An example of a financial instrument in the money market is a
A) residential mortgage.
B) corporate bond.
C) negotiable bank CD.
D) U.S. government agency security.

Question

Quizplus · Accepted Answer

A negotiable bank CD is a type of financial instrument in the money market. It is a short-term, interest-bearing security issued by a bank that can be easily traded in the secondary market. Residential mortgages and corporate bonds are not typically considered money market instruments, while a U.S. government agency security may be classified as such but is not as widely traded as negotiable bank CDs.

An Example of a Financial Instrument in the Money Market