Money markets trade securities that
I. Mature in one year or less
II. Have little chance of loss of principal
III. Must be guaranteed by the federal government

Question

Quizplus · Accepted Answer

Money markets trade securities that mature in one year or less and have little chance of loss of principal. However, they do not necessarily have to be guaranteed by the federal government. Therefore, options A and D are incorrect. Option B is also incorrect as not all securities traded in the money market have a little chance of loss of principal.

Money Markets Trade Securities That