[Solved] Which of the following statements about money market is CORRECT? — Ans: It is a market for short-term debt instruments | Financial Awareness

Financial Awareness - Risk, Stability & Emerging Finance

Which of the following statements about money market is CORRECT?

AIt is a market for short-term debt instruments

BIt deals with long-term funds

CIt is regulated by the Insurance Regulatory and Development Authority

DIt primarily trades in equity shares

Step-by-Step Solution

Step 1: Understand money market characteristics
Money market deals with short-term debt instruments, typically with maturities less than one year.
Step 2: Analyze options
Long-term funds are part of capital markets. IRDAI regulates insurance, not money markets. Equity shares are traded in capital markets.
Final Answer:
It is a market for short-term debt instruments → Option A
Quick Check:
Money market = short-term debt instruments ✅

Quick Trick: Remember: Money market = short-term debt, Capital market = long-term funds.

Common Mistakes:

Master "Risk, Stability & Emerging Finance" in Financial Awareness

Start learning the concept with an interactive lesson.

More Financial Awareness Quizzes

Which of the following statements about money market is CORRECT?