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Question

_________ instruments enjoy higher degree of liquidity.
  1. Money market
  2. Capital market
  3. Both money and capital market
  4. None of these

A
Money market
B
Capital market
C
Both money and capital market
D
None of these
Solution
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Money market instrument enjoy a higher degree of liquidity. It is a segment of the financial market in which financial instruments with high liquidity and very short maturity periods are traded.

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