Vidyalelo
Management · Q161

International Finance and Treasury

Graduate and Post Graduate · Management · question 161

Q161

Type of market in which securities with less than one year maturity are traded is classified as

A.
money market
Answer
B.
capital market
C.
transaction market
D.
global market

Answer: Option A

Solution

Answer: Option A
Solution:
Type of market in which securities with less than one year maturity are traded is classified as money market. The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.