NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which of the following is a money market instrument rather than a capital market instrument?
A 91-day treasury bill is a money market instrument because money market securities have maturities of up to one year. Equity shares, ten-year corporate bonds and fifteen-year government securities are long-term and belong to the capital market.
- AEquity share of a listed company
- BTreasury bill with 91-day maturityCorrect
- CCorporate bond maturing in 10 years
- DGovernment security maturing in 15 years
Explanation
The money market deals in short-term instruments of up to one year maturity, such as treasury bills. Equity shares, long-dated bonds and long-dated government securities are capital market instruments.
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