Which of the following classification pairs best describes financial markets based on their term to maturity?
A)money vs. capital
B)primary vs. secondary
C)spot vs. future
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

The classification of financial markets based on their term to maturity is typically classified as either money markets or capital markets. Money markets refer to short-term debt securities that are typically issued with a maturity under one year, while capital markets refer to long-term securities with a maturity of more than one year. Therefore, (A) money vs. capital is the best classification pair that describes financial markets based on their term to maturity. The other options (B) primary vs. secondary and (C) spot vs. future are not relevant to term to maturity classification.

Which of the Following Classification Pairs Best Describes Financial Markets