In financial markets, which one of the following is not typically classified as a money market instrument?

Introduction / Context:
Financial markets are often divided into the money market and the capital market. The money market deals with very short term debt instruments that provide liquidity and low risk returns, while the capital market deals with long term securities such as shares and bonds. Knowing which instruments belong to each segment helps you understand risk, maturity and suitability for different investment objectives. This question asks you to identify which instrument does not belong to the money market group.

Given Data / Assumptions:
- We are comparing several financial instruments. - Commercial paper is a short term unsecured promissory note. - Certificates of deposit are time deposits issued by banks. - Treasury bills are short term government securities. - Equity shares represent ownership in a company and have no fixed maturity.

Concept / Approach:
Money market instruments share three key features. They are short term, usually with original maturities of one year or less. They are debt instruments, meaning they represent borrowing and lending, not ownership. They are also highly liquid and relatively low risk. Commercial paper, certificates of deposit and Treasury bills all fit these characteristics. Equity shares, by contrast, represent an ownership stake in a company. They have no maturity date, carry higher risk and are traded in the capital market. Therefore, equity shares are not considered money market instruments.

Step-by-Step Solution:
Step 1: Identify the typical maturity and nature of each instrument. Step 2: Commercial paper is a short term debt used by firms to meet working capital needs. Step 3: Certificates of deposit are negotiable time deposits with banks, usually under one year in maturity. Step 4: Treasury bills are short term government securities with maturities such as 91 days, 182 days or 364 days. Step 5: Equity shares have no fixed maturity and represent ownership, not short term lending, so they belong to the capital market.

Verification / Alternative check:
If you consult a standard list of money market instruments, you will usually see Treasury bills, commercial paper, certificates of deposit, bankers acceptances and similar short term instruments. Shares and long term bonds appear under capital market instruments. Regulatory and educational materials classify equity as a capital market security because investors hold it for long term ownership and capital gains, not for short term liquidity management. This confirms that equity shares are not a money market instrument, while the other options are.

Why Other Options Are Wrong:
Commercial paper: This is a classic money market instrument issued for short durations, often 90 to 270 days. Certificate of deposit: These bank issued time deposits are traded in the money market, especially in wholesale segments. Treasury bills: Short term government debt securities are central to the money market and widely used in liquidity management.

Common Pitfalls:
Students sometimes confuse low risk with money market classification and assume that any safe investment is a money market instrument. However, safety alone is not enough; maturity and instrument type matter as well. Another common mistake is to treat all securities listed on exchanges as belonging to the same market segment. Money market instruments can trade over the counter and may not be as visible to retail investors as shares. For exam purposes, remember that equity shares are capital market instruments, while short term debt such as Treasury bills, commercial paper and certificates of deposit are money market instruments.

Final Answer:
The correct answer is Equity shares traded on a stock exchange, because equity represents long term ownership and belongs to the capital market, not to the short term money market.