Features of Money Market (Short Term) - SS2 Accounting Past Questions and Answers - page 1
1
What is the maturity of the financial instruments traded in the money market?
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A
One year or less
B
Two years or more
C
Three years or more
D
Five years or more
2
What is the risk level associated with investing in the money market?
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A
High risk
B
Medium risk
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C
Low risk
D
No risk
3
Who sets the interest rates for many of the financial instruments traded in the U.S. money market?
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A
The Federal Reserve
B
The Securities and Exchange Commission
C
The Internal Revenue Service
D
The Treasury Department
4
What type of market is the money market?
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A
Centralized exchange market
B
Decentralized exchange market
C
Primary market
D
Secondary market
5
What is the typical return on investments in the money market?
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A
High return
B
Medium return
C
Low return
D
No return
6
What are some of the financial instruments traded in the money market?
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7
Why is the money market considered to be a vital component of the financial system?
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