BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Usually less than two years.
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Usually less than three years.
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Usually less than one year.
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Usually less than five years.
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Detailed explanation-1: -The money market is part of the fixed-income market that specializes in short-term debt securities that mature in less than one year. Most money market investments often mature in three months or less. Because of their quick maturity dates, these are considered cash investments.
Detailed explanation-2: -These markets are described as “money markets” because the assets that are bought and sold are short term-with maturities ranging from a day to a year-and normally are easily convertible into cash.
Detailed explanation-3: -Money market funds invest in high quality, short-term debt securities and pay dividends that generally reflect short-term interest rates. Many investors use money market funds to manage their cash and other short term funding needs.
Detailed explanation-4: -Maturity of money market instruments is usually up to one year. At the same time, the maturity of capital markets instruments is longer.