A government bond has an original maturity of 20 years, but with the passage of time now has actual maturity of 12 months; this security is now a money market instrument.

Question

Quizplus · Accepted Answer

Money market instruments are short-term debt securities that typically have original maturities of one year or less. A government bond that originally had a maturity of 20 years but now has 12 months left to maturity is still considered a capital market instrument, not a money market instrument, despite its current short maturity.

A Government Bond Has an Original Maturity of 20 Years