Question

Which of the following is not a money market instrument?

A Treasury bills Correct Answer Incorrect Answer
B Commercial papers Correct Answer Incorrect Answer
C FD Correct Answer Incorrect Answer
D Certificate of deposits Correct Answer Incorrect Answer
E Call money Correct Answer Incorrect Answer

Solution

The money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year.

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