Which of the following is a segment of the money market? A. Foreign exchange market B. Stock market C. Real estate market D. Commodity market
Question
Which of the following is a segment of the money market?
- A. Foreign exchange market
- B. Stock market
- C. Real estate market
- D. Commodity market
Solution
The money market is a segment of the financial market in which financial instruments with high liquidity and short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year.
From the options provided:
A. Foreign exchange market - This is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency.
B. Stock market - This is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses.
C. Real estate market - This pertains to the buying, selling and renting of property or land.
D. Commodity market - This is a physical or
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