Question
Which of the following is not a money market
instrument?ÂSolution
Term "Money Market" refers to the market for short-term deployment of funds. Money market instruments have a maturity period of less than one year. The most active part of the money market is the market for overnight call and term money between banks and institutions and repo transactions. Following instruments are money market instruments: Certificate of Deposit (CD) Commercial Paper (CP) Inter Bank Participation Certificates Inter Bank term Money Treasury Bills Bill Rediscounting Call/ Notice/ Term Money
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