A. counter instruments
B. long term instruments
C. money market instruments
D. capital market instruments
✅ The correct answer is option C.
Federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as money market instruments. There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers’ acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.
Federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as money market instruments. There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers’ acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.