Question

    Market in which securities with less than one year maturity are traded is known as?

    A Money market Correct Answer Incorrect Answer
    B Securities market Correct Answer Incorrect Answer
    C Capital market Correct Answer Incorrect Answer
    D Primary market Correct Answer Incorrect Answer
    E Trading market Correct Answer Incorrect Answer

    Solution

    The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year.

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