Which of the following are short-term financial instruments?
A)a repurchase agreement
B)a share of Walt Disney Corporation stock
C)a Treasury note with a maturity of four years
D)a residential mortgage

Question

Quizplus · Accepted Answer

A repurchase agreement is a type of short-term financial instrument where one party sells securities to another party with an agreement to repurchase them at a later date, often overnight or within a few days.

Option B, a share of Walt Disney Corporation stock, is not a short-term financial instrument. It represents ownership in the company and the value can fluctuate over time, depending on the company's performance.

Option C, a Treasury note with a maturity of four years, is not a short-term financial instrument. It has a defined maturity date of four years, making it a medium-term financial instrument.

Option D, a residential mortgage, is not a financial instrument at all. It is a type of loan used to purchase a residential property.

Which of the Following Are Short-Term Financial Instruments