Discuss Forum
1. Money market is a
- A. market for short term fund
- B. market for short term fund
- C. market for short term fund
- D. market for short term fund
Answer: Option A
Explanation:
The money market is a component of the economy which provides short - term funds. The money market deals in short - term loans, generally for a period of a year or less.
As money became a commodity, the money market became a component of the financial market for assets involved in short - term borrowing, lending, buying and selling with original maturities of one year or less.
Trading in money markets is done over the counter and is wholesale.
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