n NISM Certifications
X NISM Series X
Medium

Money markets are primarily used for which purpose?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Very long term funding

  2. Short-term funding needs

    Correct answer

  3. C

    Immediate cash needs

  4. D

    Retail funding

Why this is the answer

Money markets facilitate lending and borrowing for short durations, typically less than one year, for liquidity management.

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