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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
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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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