Question

Which of the following statements is not true with regard to the money market?

• A. Deals in unsecured and short-term debt instruments.
• B. It is situated at specific locations.
• C. The instruments traded are highly liquid.
• D. It involves low market risk.

Answer 1

The correct option is B

It is situated at specific locations.

Answer (b) It is situated at specific locations.

Explanation:The money market fundamentally is concerned with a segment of the financial market, where financial instruments with high liquidity and transient developments are exchanged. It is utilised by individuals as a method of acquiring and lending for the present moment or on a short-term basis. Some of the examples of money markets are auto loans, trade bills, credit card receivables, etc.