Knowee
Questions
Features
Study Tools

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

🧐 Not the exact question you are looking for?Go ask a question

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.

This problem has been solved

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

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.