ABC Jewels issues some unsecured debt with a 6-month maturity. This debt is classified as a
A) Call option
B) Futures contract
C) Money market instrument
D) Fixed-income securities
E) Derive security

Question

Quizplus · Accepted Answer

The debt issued by ABC Jewels is a money market instrument, as it has a short-term maturity of 6 months and is unsecured. Money market instruments typically include debt securities with maturities of less than one year and are considered low-risk investments due to their short-term nature.

ABC Jewels Issues Some Unsecured Debt with a 6-Month Maturity