NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market
Which statement about the money market is correct?
The money market deals in short-term instruments with maturity up to one year, such as treasury bills, commercial paper and certificates of deposit. Equity shares and long-term bonds belong to the capital market, not the money market.
- AIt deals mainly in equity shares with unlimited maturity
- BIt deals in short-term instruments with maturity up to one yearCorrect
- CIt deals only in long-term government bonds
- DIt is regulated solely by the stock exchanges
Explanation
The money market handles short-term debt instruments such as treasury bills, commercial paper and certificates of deposit, with maturity up to one year. Equity and long-term bonds belong to the capital market.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to the Securities Market shows your real accuracy, how long you take and where you lose marks.
More Introduction to the Securities Market questions
- Which of the following is a key function of a stock exchange in the secondary market in India?
- An investor buys shares through a broker who is a trading member only, not a clearing member. Which statement correctly describes how the tr…
- A broker's dealer explains to a new client that a rights issue differs from a public issue. Which statement is correct?
- An investor sells 100 shares on a Monday under the T+1 rolling settlement on the NSE cash segment, with no holidays in the week. The investo…
- Which of the following is a role of SEBI as the regulator of the securities market in India?
- Which of the following is a feature that distinguishes a money market instrument from a capital market instrument in India?