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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to the Indian Capital Market

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

The money market deals in short-term debt instruments with maturity of up to one year, such as treasury bills and commercial paper, while the capital market deals in long-term securities such as equity shares and debentures.

  1. AMoney market instruments generally have maturity up to one year, while capital market instruments are long-termCorrect
  2. BMoney market deals only in equity shares
  3. CCapital market instruments always mature within 91 days
  4. DMoney market instruments are issued only by mutual funds

Explanation

The money market handles short-term instruments with maturity up to one year, such as treasury bills and commercial paper. The capital market deals in long-term securities like shares and bonds. The other options misstate instruments or maturities.

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