Which of the following securities is a money market instrument?
A) Treasury note
B) Treasury bond.
C) municipal bond.
D) commercial paper.
E) mortgage security.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term debt instrument issued by corporations and governments to finance their short-term cash needs. Being a short-term debt instrument, commercial paper is classified as a money market instrument. The other options, treasury note, treasury bond, municipal bond, and mortgage security, are all types of long-term securities and therefore not money market instruments.

Which of the Following Securities Is a Money Market Instrument