The market that involves the buying and selling of short-term securities is the:
A) securities market.
B) money market.
C) share market.
D) capital market.

Question

Quizplus · Accepted Answer

The market that involves the buying and selling of short-term securities is the money market. The money market is where short-term debt instruments, such as treasury bills, commercial paper, and certificates of deposit, are bought and sold. It is a key component of the financial system and is used by businesses, financial institutions, and governments to manage their short-term cash needs. The securities market (A) is a broader term that encompasses both the money market and the capital market. The share market (C) is another term for the stock market, which is a component of the capital market. The capital market (D) is where longer-term securities, such as stocks and bonds, are traded.

The Market That Involves the Buying and Selling of Short-Term