CS Executive · Capital Market and Securities Laws · Basics of Capital 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 instruments have a maturity of up to one year. Ten-year government securities, equity shares and a fifteen-year redeemable preference share are long-term instruments that belong to the capital market.
- ATen-year government security
- BEquity share of a listed company
- CTreasury bill with a 91-day maturityCorrect
- DRedeemable preference share maturing in 15 years
Explanation
Money market instruments are short-term, with maturity up to one year; a 91-day Treasury bill qualifies. Ten-year government securities, equity shares and long-dated preference shares are long-term or perpetual and belong to the capital market.
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