Question

What is define as a Security and name three money market instruments.

Answer 1

Securities are financial instruments which can be traded in exchange markets.There are mainly three types of equities:stocks which include common shares,debts consisting of bonds,debuntures etc and deviatives like options,forward, futures etc

Three money market instruments:

1.Treasury bill-zero coupon bonds that mature in a year or less

2.Bills of exchange-documents guaranteeing payment at a specific date or on demand

3.Re purchase agreements-kind of short term borrowing