Question

A market for lending and borrowing of short-term funds is known as the ______.

Options

• Money market

• Capital market

• Labour market

• Product market

Answer 1

A market for lending and borrowing of short-term funds is known as the money market.

Explanation:

The money market is primarily a mechanism for securing short-term funds. In this market, borrowing and lending transactions generally take place for a maturity period ranging from one day up to one year. Commercial banks, financial institutions, and the government utilize this market to meet their temporary cash or liquidity requirements.