Class 12 Business Studies - Chapter Financial Markets NCERT Solutions | What are the features of the Money Marke

Welcome to the NCERT Solutions for Class 12th Business Studies - Chapter Financial Markets. This page offers a step-by-step solution to the specific question from Extra Questions, Question 6: what are the features of the money market....
Question 6

What are the features of the Money Market?

Answer

The money market is characterized by:

  • Short-Term Instruments: It deals with debt instruments that mature within one year.
  • High Liquidity: The instruments in the money market are highly liquid, ensuring easy convertibility to cash.
  • Safety: Due to the short-term nature and government backing of many instruments, they are considered safe investments.
  • Low Returns: The returns are generally lower due to lower risk and shorter maturity.

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