Money market instruments are ________ term and ________ relative to capital market instruments.

Question

Quizplus · Accepted Answer

Money market instruments are typically short-term with a maturity of less than one year and are generally considered less risky than capital market instruments, which have longer maturities and are exposed to greater market fluctuations. Therefore, the best choice is C, short-term and less risky. A and B are incorrect because money market instruments are not typically long-term or risky. D is incorrect because money market instruments are short-term, not long-term.

Money Market Instruments Are ________ Term and ________ Relative to Capital

Money Market Instruments Are Term and Relative to Capital