Question

which of the following is an example of a money market instrument A. 10 year corporate...

which of the following is an example of a money market instrument

A. 10 year corporate bond

b. preferred stock

c. us treasury bills

d. none of the above

Homework Answers

Answer #1

Option a, 10 year corporate bond is a debt security issued by a company to raise capital for its needs.

Option b, preferred stock pays a predetermined payment at regular intervals and have a higher claim than equity shareholders.

Option c, US treasury bills is a market market instrument issued by the US government and have zero risk. The maturity period range from three months to one year.

Hence, the answer is option c.

In case of any query, kindly comment on the solution.

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