QAEconomics › Which of the following is not considered a money market instrument?
Q

Which of the following is not considered a money market instrument?

A. treasury bill

B. repurchase agreement

C. commercial paper

D. certificate of deposit

A

Answer: D. Certificate of deposit.

Money market instruments are differentiated by how they attain maturity in less than a year. During this time, a customer is granted loans in exchange for assets that can be traded and recovered in less than a year.

Certificates of deposit are much less flexible and require that the funds be locked away totally until they reach the agreed period of maturity. Typically, they can take almost ten years to mature.

3 years ago
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