Which of the following are money market instruments?
I. Treasury bill
II. Treasury bond issued for two years
III. Bank certificate of deposit issued for 9 months
IV. Provincial bond issued for 6 months
A) I
B) II and IV
C) I and II
D) I, III and IV
E) I, II and IV

Question

Quizplus · Accepted Answer

Money market instruments are short-term debt instruments, typically with a maturity of one year or less. Treasury bills (I) are short-term government securities with maturities ranging from a few days to 52 weeks. Bank certificates of deposit (III) can be issued for short terms such as 9 months, fitting the criteria. Provincial bonds (IV), when issued for short terms like 6 months, also qualify as money market instruments. Treasury bonds (II), however, are typically long-term debt instruments with maturities longer than one year, and thus do not fit the criteria for money market instruments.

Which of the Following Are Money Market Instruments