Question : It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. Which of the following market has been highlighted in the given statement?
Option 1: Money market
Option 2: Capital market
Option 3: Primary market
Option 4: Secondary market
Answer (1)
21st Jan, 2024
Correct Answer: Money market
Solution : Money market refers to market for short term funds which deals in monetary assets period of maturity is upto one year. Unsecured,short-term debt instruments that are highly liquid are issued and actively traded everyday in the money market.
Hence, option A is correct.
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