The correct answer is (a). Money market deals in short-term funds.
Money market is a financial market where short-term debt instruments are bought and sold. These instruments are typically issued by governments, banks, and other large corporations. The maturity of money market instruments is typically less than one year.
Money market funds are mutual funds that invest in money market instruments. They are a type of short-term investment that is designed to provide liquidity and safety. Money market funds are typically considered to be low-risk investments.
Money market instruments are used by investors to store cash and earn a return on their money. They are also used by businesses to finance their short-term operations.
Some examples of money market instruments include:
- Treasury bills
- Commercial paper
- Bankers’ acceptances
- Repurchase agreements
- Certificate of deposit
Money market funds are a popular investment choice for individuals and businesses. They offer a high degree of liquidity and safety, and they typically have low fees.