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The money market primarily deals with which type of financial instruments?

easy Q2 of 15
Financial Awareness - Risk, Stability & Emerging Finance
The money market primarily deals with which type of financial instruments?
AInstruments with maturity up to one year
BInstruments with maturity of more than 5 years
CEquity shares and mutual funds
DReal estate and commodities
Step-by-Step Solution
  1. Step 1: Recall money market definition

    The money market deals with short-term instruments with maturity up to one year.
  2. Step 2: Evaluate options

    Only instruments with maturity up to one year fit the money market. Long-term instruments, equity shares, mutual funds, real estate, and commodities are outside its scope.
  3. Final Answer:

    Instruments with maturity up to one year → Option A
  4. Quick Check:

    Money market instruments = maturity up to one year ✅
Quick Trick: Money market = short-term funds market.
Common Mistakes:
  • Mistaking long-term instruments as money market instruments.
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