Question
Which of the following instruments is not a part of
money market?Solution
A derivative is a financial instrument that derives its value from an underlying asset. Derivatives can be used for a variety of purposes, including managing risk, speculating on future price movements, and hedging against potential losses. Derivatives are not considered traditional money market instruments such as Treasury bills, commercial paper, and certificates of deposit, which are short-term, low-risk debt securities that are typically issued by governments, corporations, and financial institutions to raise funds.
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