Money And Capital Markets - SS1 Economics Past Questions and Answers - page 1
Which of the following securities is not traded in the money market?
Treasury bills
Commercial papers
Corporate bonds
Certificates of deposit
Which of the following securities is not traded in the capital market?
Stocks
Bonds
Treasury bills
Financial instruments
Which market provides short-term funds to institutions?
Capital market
Commodity market
Money market
Bond market
Which market provides long-term funds to institutions?
Money market
Bond market
Capital market
Foreign exchange market
Which of the following is not a long-term security?
Stocks
Bonds
Treasury bills
Mutual funds
Define the money market and provide two examples of securities traded in the market.
The money market is a financial market where short-term, low-risk debt securities are traded. The securities traded in the money market include Treasury bills and commercial papers.
What is the capital market, and how does it differ from the money market?
The capital market is a financial market where long-term securities such as stocks, bonds, and other financial instruments are traded. It differs from the money market because it provides opportunities for investors to buy and sell securities for long-term investment purposes.