The Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of ____________?
Correct answer: B. money markets
- A. liquid markets
- B. money markets
- C. transaction markets
- D. functional markets
Explanation
The Federal Reserve, dealers, mutual funds and the Treasury participate in the money market, where short-term debt instruments and funds are traded. The other market labels are not the standard classification for these participants.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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