Q.

Money market is a market for -

A. Short term fund
B. Long term fund
C. Negotiable instruments
D. Sale of shares
Answer» A. Short term fund
Explanation: The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Some of the common money market instruments are: commercial paper, municipal notes, interest rate swaps, etc.
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