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Management · Q929

Financial Management

Graduate and Post Graduate · Management · question 929

Q929

Type of financial securities that matures in less than a year are classified as

A.
money market securities
Answer
B.
capital market securities
C.
saving intermediaries
D.
discounted intermediaries

Answer: Option A

Solution

Answer: Option A
Solution:
Type of financial securities that matures in less than a year are classified as money market securities. There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.