Which of the following are the instruments of money market ? (i) Certificate of deposit (ii) Commercial…
Certificates of deposit, commercial paper and Treasury bills are money-market instruments. They serve short-term financing and investment needs, while industrial securities…
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Which of the following are the instruments of money market ?
(i) Certificate of deposit
(ii) Commercial paper
(iii) Industrial securities market
(iv) Bond market
(v) Treasury bill market
Answer and explanation
Correct answer B
Certificates of deposit, commercial paper and Treasury bills are money-market instruments. They serve short-term financing and investment needs, while industrial securities and bonds belong to the capital market.
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Madhya Pradesh SET (MP SET)