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      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

      AsĀ  moneyĀ  became aĀ  commodity, theĀ  money market Ā  became a component of theĀ  financial marketsĀ  for assets involved in short-termĀ  borrowing,Ā  lending, buying and selling with original maturities of one year or less. Trading in money markets is doneĀ  over the counterĀ  and isĀ  wholesale. There are several money market instruments, includingĀ  treasury bills,Ā  commercial paper,Ā  bankers' acceptances,Ā  deposits,Ā  certificates of deposit,Ā  bills of exchange,Ā  repurchase agreements, federal funds, and short-livedĀ  mortgage-Ā  andĀ  asset-backed securities. The instruments bear differing maturities, currencies, credit risks, and structure and thus may be used to distribute exposure.

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