BANKING GENERAL KNOWLEDGE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not a ‘Money Market Instrument’?
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Treasury Bills
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Commercial Paper
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Certificate of Deposit
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Equity Shares
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Explanation:
Detailed explanation-1: -Equity shares are long-term instruments and hence, cannot be a money market instrument.
Detailed explanation-2: -The major difference between money market instruments and equity securities is that these instruments are meant to fund short-term capital needs. On the other hand, equity securities are issued to raise capital for the long term.
Detailed explanation-3: -Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
Detailed explanation-4: -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.
There is 1 question to complete.