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    Question

    Which of the following financial instruments are traded

    in the Money Market?         I.            Cash management bills       II.            Sovereign gold bonds     III.            Collateralized borrowing and lending obligations     IV.            Certificate of deposits       V.            Commercial papers
    A I, III, IV and V only Correct Answer Incorrect Answer
    B II, III, IV and V only Correct Answer Incorrect Answer
    C I, III, and V only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    The money Market is a segment of the financial market in which financial instruments with high liquidity and very short maturities (less than one year) are traded. Money market instruments are basically debt instruments. These markets are less risky. But sovereign Gold Bonds is not associated with “Money market”.

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