Asked by Dominique Handy on Jun 07, 2024
Verified
Which of the following is not a money market security?
A) U.S. Treasury bill
B) 6-month maturity certificate of deposit
C) common stock
D) All of the options.
Money Market Security
Short-term financial instruments, typically debt-based, that are highly liquid and considered to have low risk.
U.S. Treasury Bill
A short-term government security issued by the United States Department of the Treasury with maturity periods typically less than one year.
Certificate of Deposit
A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks.
- Classify different financial securities and separate real assets from financial assets.
Verified Answer
MM
Michael MurrayJun 09, 2024
Final Answer :
C
Explanation :
Common stock is not a money market security. Money market securities are short-term, highly liquid investments that typically have a maturity of less than one year. U.S. Treasury bills and certificates of deposit are examples of money market securities. Common stock represents ownership in a company and is not typically considered a short-term, highly liquid investment.
Learning Objectives
- Classify different financial securities and separate real assets from financial assets.