Answer (D) is correct . Money markets trade debt securities with maturities of less than 1 year. These markets are dealer-driven because dealers are the principals who buy and sell instruments at their own risk. Money markets are marketable and short-term with low default risk. They can be found in New York, London, and Tokyo.
Answer (A) is incorrect because Primary markets raise capital for initial issues of securities.
Answer (B) is incorrect because Capital markets trade long-term debt and equity securities.
Answer (C) is incorrect because Secondary markets provide for trading previously issued securities.
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