equity shares and long-term debentures belong to the capital market. Equity mutual fund units are also not money market instruments.
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