Final answer:
Money market securities are highly marketable and generally low-risk financial instruments. They are short-term debt securities issued by governments, corporations, and financial institutions. Examples include Treasury bills, CDs, commercial paper, and repurchase agreements.
Step-by-step explanation:
Money market securities are highly marketable and generally low-risk financial instruments. They are typically short-term debt securities issued by governments, corporations, and financial institutions. Examples of money market securities include Treasury bills, certificates of deposit (CDs), commercial paper, and repurchase agreements.
These securities are highly marketable because they can be easily bought and sold in the money market. They offer low risk because they have a short maturity period and are backed by creditworthy issuers.
For example, Treasury bills are issued by the government and are considered one of the safest investments because they are backed by the full faith and credit of the government. They have a maturity period of less than one year, making them highly liquid and low-risk