Which of the following is not considered a money market instrument?Treasury billsCommercial paperShares and bondsRepurchase agreement (2024)

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A

Commercial paper

B

Treasury bills

C

Repurchase agreement

D

Shares and bonds

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Solution

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Money market instruments are the instruments which are invested for a short period of time. They have the maturity period of less than one year. Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year. Hence, shares and bonds having maturity of more than one year are not considered as money market instrument.

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Which of the following is not considered a money market instrument?Treasury billsCommercial paperShares and bondsRepurchase agreement (2024)
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