Money market is a
- market for short term fund
- market for long term fund
- market for risky securities
- market for hedge fund
Answer: market for short term fund
Explanation: The money market is a component of the economy which provides short – term funds. The money market deals in short – term loans, generally for a period of a year or less.
As money became a commodity, the money market became a component of the financial market for assets involved in short – term borrowing, lending, buying and selling with original maturities of one year or less.
Trading in money markets is done over the counter and is wholesale.