Consider the following markets:
- Acceptance market
- Bond market
- Discount market
- Collateral loan market
Which of the above are specialized sub markets of a money market?
Short-term credit market is called money market. An acceptance is a time draft or bill of exchange that is accepted as payment for goods and services. It is a common method of financing short-term debts in international trade including import-export transactions. The bond market is where debt securities are issued and traded. Discount market is a short-term money market comprising of banks, discount houses, and money brokers (called bill brokers) who discount bills of exchange. Collateral is something that helps secure a loan. It is associated to long term financial market.
This question is a part of GKToday's Integrated IAS General Studies Module