Which among the following is not correct regarding the Money Market?Question 7Answera.Money market instruments are not very highly liquidb.Function of money market is to provide inefficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc.c.Maturity in this market ranging from overnight to over one yeard.All above
Question
Which among the following is not correct regarding the Money Market?Question 7Answera.Money market instruments are not very highly liquidb.Function of money market is to provide inefficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc.c.Maturity in this market ranging from overnight to over one yeard.All above
Solution
The statement that is not correct regarding the Money Market is:
c. Maturity in this market ranging from overnight to over one year
Explanation:
The money market is a segment of the financial market in which financial instruments with high liquidity and short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Therefore, the statement that maturity in this market ranges from overnight to over one year is incorrect.
Similar Questions
The money market is a financial market in which: only long-term debt instruments are traded only short-term debt instruments are traded only medium-term debt instruments are traded none of the other alternatives is correct Question 8Tips1 / 1 ptsCurrency includes: paper money, coins and deposits paper money and coins paper money, coins and checks paper money and savings accounts Question 9Tips1 / 1 ptsThe three functions of money are: medium of exchange, unit of account and specialization medium of exchange, indirect exchange and store of value medium of exchange, unit of account and store of value unit of account, specialization, and store of value Question 10Tips1 / 1 ptsAssume you win $1.000.000 in the lottery. 40% of the prize is paid to you today and the remainder will be paid in a year’s time. If the interest rate is 7%, what is the present value of the lottery prize? Provide your answer up to two decimal places.Quiz Score: 10 out of 10Submission Details:
Which is a distinguishing feature of the money market? A. Trading of long-term securities B. High liquidity C. Focus on long-term financing D. Involvement of stock exchanges
Which of the following money market instruments is considered the most liquid? A. Certificates of Deposit (CDs) B. Commercial Bills C. Treasury Bills (T-Bills) D. Call Money
One key difference between the capital market and the money market is the: A. Investment horizon B. Level of liquidity C. Regulatory oversight D. Type of financial instruments traded
Which of the following is a segment of the money market? A. Foreign exchange market B. Stock market C. Real estate market D. Commodity market
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