Asked by Gisselle Leyva on Jun 07, 2024
Verified
Money market securities are characterized by:
I. Maturity less than 1 year
II. Safety of the principal investment
III. Low rates of return
A) I only
B) I and II only
C) I and III only
D) I, II, and III
Money Market Securities
Short-term debt instruments, typically issued by governments, financial institutions, and corporations, characterized by high liquidity and low risk.
Principal Investment
An original amount of money invested, excluding any earnings or losses.
- Gain insight into the historical returns of different types of investments.
Verified Answer
AP
Ashley ParksJun 11, 2024
Final Answer :
D
Explanation :
Money market securities are known for having a maturity of less than 1 year, being considered safe investments in terms of preserving the principal, and typically offering lower rates of return compared to longer-term or riskier investments.
Learning Objectives
- Gain insight into the historical returns of different types of investments.