Which financial market mainly deals in short-term instruments with maturities of up to one year?
Correct answer: A. Money market
- A. Money market
- B. Capital market
- C. Foreign exchange market
- D. Commodity market
Explanation
The money market provides funds through short-term instruments such as treasury bills and commercial paper. The capital market mainly handles longer-term securities such as shares and bonds.
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About Finance and Banking Basics
Business finance covers capital requirements, sources of funds, budgeting, cash flow, investment decisions and basic financial statements and ratios. Banking includes commercial bank functions, deposits, loans, credit creation, interest and the role of a central bank, including its monetary policy and regulatory functions.
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