NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments
Which of these is a money market instrument rather than a capital market instrument?
Commercial paper is a money market instrument because it is a short-term unsecured promissory note with maturity up to one year. Equity, preference shares and ten-year debentures are long-term capital market instruments.
- AEquity share
- BCommercial paperCorrect
- CDebenture with 10-year maturity
- DPreference share
Explanation
Money market instruments have original maturity up to one year, and commercial paper is an unsecured short-term instrument issued by companies. Equity shares, preference shares and long-dated debentures are capital market instruments.
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