Answer (C) is correct . Funds are borrowed or lent for short periods (less than 1 year) in money markets. Examples of instruments traded in money markets are U.S.?Treasury bills, bankers’ acceptances, commercial paper, negotiable certificates of deposit, money market mutual funds, Eurodollar market time deposits, and consumer credit loans. Capital markets trade stocks and long-term debt.
Answer (A) is incorrect because Mortgages are long-term, capital market securities.
Answer (B) is incorrect because Preferred stocks are long-term, capital market securities.
Answer (D) is incorrect because Treasury bonds are long-term, capital market securities.
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