Question

Which of the following is/are money market instruments?

a) Negotiable CDs
b) Common stock
c) Treasury bonds (T-bonds)
d) 4-year maturity corporate bond

Answer 1

Negotiable CDs and Treasury bonds (T-bonds) are money market instruments.

Step-by-step explanation:

Money market instruments are short-term debt securities with high liquidity and low risk. Out of the options given, negotiable CDs and Treasury bonds (T-bonds) are considered money market instruments.

Negotiable CDs are issued by banks and have a fixed term and fixed interest rate. They can be traded on the secondary market. Treasury bonds, on the other hand, are issued by the government and have a longer maturity period, typically more than 1 year, but they can still be considered money market instruments due to their low risk and high liquidity.