Short-term financing transactions commonly occur in the:

A. primary markets.

B. secondary markets.

C. capital markets.

D. money markets

The correct option is (D)

Explanation:

Short-term debt instruments are traded in money market that have maturity ranging from one day to one year. Some examples of money market instruments are certificate of deposits and treasury bills that have low risk and low returns.

Primary markets are where securities are traded for the first time. Buying and selling or already traded stock is done in secondary market. Capital markets deal with long-term securities. So, these options are incorrect.

Short-term financing is carried out in in money markets.