A common characteristic of money market instruments is their high degree of liquidity.

Question

Quizplus · Accepted Answer

Money market instruments are generally short-term debt instruments with high credit quality and low risk. They are designed to provide a safe and liquid investment option for investors. The high degree of liquidity refers to the ease with which these instruments can be bought or sold without significantly affecting their market price. Therefore, it is true that a common characteristic of money market instruments is their high degree of liquidity.

A Common Characteristic of Money Market Instruments Is Their High