Money Markets primarily deal with which type of securities?

• A. Debt securities with maturities of one year or less
• B. Long-term bonds
• C. Equity securities
• D. Currencies

Answer: (A)

Money markets focus on short-term cash management, dealing with debt instruments that mature in one year or less. This keeps them highly liquid and relatively low risk, suited for parking excess cash or meeting near-term funding needs. Examples include Treasury bills, commercial paper, certificates of deposit, and repurchase agreements. Long-term bonds and equities belong to capital markets, which involve longer horizons and different risk/return profiles, while currencies relate to the foreign exchange market. So, the best fit is debt securities with maturities of one year or less.