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Which of the following is not considered a money market instrument?
Question

Which of the following is not considered a money market instrument?

A.

Treasury Bills

B.

Commercial Paper

C.

Shares and Bonds

D.

Repurchase Agreement

Correct option is C

Money market instruments are short-term, highly liquid financial securities typically maturing in less than one year. They include instruments like Treasury Bills, Commercial Paper, Repurchase Agreements (Repo), Certificates of Deposit, and Call Money. These instruments are primarily used for short-term borrowing and lending, offering relatively low risk and high liquidity.

Treasury Bills (T-Bills): Issued by the government, these are considered safe, short-term investments with maturities of less than a year.
Commercial Paper: Unsecured, short-term promissory notes issued by companies to meet their short-term financial needs.
Repurchase Agreements (Repos): Short-term borrowing agreements where securities are sold with a promise to repurchase them at a higher price later.

In contrast, Shares and Bonds are not classified as money market instruments because they are typically long-term investments. Shares represent equity ownership in a company, and bonds are debt instruments with longer maturities (typically over one year), making them part of the capital market rather than the money market

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