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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments

Which of the following instruments is traded in the money market segment of the Indian financial markets?

Treasury bills are money market instruments because they are short-term government securities with maturity of up to one year. Equity shares and ten-year bonds are capital market instruments, while index futures are derivative contracts.

  1. ATreasury billsCorrect
  2. BEquity shares
  3. CCorporate bonds maturing in 10 years
  4. DEquity index futures

Explanation

The money market deals in short-term instruments with maturity up to one year, such as Treasury bills, commercial paper and certificates of deposit. Equity shares and long-term bonds belong to the capital market, and index futures are derivatives.

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