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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market

Which of the following is a feature that distinguishes a money market instrument from a capital market instrument in India?

Money market instruments are short-term debt instruments with an original maturity of up to one year, such as treasury bills, commercial paper and certificates of deposit. Capital market instruments have longer tenures or are equity, which is the key distinction.

  1. AMoney market instruments have an original maturity of up to one yearCorrect
  2. BMoney market instruments always carry equity ownership rights
  3. CMoney market instruments have a maturity of over ten years
  4. DMoney market instruments can be issued only by SEBI

Explanation

The money market deals in short-term debt instruments such as treasury bills, commercial paper and certificates of deposit with maturity up to one year. Capital market instruments are longer term. Money market instruments do not confer ownership rights and are not issued by SEBI.

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