A. money market instruments
B. capital market instruments
C. counter instruments
D. long term instruments
✅ The correct answer is option A.
Money market where securities are issued by governments to obtain funds for short term is 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.
Money market where securities are issued by governments to obtain funds for short term is 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.