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      Question

      In the Indian financial system, which of the following

      markets is primarily used for short-term borrowing and lending, typically involving instruments with maturities of one year or less?
      A Capital Market Correct Answer Incorrect Answer
      B Forex Market Correct Answer Incorrect Answer
      C Money Market Correct Answer Incorrect Answer
      D Commodity Market Correct Answer Incorrect Answer
      E Derivatives Market Correct Answer Incorrect Answer

      Solution

      The money market deals with highly liquid and short-term instruments like Treasury Bills and Commercial Papers. It helps institutions manage short-term funding and liquidity.

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