Choose the incorrect statement about 'Money market' :
Show Hint
- The main instruments traded in this market are Treasury bills, Trade bills, Commercial paper and Certificates of deposit.
- In this market, transactions entail huge sums of money as the instruments are quite expensive.
- Participation in this market is by and large undertaken by institutional participants such as the Reserve Bank of India, banks, financial institutions and finance companies.
- It deals in medium and long term securities.
The Correct Option is D
Solution and Explanation
The incorrect statement is about tenure because:
1. Money Market Facts: - Short-term instruments (<1 year) - Examples: ✓ T-bills: 91-364 days ✓ Commercial paper: 15-365 days
2. Capital Market Contrast: - Medium/long-term securities - Bonds, equities, debentures
3. Other Option Verification: - (A) Correct instrument list - (B) True (minimum ₹5 lakh transactions) - (C) Accurate participant profile
Market Purpose: - Provides liquidity management - Facilitates short-term borrowing/lending
Final Answer: (D) It deals in medium and long term securities.
Top Questions on Financial Management and Financial Market
- As a Human Resource Manager, list out any eight external sources of recruitment.
- KSEAB Class XII - 2026
- Business Studies
- Financial Management and Financial Market
- What is Staffing?
- KSEAB Class XII - 2026
- Business Studies
- Financial Management and Financial Market
- What is Directing?
- KSEAB Class XII - 2026
- Business Studies
- Financial Management and Financial Market
- The proportion of debt in the overall capital is called Financial Leverage.
- KSEAB Class XII - 2026
- Business Studies
- Financial Management and Financial Market
- GreenTech Solutions, a renewable energy company, focuses on achieving financial stability and growth through robust financial management. The company ensures efficient allocation of business finance to expand operations, adopt new technology, and maintain a competitive edge. Its financial planning is centered on long-term sustainability, balancing profitability with eco-friendly initiatives.
To optimize its capital structure, GreenTech maintains a balanced mix of debt and equity, minimizing the cost of capital while ensuring financial flexibility. The firm undertakes thorough capital budgeting processes to evaluate projects like setting up new solar farms, ensuring only viable investments are pursued. Tools like Net Present Value (NPV) and Internal Rate of Return (IRR) guide decision-making.
GreenTech’s dividend decision aligns with its growth strategy. While retaining a significant portion of earnings for reinvestment, the company ensures consistent dividends to satisfy shareholders. This approach strengthens investor confidence while funding expansion plans.
Efficient working capital management ensures smooth day-to-day operations. By optimizing cash flow, managing inventory, and negotiating favorable credit terms with suppliers, GreenTech avoids liquidity issues while meeting short-term obligations.
Through prudent financial strategies, GreenTech achieves its goal of profitability and sustainability, setting an example in the renewable energy sector.- CUET (UG) - 2025
- Business Studies
- Financial Management and Financial Market
Questions Asked in CBSE CLASS XII exam
- Find the general solution of the differential equation \[ y\log y\,\frac{dx}{dy}+x=\frac{2}{y}. \]
- CBSE CLASS XII - 2026
- Differential Equations
- A square loop of side 0.50 m is placed in a uniform magnetic field of 0.4 T perpendicular to the plane of the loop. The loop is rotated through an angle of 60° in 0.2 s. The value of emf induced in the loop will be:
- CBSE CLASS XII - 2026
- Electromagnetic induction
A racing track is built around an elliptical ground whose equation is given by \[ 9x^2 + 16y^2 = 144 \] The width of the track is \(3\) m as shown. Based on the given information answer the following:
(i) Express \(y\) as a function of \(x\) from the given equation of ellipse.
(ii) Integrate the function obtained in (i) with respect to \(x\).
(iii)(a) Find the area of the region enclosed within the elliptical ground excluding the track using integration.
OR
(iii)(b) Write the coordinates of the points \(P\) and \(Q\) where the outer edge of the track cuts \(x\)-axis and \(y\)-axis in first quadrant and find the area of triangle formed by points \(P,O,Q\).
- CBSE CLASS XII - 2026
- Integration
- Consider a cylindrical conductor of length \( l \) and area of cross-section \( A \). Current \( I \) is maintained in the conductor and electrons drift with velocity \( \vec{v}_d \, (|\vec{v}_d| = \frac{eE}{m} \tau) \), where symbols have their usual meanings. Show that the conductivity of the material of the conductor is given by \[ \sigma = \frac{n e^2 \tau}{m}. \]
- CBSE CLASS XII - 2026
- Current Density
- The painting Hazrat Nizamuddin Auliya and Amir Khusro belongs to which sub-school of Deccan Miniature?
- CBSE CLASS XII - 2026
- Indian Miniature Paintings and Museums