Which of the following is not considered a money market instrument?

Treasury bills

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Repurchase agreement

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Commercial paper

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Shares and bonds

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Solution

The correct option is C Shares and bonds
Money market instruments are the instruments which are invested for a short period of time. They have the maturity period of less than one year. Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year. Hence, shares and bonds having maturity of more than one year are not considered as money market instrument.

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Similar questions

Which one of the following is not a “Money Market Instrument”?

Q41) With regarding to money market in India, consider the following statements

i) Money market is the market for short term lending and borrowing and deals only with secured loans

ii) Call money and notice money are important instruments of money market

iii) If the lending/borrowing is for only one day it is called call money

iv) If the lending /borrowing is for 2-14 days it is called notice money

Identify the correct statement/s

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