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Question
Money market is the market for the long term funds.
Options
True
False
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Solution
This statement is False.
Explanation:
The money market deals with short-term funds and financial instruments with maturities of less than one year, not long-term funding.
RELATED QUESTIONS
State whether the following statement is true or false
Capital market is the market for the long term funds.
State whether the following statement is true or false
Secondary market is commonly known as stock market.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
State whether the following statement is true or false
Treasury bills are issued by commercial banks.
Find the odd one.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
Complete the sentence.
When trade bills are accepted by commercial banks, it is known as _________.
Complete the sentence.
In capital market the instruments traded have maturity period of more than ______ year.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Money market | 1) ____________ |
| b) Zero risk instrument | 2) _____________ |
| c) __________ | 3) Capital market |
| d) __________ | 4) Secondary market |
(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Correct the underlined word/s and rewrite the following sentence.
In Money market, the instruments traded have maturity period of more than one year.
Explain the following term/concept.
Call money market
Answer in brief.
State any four features of money market
Answer in brief.
Explain any 4 types of money market instruments.
Justify the following statement.
There are many participants in money market.
Answer the following question
State the instruments in money market.
Study the following case/situation and express your opinion.
| Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares. |
- Should it go to the primary market or secondary market to issue its shares?
- Should it offer its shares through public offers or rights issues?
- What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?
