ACCA FM · Chapter 2 · Question 5 of 10
Which of the following statements about the money markets is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) They are markets for lending and borrowing for periods of less than one year
Explanation
Money markets deal in short-term funds, typically with maturities of up to one year, using instruments such as treasury bills, certificates of deposit and commercial paper. Capital markets deal in long-term finance such as shares and long-dated bonds. The foreign exchange market is a separate market.
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