Question

The money market is a market for __________ funds which deals in monetary assets whose period of maturity is upto one year.

• A. short-term
• B. long-term
• C. medium-term
• D. nano-term

Answer 1

Answer: (A)

short-term

The money market is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year. Generally money market is the source of finance for working capital. Transactions of money market include lending and borrowing of cash for a short period of time and also sale and purchase of securities having one year time.