U.S. Government securities traded in the money market are assumed by investors to carry zero reinvestment risk.

Name: U.S. Government securities traded in the money market are assumed by investors to carry zero reinvestment risk.
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Question

Quizplus · Accepted Answer

U.S. Government securities traded in the money market, like Treasury bills, indeed have very low credit risk, but they still carry reinvestment risk because the rates at which investors can reinvest their returns can fluctuate.

US Government Securities Traded in the Money Market Are Assumed