Which one of the following is a money market securities?

What is a money market security?

Money market securities are essentially IOUs issued by governments, financial institutions, and large corporations. These instruments are very liquid and considered extraordinarily safe. Because they are extremely conservative, money market securities offer significantly lower return than most other securities.

Which one of the following is a money market instrument?

The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money.

Which is a money market security quizlet?

Money market securities are short-term instruments with an original maturity of less than one year. Money market securities include Treasury bills, commercial paper, federal funds, repurchase agreements, negotiable certificates of deposit, banker’s acceptances, and Eurodollars.

What securities are traded in money market?

Types Of Money Market Instruments

  • Treasury Bills (T-Bills) Issued by the Central Government, Treasury Bills are known to be one of the safest money market instruments available. …
  • Certificate of Deposits (CDs) …
  • Commercial Papers (CPs) …
  • Repurchase Agreements (Repo) …
  • Banker’s Acceptance (BA)

What is a money market instrument?

Money market instruments are financial instruments which are issued with a maturity of one year or less. They provide a market for investors to earn a return on liquid assets; borrowers who need short-term liquidity have access to these funds; and they provide the Fed with a means to effect monetary policy.

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What are the main characteristics of money market securities give three examples of money market securities?

Characteristics of Money Market Securities

  • Types of Securities. Money market securities are typically debt instruments with a face value of $100,000 or more. …
  • Rapid Maturity. …
  • Safety. …
  • Liquidity. …
  • Money Market Funds.

Which of the following is not a money market security?

Solution(By Examveda Team)

National savings certificate is not a money market securities. The National Savings Certificate is a fixed income investment scheme that you can open with any post office.

What are the characteristics of money market securities?

Features of Money Market Instruments

  • High Liquidity. One of the key features of these financial assets is high liquidity offered by them. …
  • Secure Investment. These financial instruments are one of the most secure investment avenues available in the market. …
  • Fixed returns. …
  • Fixed returns.