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Q.

The money market is a market for short term funds which deals in monetary assets whose period of maturity is:

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a

Up to six months

b

Up to one year

c

Up to three months

d

None of these

answer is A.

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Detailed Solution

Money market consists of various financial institutions and dealers, who seek to borrow or loan securities. It is the best source to invest in liquid assets. The money market is an unregulated and informal market and not structured like the capital markets, where things are organised in a formal way.

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