[amp_mcq option1=”1, 2, 4, 5″ option2=”1, 2 and 5″ option3=”1, 2 and 3″ option4=”2 and 3″ correct=”option2″]
The correct answer is B. 1, 2 and 5.
The money market is a financial market for short-term debt instruments, which are instruments with a maturity of less than one year. The instruments traded in the money market include:
- Call money: This is a type of short-term loan that banks make to each other. It is called “call” money because the loan can be called back by the lender at any time.
- Commercial bills: These are short-term promissory notes issued by businesses to finance their working capital needs.
- Treasury bills: These are short-term debt obligations issued by the government.
- Short-term loans: These are loans that have a maturity of less than one year. They can be made to businesses, individuals, or governments.
The money market is an important source of short-term financing for businesses and governments. It is also a way for banks to manage their liquidity.
Option A is incorrect because it includes the industrial securities market. The industrial securities market is a market for long-term debt instruments, which are instruments with a maturity of more than one year.
Option C is incorrect because it includes the industrial securities market. The industrial securities market is a market for long-term debt instruments, which are instruments with a maturity of more than one year.
Option D is incorrect because it does not include the Treasury bill market. The Treasury bill market is an important part of the money market.