BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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funds that mature in more than one year.
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flows of funds.
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stocks and bonds.
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short-term funds
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Detailed explanation-1: -The money market involves the purchase and sale of large volumes of very short-term debt products, such as overnight reserves or commercial paper . An individual may invest in the money market by purchasing a money market mutual fund, buying a Treasury bill, or opening a money market account at a bank.
Detailed explanation-2: -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. Over-the-counter trading is done in the money market and it is a wholesale process.
Detailed explanation-3: -The term ‘Money Market’, according to the Reserve Bank of India, is used to define a market where short-term financial assets are traded. These assets are a near substitute for money and they aid in the money exchange carried out in the primary and secondary market.
Detailed explanation-4: -Money market refers to the market for trading of short term securities and funds. Securities traded in the money market have a very short maturity period ranging from one day to one year.
Detailed explanation-5: -Specialisation. Money market is a section of the debt market. It specialises in very short-term debt securities with maturities of less than one year.