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Question
Choose the incorrect statement about 'Money market':
Options
The main instruments traded in this market are Treasury bills, Trade bills, Commercial paper and Certificates of deposit.
In this market, transactions entail huge sums of money as the instruments are quite expensive.
Participation in this market is by and large undertaken by institutional participants such as the Reserve Bank of India, banks, financial institutions and finance companies.
It deals in medium and long term securities.
Solution
It deals in medium and long term securities.
Explanation:
The money market is dominated by short-term debt instruments and securities, including Treasury bills, Trade bills, Commercial paper, and Certificates of Deposit. Money market transactions often involve short-term lending and borrowing through short-term instruments.
