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1 FINANCE MCQS

In the money markets, the excess supply of funds from agents is for:

  • Past terms
  • Future terms
  • Long term
  • Short term
Correct Answer: D. Short term

Detailed Explanation

Money markets deal with short-term borrowing and lending of funds, typically for periods of one year or less. The excess supply of funds from agents, such as individuals, corporations, and governments, is used to meet short-term liquidity needs. Common instruments include Treasury bills, commercial paper, and certificates of deposit.

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