Money market securities represent a high risk and return asset class.

Question

Quizplus · Accepted Answer

Money market securities are generally considered to be a low risk and low return asset class. They are short-term, highly liquid investments that are considered relatively safe because they are issued by stable entities such as governments, corporations, and financial institutions. However, the tradeoff for safety is lower returns compared to other asset classes that carry more risk.

Money Market Securities Represent a High Risk and Return Asset