ICANBusiness, Management and FinanceIntroduction to Finance and Financial Markets2025

Which of the following instruments is traded in the money market rather than the capital market?

AFederal Government of Nigeria (FGN) Bonds with a 10-year tenor
BOrdinary shares listed on the Nigerian Exchange Group (NGX)
CBankers' Acceptances with a 90-day maturityCORRECT
DEurobonds issued by a Nigerian corporate entity
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
The money market deals in short-term financial instruments with maturities of one year or less, such as Treasury Bills, Bankers' Acceptances, and Commercial Papers. Bankers' Acceptances with a 90-day maturity clearly fall within the money market. FGN Bonds (10-year tenor), ordinary shares, and Eurobonds are long-term instruments traded in the capital market.
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