A ____________ is a short-term debt instrument issued by commercial banks in denominations of $100,000 or more with typical maturities ranging from one month to one year that have an active secondary market that allows short-term investors to easily match their cash or liquidity needs when they arise.

Question

Quizplus · Accepted Answer

The description provided identifies a negotiable certificate of deposit (NCD), which fits all the criteria mentioned - short-term debt instrument issued by commercial banks in denominations of $100,000 or more, with typical maturities ranging from one month to one year, and an active secondary market that allows easy liquidity for short-term investors. Repurchase agreements and government bonds may have short-term maturities but are not issued by commercial banks in denominations of $100,000 or more. Money market security is too broad a term to specifically identify the instrument described.

A ____________ Is a Short-Term Debt Instrument Issued by Commercial