The buying and selling of short-term securities by financial institutions occurs mainly in:

Question

Quizplus · Accepted Answer

The buying and selling of short-term securities by financial institutions occurs mainly in the short-term money market, which is where financial institutions borrow and lend money with maturities of less than one year. The stock market is primarily for the buying and selling of long-term securities, while the Treasury market is a subset of the short-term money market that deals specifically with US government debt. The foreign exchange market is for the buying and selling of currencies.

The Buying and Selling of Short-Term Securities by Financial Institutions