Final answer:
The correct answer is option c. The treasury manager would purchase a previously issued money market security in the secondary market (option c), where trading of existing securities occurs among investors.
Step-by-step explanation:
The market in which a treasury manager would purchase a previously issued money market security is known as the secondary market.
This is where financial assets such as stocks, bonds, and other investment vehicles are traded after they have been issued. In contrast, the primary market involves the initial issuance of securities directly from the issuer, such as when a company goes public through an IPO (Initial Public Offering) or a government issues bonds. Once these securities have hit the market, any trading that takes place is done in the secondary market.
This includes the buying and selling of treasury bills, notes, and bonds between investors, rather than with the issuing government entity. The secondary market is critical for providing liquidity, as it allows investors to sell their financial assets to other investors rather than having to hold them until maturity or repurchase them back through the original issuer.
A treasury manager seeking liquidity and flexibility will most likely utilize the secondary market to buy and sell money market securities. The options of retail market, wholesale market, and primary market are not relevant in this context; the secondary market is where previously issued financial instruments are actively traded.
Please note, the answer to the presented question is option (c) Secondary Market.