Final answer:
The money market instruments from the list are Treasury bills, bankers acceptances, and commercial paper (d). American depository receipts are not money market instruments. Money market accounts are part of the M2 money supply, which also includes savings accounts, time deposits, and money market funds.
Step-by-step explanation:
The money market instruments are financial securities that provide businesses, banks, and the government with large amounts of low-cost capital for a short time. The correct options from the ones provided that can be classified as money market instruments are:
- Treasury bills: These are short-term government securities with maturities ranging from a few days up to 52 weeks. They are widely considered to be one of the safest investments as they are backed by the full faith and credit of the United States government.
- Bankers acceptances: These are short-term debt instruments issued by a company that is guaranteed by a commercial bank. They are commonly used in international trade transactions.
- Commercial paper: This is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.
While American depository receipts can be an investment vehicle, they are not considered a money market instrument but rather an equity product that represents shares in a foreign company.
Regarding the inclusion of money market accounts within the M2 money supply, it is important to note that M2 includes savings accounts, time deposits, and money market funds, but the actual money market instruments themselves are not a part of this measure of the money supply.