Question

Money market deals in

• A. Short-term funds
• B. Medium-term funds
• C. Long-term funds
• D. None of these

Hint:

The money market focuses on short-term financing needs, ensuring liquidity and stability for businesses and governments.

Answer 1

The Correct Option is A

Step 1: Understand the money market.
The money market is a segment of the financial market that deals with short-term borrowing and lending. It focuses on assets that have a maturity of less than one year.
Step 2: Evaluate the options.
- Short-term funds are the primary focus of the money market, including treasury bills, repurchase agreements, and certificates of deposit. - Medium-term and long-term funds are typically dealt with in the capital markets, not the money market.
Step 3: Conclude.
The correct answer is that the money market deals with short-term funds.
Final Answer: \[ \boxed{\text{Short-term funds}} \]