The type of market in which the short term instruments are traded and purchased by economic units, is classified as __________?
Correct answer: A. money markets
- A. money markets
- B. capital markets
- C. debt markets
- D. economic marketsAccounting & Auditing
Explanation
The money market deals in short-term instruments, generally maturing within one year, such as treasury bills and commercial paper. Capital markets, by contrast, handle 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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