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Which of the following is not a money market instrument?

a. Treasury bills
b. Commercial paper
c. Negotiable certificates of deposit
d. Treasury bonds

User Hiilo
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1 Answer

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Final answer:

The correct answer is d. The correct answer is Treasury bonds, as they are long-term government securities with maturities ranging from 10 to 30 years, unlike money market instruments, which are short-term.

Step-by-step explanation:

The financial market offers various instruments for saving and investing. One important category is money market instruments, which are typically short-term debt securities. These include Treasury bills (T-bills), which are short-term government securities with maturities of one year or less; commercial paper, a short-term unsecured promissory note issued by corporations; and negotiable certificates of deposit (CDs), which are bank-issued time deposits that can be sold on the secondary market.

Contrasting with these short-term securities is the Treasury bond, which is not considered a money market instrument because it is meant for long-term investment, with maturities typically ranging from 10 to 30 years. Treasury bonds are a form of government debt issued to finance longer-term expenditures.

Given this information, the correct answer to the question 'Which of the following is not a money market instrument?' is option d: Treasury bonds.

User Johny Jaz
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