7. Which of the following is not a characteristic of money market securities: (P

Question

7. Which of the following is not a characteristic of money market securities: (Points : 3)        they are short term
       they are highly liquid
       they are normally traded in very large denominations (i.e., high dollar transactions)
       they are risk free
       all the above are characteristics of money market securities Question 8.8. The very sensitive short-term interest rate that applies to overnight borrowings of
excess reserves-and which is closely watched as a barometer of money market  
conditions is: (Points : 3)        the discount rate
       the federal funds rate
       the prime rate
       the bank rate 7. Which of the following is not a characteristic of money market securities: (Points : 3)        they are short term
       they are highly liquid
       they are normally traded in very large denominations (i.e., high dollar transactions)
       they are risk free
       all the above are characteristics of money market securities

Explanation / Answer

7)

Answer to this is d

they are risk free

Because money market securities are known for its low risk characteristic but it is not completely risk free.

8)

Answer to this is b

Federal funds rate.

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