ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Money market-borrow on ____ term basis
A
short
B
medium
C
long
D
infinity
Explanation: 

Detailed explanation-1: -Short term loans are called such because of how quickly the loan needs to be paid off. In most cases, it must be paid off within six months to a year – at most, 18 months. Any longer loan term than that is considered a medium term or long term loan.

Detailed explanation-2: -The money market refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders.

Detailed explanation-3: -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-4: -"Money market is essentially market for short term funds".

There is 1 question to complete.