Question

      A type of market in which securities with less than one year maturity are traded, is classified as

    A Money market Correct Answer Incorrect Answer
    B Capital market Correct Answer Incorrect Answer
    C Forex market Correct Answer Incorrect Answer
    D Secondary market Correct Answer Incorrect Answer

    Solution

    The Money market refers to the market where borrowers and lenders exchange short- term funds to address their liquidity needs. Money market instruments are generally financial claims that have low default risk, and are characterized by maturities under one year and high marketability.

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