Which of the following is NOT a typical characteristic of money-market securities?
A)Little or no default risk
B)Liquid,easily bought and sold
C)Interest is not taxable at state or federal level
D)Maturities less than 1 year

Question

Quizplus · Accepted Answer

Money-market securities typically have maturities less than 1 year and are highly liquid with little or no default risk. However, interest earned on these securities is usually taxable at both the state and federal level. Therefore, option C, which states that interest is not taxable at the state or federal level, is not a typical characteristic of money-market securities.

Which of the Following Is NOT a Typical Characteristic of Money-Market