Multiple choice

Which of the following markets deals in short term instruments?

  1. Money market

  2. Capital market

  3. Derivatives market

  4. Commodity market

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The money market is the segment of the financial market where financial instruments with high liquidity and very short maturities (usually less than one year) are traded. Capital markets deal with long-term instruments.