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Compared to bonds, money market investments tend to possess:

a. lower liquidity and marketability.
b. higher liquidity and marketability.
c. higher price volatility.
d. more sensitivity to interest rate changes.

1 Answer

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Final answer:

Compared to bonds, money market investments tend to possess higher liquidity and marketability, lower price volatility, and less sensitivity to interest rate changes.

Step-by-step explanation:

Compared to bonds, money market investments tend to possess higher liquidity and marketability. Money market investments are highly liquid and can be easily converted into cash without significant loss of value. On the other hand, bonds may have certain restrictions on when and how they can be sold.

Money market investments also generally have lower price volatility compared to bonds, meaning they experience smaller fluctuations in value. Additionally, money market investments are less sensitive to interest rate changes compared to bonds, as their returns are typically influenced by short-term interest rates set by central banks or other factors.

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