NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which statement about the money market in India is correct?
The money market deals in short-term debt instruments with original maturity up to one year, such as treasury bills, commercial paper, certificates of deposit and call money. Equity trading belongs to the capital market, and the money market is chiefly regulated by the RBI rather than exchanges.
- AIt deals in short-term instruments with original maturity up to one yearCorrect
- BIt deals mainly in equity shares of listed companies
- CIt is the market for instruments with maturity above ten years only
- DIt is regulated exclusively by the stock exchanges
Explanation
The money market covers short-term debt instruments such as treasury bills, commercial paper, certificates of deposit and call money, with original maturity up to one year. Equity shares belong to the capital market. The market is regulated mainly by the RBI, not by stock exchanges.
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