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—–is a market where money is brought and sold

-----is a market where money is brought and sold

Looking for the answer to the question below related to Financial Management ?

—–is a market where money is brought and sold

 Options:

A. Money market
B. capital market
C. share market
D. none of these

The Correct Answer Is:

  • A. Money market

The correct answer is A. Money market. The money market is a specialized sector of the financial market where short-term borrowing and lending of funds take place. It is a market where money is bought and sold in the form of various financial instruments with high liquidity and short maturities.

Now, let’s explore why the other options are not correct:

B. Capital market:

The capital market is a market for long-term financial instruments such as stocks, bonds, and other securities. It is primarily focused on raising capital for companies and governments.

While the capital market does involve the buying and selling of financial instruments, it is not specifically focused on the buying and selling of money itself. Therefore, option B is not the correct answer.

C. Share market:

The share market, also known as the stock market or equity market, is a segment of the financial market where the buying and selling of shares or ownership interests in companies take place.

While money is used to buy and sell shares in the share market, the primary focus is on trading ownership stakes in companies rather than buying and selling money itself. Hence, option C is not the correct answer.

D. None of these:

Option D is not the correct answer because the money market, as explained earlier, fits the description of a market where money is bought and sold.

The money market deals with short-term borrowing and lending of funds, providing liquidity to financial institutions and allowing for the management of short-term cash requirements.

Conclusion

In conclusion, the correct answer is A. Money market. It is the market where money is bought and sold in the form of various financial instruments with high liquidity and short maturities.

The other options, B. Capital market and C. Share market, are not correct because while they involve the buying and selling of financial instruments, they are not specifically focused on the buying and selling of money itself.

Option D, None of these, is also not correct because the money market fits the given description accurately.

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