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

1) Liquidity
2) Low risk
3) Long-term maturity
4) Short-term maturity

User Runnerpaul
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1 Answer

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Final answer:

Long-term maturity is not characteristic of money market instruments, which are instead known for their liquidity, low risk, and short-term maturities.

Step-by-step explanation:

The characteristic that is not a feature of a money market instrument is long-term maturity. Money market instruments are known for their liquidity, meaning they can be quickly converted into cash. They are also known for being low risk and having short-term maturities, typically less than one year.

In contrast, capital markets deal with longer-term securities. Therefore, out of the given options, long-term maturity is not characteristic of money market instruments, which generally helps to provide financial stability with less exposure to volatility.

User Glenn Watson
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