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      Question

      Match the market with its most appropriate dominant

      instrument
      A A–1, B–2, C–3, D–4 Correct Answer Incorrect Answer
      B A–2, B–1, C–4, D–3 Correct Answer Incorrect Answer
      C A–1, B–3, C–2, D–4 Correct Answer Incorrect Answer
      D A–2, B–3, C–4, D–1 Correct Answer Incorrect Answer
      E A–1, B–2, C–4, D–3 Correct Answer Incorrect Answer

      Solution

      • Commercial paper are money market instruments that are used by corporates to raise short term funds. • Forward Trade Agreements are forex market instruments used for hedging to lock in an exchange rate today for a transaction that will occur at a future date. • Debentures are debt instruments and are part of the bond market. They are used to raise debt money from the public, by the corporates. • Stock refers to Equity shares that are traded in the equity market.

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