Question

Which of the following statements about money market securities are true? A. There is no well-developed secondary market for commercial paper. B. The secondary market for Treasury bills is extensive and well developed. C. The interest rates on all money market instruments move very closely together over time. D. All of the above are true.

Answer 1

The correct option is D

Step-by-step explanation:

Money market securities are those securities which are short term securities or investment and these are highly liquid and secure. These have the maturities one day to a year. For these securities, there is no well developed market for the commercial paper (CP), the interest rate on the instrument move closely together and the secondary market for the Treasury bills is well developed as well as extensive.