NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which of the following statements about the money market in India is correct?
The money market deals in short-term debt instruments with original maturity of up to one year, such as treasury bills, commercial paper, certificates of deposit and call money. Equity and long-term securities belong to the capital market, so the other statements are incorrect.
- AIt deals in instruments with original maturity of up to one yearCorrect
- BIt deals only in equity shares of unlisted companies
- CIt deals in perpetual securities with no maturity
- DIt is the market where only derivatives are traded
Explanation
The money market is the market for short-term debt instruments with original maturity up to one year, such as treasury bills, commercial paper and certificates of deposit. Equity shares and perpetual securities are capital market matters. Derivatives are a separate segment.
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