Products & Their RisksQuestion 30 of 398
Which of the following is a characteristic of money-market instruments?
a.Maturities longer than 10 years
b.Short maturities of one year or less and high liquidity
c.Equity ownership in the issuer
d.Guaranteed capital gains
Explanation
Money-market instruments are short-term debt with maturities of one year or less and are highly liquid, making them low-risk cash equivalents. They are not long-term, not equity, and do not guarantee capital gains.
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