NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market
Which of the following is a money market instrument, as distinct from a capital market instrument?
A 91-day Treasury bill is a money market instrument because money market instruments have maturities up to one year. Equity shares, ten-year debentures and equity mutual fund units are capital market instruments as they relate to long-term funds.
- ATreasury bill with a 91-day maturityCorrect
- BEquity share of a listed company
- CLong-term corporate debenture of 10 years
- DEquity-oriented mutual fund unit
Explanation
The money market deals in short-term instruments with maturity up to one year, such as treasury bills. Equity shares, long-term debentures and equity mutual fund units belong to the capital market, which deals in long-term funds.
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