The type of market in which securities with less than one year maturity are traded, is classified as ___________?
Correct answer: A. money market
- A. money market
- B. capital market
- C. transaction market
- D. global market
Explanation
The money market deals in short-term financial instruments, normally with maturities of one year or less. The capital market is used for longer-term securities.
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About Business Finance
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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