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1 FINANCE MCQS

The market where governments issue securities to raise short-term funds is called __________?

  • Money market instruments
  • Capital market instruments
  • Counter instruments
  • Long-term instruments
Correct Answer: A. Money market instruments

Detailed Explanation

The money market is where governments issue short-term debt instruments, such as Treasury bills, to raise funds for immediate financial needs. These instruments are highly liquid and have maturities typically less than one year, making them ideal for short-term financing.

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