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Commerce · Q947

Financial Management

Graduate and Post Graduate · Commerce · question 947

Q947

In financial markets, period of maturity less than one year of financial instruments is classified as

A.
short-term
Answer
B.
long-term
C.
intermediate term
D.
capital term

Answer: Option A

Solution

Answer: Option A
Solution:
In financial markets, period of maturity less than one year of financial instruments is classified as short-term. Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers.