ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Money market provides ____
A
Medium term Funds
B
Short term Funds
C
Long term Funds
D
Shares
Explanation: 

Detailed explanation-1: -Money market refers to the market for trading of short term securities and funds. Securities traded in the money market have a very short maturity period ranging from one day to one year. Such assets act as a close substitute for cash or money.

Detailed explanation-2: -"Money market is essentially market for short term funds".

Detailed explanation-3: -Money market funds invest in highly stable, short-term debt securities that are very low risk.

Detailed explanation-4: -Money markets deal in short term lending, borrowing, buying and selling. In contrast, capital markets deal in long term lending or borrowing. Corporations or investors with sizeable investible amount deal in capital markets.

There is 1 question to complete.