New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following are not the Money market

    instruments?
    A Treasury Bills Correct Answer Incorrect Answer
    B Mutual Funds Correct Answer Incorrect Answer
    C Commercial Papers Correct Answer Incorrect Answer
    D Certificate of Deposit Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    As  money  became a  commodity, the  money market   became a component of the  financial markets  for assets involved in short-term  borrowing,  lending, buying and selling with original maturities of one year or less. Trading in money markets is done  over the counter  and is  wholesale. There are several money market instruments, including  treasury bills,  commercial paper,  bankers' acceptances,  deposits,  certificates of deposit,  bills of exchange,  repurchase agreements, federal funds, and short-lived  mortgage-  and  asset-backed securities. The instruments bear differing maturities, currencies, credit risks, and structure and thus may be used to distribute exposure.

    Practice Next