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.
- ATreasury billsCorrect
- BEquity shares
- CCorporate bonds maturing in 10 years
- 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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