n NISM Certifications
X NISM Series X
Medium

Which market specializes in issuing and trading short-term debt instruments, typically with maturities of one year or less?

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

    Inter Bank Market

  2. Money Market

    Correct answer

  3. C

    Bond Market

  4. D

    Derivative Market

Why this is the answer

The money market is the segment of the financial system where short-term debt instruments like Treasury bills, commercial paper, and certificates of deposit are issued and traded, generally with maturities up to one year.

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