Which of the following is the instruments of Money market?Answer choicesSelect only one optionREVISITSharesDebenturesTreasury BillsDerivatives
Question
Which of the following is the instruments of Money market?Answer choicesSelect only one optionREVISITSharesDebenturesTreasury BillsDerivatives
Solution
The instrument of the Money Market from the given options is Treasury Bills.
Here's why:
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Shares: These are not money market instruments. They are equity instruments used in the capital market.
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Debentures: These are also not money market instruments. They are long-term debt instruments used in the capital market.
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Treasury Bills: These are indeed money market instruments. They are short-term debt instruments issued by the government.
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Derivatives: These are not money market instruments. They are financial contracts that derive their value from an underlying asset. They can be used in both the capital market and the money market, but they are not, in themselves, money market instruments.
So, the correct answer is Treasury Bills.
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