n NISM Certifications
XXI NISM Series XXI-A
Medium

Which type of fund primarily invests in money market instruments?

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Equity fund

  2. B

    Bond fund

  3. Money Market Mutual Fund

    Correct answer

  4. D

    Index fund

Why this is the answer

Money Market Funds invest in short-term, highly liquid instruments like Treasury bills and commercial paper.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.