Final answer:
Capital markets involve financial instruments with maturities over one year, therefore, 20-month CDs belong to capital markets and Treasury bills, which have maturities less than a year, belong to money markets.
Step-by-step explanation:
The student's question pertains to the capital markets and the money markets, mainly referring to the difference in maturity dates of financial instruments. Capital markets are financial markets where money is loaned, or securities are issued, for periods longer than one year. This includes corporate bonds, government bonds, and long-term certificates of deposit (CDs). On the contrary, money markets are for short-term lending and borrowing, usually for periods less than one year, dealing with instruments like Treasury bills and short-term CDs.
To answer the student's question directly, a) capital markets deal with maturities of more than one year, b) instruments with maturities of less than one year belong to the money markets, c) a 20-month CD indeed belongs to the capital markets due to its maturity period, and d) Treasury bills are part of the money markets since they have a maturity of 13, 26, or 52 weeks.