Which of the following is best described as a money market instrument?
A) Common stock
B) Corporate bonds
C) Negotiable certificates of deposit

Question

Quizplus · Accepted Answer

Negotiable certificates of deposit are short-term financial instruments typically issued by banks to raise funds and are considered money market instruments due to their short maturity periods. Common stock and corporate bonds are not considered money market instruments; common stock represents equity ownership in a company with no maturity, and corporate bonds are long-term debt securities.

Which of the Following Is Best Described as a Money