The components of the organized sector of the money market are: I. Bill market II. Stock market III.…
The organised money market deals in short-term funds; its segments include the call money market, the bill market (treasury and commercial bills) and the bank loan market…
Choose your answer
The components of the organized sector of the money market are:
I. Bill market
II. Stock market
III. Gilt-edged (long-term government securities) market
IV. Bank loan market
Answer and explanation
Correct answer D
The organised money market deals in short-term funds; its segments include the call money market, the bill market (treasury and commercial bills) and the bank loan market for short-term credit. The stock market and the gilt-edged market for long-term government securities belong to the capital market. Hence I and IV are correct.
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UGC NET Economics