5 Questions
What is the primary characteristic of the money market?
Providing short term debt financing and investment
Which market is defined as a mechanism that allows traders to deal in financial securities at low costs?
Money market
What type of market is a market for securities where business enterprises and government can raise long term funds?
Capital market
Which market primarily provides short-term debt financing and investment?
Money market
What are the main types of instruments that the money market deals with?
Banker’s acceptances and call/notice money market
Study Notes
Money Market Characteristics
- The primary characteristic of the money market is that it provides short-term debt financing and investment.
Definition of Markets
- A market that allows traders to deal in financial securities at low costs is called a stock market.
Capital Market
- A capital market is a market for securities where business enterprises and government can raise long-term funds.
Money Market Functions
- The money market primarily provides short-term debt financing and investment.
Money Market Instruments
- The main types of instruments that the money market deals with are short-term debt securities.
Test your knowledge about financial markets and their subtypes including the money market. Learn about the creation, transfer, and efficiency of financial assets in this quiz.
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