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Mr. A wants to invest an amount he gained as surplus profit from his business in the money market. Suggest him which of the following is not an appropriate option for investment?

Solution

✅ Correct Option: 1

Money market instruments have maturities of up to one year, such as certificates of deposit issued by commercial banks, commercial paper (e.g., 15 days) and short-term zero coupon instruments issued through the RBI. A five-year government bond is a long-term capital market security, so it is not an appropriate money market investment.

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