ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Securities that trade in one year or less
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Securities that are of large denomination
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Securities that are very liquid
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All above
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Detailed explanation-1: -Liquidity–Money market instruments are liquid investments, which means that they can readily be bought and sold for stable prices. There are active secondary markets for most money market instruments, so they can be easily sold before maturity.
Detailed explanation-2: -Money market investments are characterized by safety and liquidity, with money market fund shares targeted at $1. Money market accounts offer higher interest rates than a normal savings account, but there are higher account minimums and limits on withdrawals.
Detailed explanation-3: -Money market securities have three basic characteristics in common: They are usually sold in large denominations. They have low default risk. They mature in one year or less from their original issue date.
Detailed explanation-4: -It is a financial market and has no fixed geographical location. It is a market for short term financial needs, for example, working capital needs. It’s primary players are the Reserve Bank of India (RBI), commercial banks and financial institutions like LIC, etc., More items •17-Jan-2023