Which financial instrument is NOT typically found in the money market?

The correct answer is long-term bonds, as they are classified as capital market instruments rather than money market instruments. The money market is designed for short-term borrowing and lending, typically comprising instruments with a maturity of one year or less.

Long-term bonds, on the other hand, typically have maturities extending beyond one year, and their primary functions are not aligned with the goals of the money market, which is focused on liquidity and short-term financing. The instruments commonly found in the money market include certificates of deposit, Treasury bills, and commercial paper, all of which have shorter maturities and are used to manage short-term funding needs effectively.

By understanding the characteristics that define money market instruments versus capital market instruments, one can better differentiate between various financial tools and their respective roles in the financial system.