BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which among the following is/are correct regarding Money Market?
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Money Market is a market for short-term funds
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Maturity in this market ranging from overnight to one year
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The basic function of money market is to provide efficient liquidity position
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All of the above
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Explanation:
Detailed explanation-1: -Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
Detailed explanation-2: -1) Treasury bills 2) Commercial papers. 3) Debentures 4) Certificates of deposits.
Detailed explanation-3: -Characteristics of Money Market Instruments It is a market for short term financial needs, for example, working capital needs. The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year.
There is 1 question to complete.