n NISM Certifications
X NISM Series X
Medium

Money market instruments are characterized by being _______.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Very volatile

  2. Highly liquid

    Correct answer

  3. C

    Of overnight maturity only

  4. D

    Issued only by Reserve Bank of India

Why this is the answer

Money market instruments, with maturities less than one year, are highly liquid assets facilitating quick and easy transactions.

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