Financial markets in which equity and debt instruments with maturities less than one year are traded are called:
A) money markets.
B) capital markets.
C) Over the counter exchange.
D) none of the above.

Question

Quizplus · Accepted Answer

Money markets specialize in short-term debt securities, such as Treasury bills, commercial paper, and certificates of deposit, as well as some equity instruments with maturities less than one year. Therefore, the correct option is A, money markets. Option B, capital markets, deals with long-term securities, such as stocks and bonds, with maturities exceeding one year. Option C, over the counter exchange, refers to a decentralized marketplace where participants trade financial instruments directly between two parties without any intermediaries.

Financial Markets in Which Equity and Debt Instruments with Maturities