NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market
Which of the following instruments is traded in the money market rather than the capital market?
A 91-day treasury bill is a money market instrument because money market securities have maturity of up to one year. Equity shares and 10-year corporate bonds belong to the capital market, while index futures are derivative contracts.
- AEquity shares of a listed company
- BTreasury bills with 91-day maturityCorrect
- CCorporate bonds maturing in 10 years
- DExchange traded index futures
Explanation
The money market deals in short-term instruments with maturity up to one year, such as treasury bills. Equity shares and long-dated bonds are capital market instruments, and index futures are derivatives.
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