BANKING AFFAIRS

Detailed explanation-1: -They have the maturity period of less than one year. Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year. Hence, shares and bonds having maturity of more than one year are not considered as money market instrument.

Detailed explanation-2: -Equity shares are long-term instruments and hence, cannot be a money market instrument.

Detailed explanation-3: -The correct answer is Bonds. Money Market is used to defining a market where short-term financial assets with a maturity of up to one year are traded.

Detailed explanation-4: -Mutual Funds is not a part of Money Market.

Detailed explanation-5: -In reality, a bond is just one type of fixed income security. The difference between the money market and the bond market is that the money market specializes in very short-term debt securities (debt that matures in less than one year).