consider the following statements 1 A very short term market where transactions may be just fo...........

Economic Affairs Financial Markets

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consider the following statements:

1. A very short term market where transactions may be just for one day is called Overnight markets

2. Treasury bills market are the sub markets of money market

3. Notice money refers to borrowing and lending for 2-14 weeks

Select the correct statements using code given below:

1 and 2 only

3 only

1, 2 and 3 only

2 and 3 only

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Explanation:

The overnight market is the component of the money market involving the shortest term loan. Lenders agree to lend borrowers funds only "overnight" i.e. the borrower must repay the borrowed funds plus interest at the start of business the next day.
Notice Money refers to the borrowing and lending of funds for 2-14 days. Termmoney refers to borrowing and lending of funds for a period of more than 14 days.