Type of market in which short term instruments are traded and purchased by economic units is classified as
A
money markets
B
capital markets
C
debt markets
D
economic markets
Correct Answer: money markets
Type of market in which short term instruments are traded and purchased by economic units is classified as money markets. The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.