A Canadian bond dealer sells a 90-day T-bill to a large institutional investor. This transaction is most likely to occur in which of the following markets?

Question: A Canadian bond dealer sells a 90-day T-bill to a large institutional investor. This transaction is most likely to occur in which of the following markets?

Answer options:

• The primary capital market.
• The secondary capital market. ✅ The money market.
• The foreign exchange market.

Correct answer: The money market.

Explanation: Treasury bills (T-bills) are short-term debt instruments, typically with maturities of less than one year. Transactions involving such short-term debt instruments occur in the money market, which facilitates short-term borrowing and lending.