Money market securities exhibit which of the following?
I. Large denomination
II. Maturity greater than one year
III. Low default risk
IV. Contractually determined cash flows

Question

Quizplus · Accepted Answer

Money market securities typically have large denominations (I), low default risk (III), and contractually determined cash flows (IV). However, their maturities are generally one year or less, making statement II incorrect. Therefore, the best choice is B, which includes the options that are true (I, III, and IV) while excluding the false option (II).

Money Market Securities Exhibit Which of the Following