Which of the following is not a characteristic of a money market security? Money market securities:
A) mature in less than one year.
B) are debt obligations.
C) usually have a semi-annual coupon payment.
D) are generally very liquid.
E) have a fixed potential gain.

Question

Quizplus · Accepted Answer

Money market securities typically do not have coupon payments, and instead, they are sold at a discount from their face value. Therefore, choice C is incorrect. The other characteristics mentioned in the question are true for money market securities.

Which of the Following Is Not a Characteristic of a Money