Which of the following is not an instrument of Money Market?

Correct option is D

The Money Market deals with short-term financial instruments, all having a maturity period of less than one year. Instruments such as Commercial Paper (CP), Certificate of Deposit (CD), and Treasury Bills (T-Bills) are classic money market instruments used for short-term financing and liquidity management.
However, Equity Shares are long-term securities, traded in the Capital Market, not in the Money Market. Equity represents ownership in a company and has no maturity period, which makes it unsuitable for short-term financing.
Thus, the correct answer is (d) Equity Share.
Information Booster
1. Commercial Paper is an unsecured short-term promissory note issued by companies.
2. Certificates of Deposit are negotiable time deposits issued by banks.
3. Treasury Bills are short-term government securities issued at a discount.
4. Money market instruments help maintain liquidity, meet working capital needs, and manage short-term deficits.
5. The money market is regulated by the RBI and plays a crucial role in monetary policy.
Additional Information
· (a) Commercial Paper: A money market instrument issued by corporates for short-term borrowing.
· (b) Certificate of Deposit: Another money market instrument issued by banks to raise short-term funds.
· (c) Treasury Bill: A government-issued short-term debt instrument; a core part of the money market.
· (d) Equity Share: Not a money market instrument—belongs to the capital market and represents ownership.