Money Market Institutions - SS2 Economics Past Questions and Answers - page 1
What is the typical maturity of short-term loans provided by money market institutions?
Less than one year
One to two years
Two to five years
More than five years
Which of the following is an example of a money market institution?
Stock exchange
Insurance company
Credit union
Hedge fund
What is the primary function of money market funds to investors?
Long-term investing
Providing low-risk investment options
Providing venture capital
Speculating on stocks
Which of the following is NOT an example of a money market institution?
Commercial bank
Savings and loan association
Credit card company
Credit union
What role do money market institutions play in financial markets?
Money market institutions provide liquidity and funding to financial markets by borrowing funds from savers and lending them to borrowers who need short-term financing.
What types of securities do money market funds typically invest in?
Money market funds typically invest in short-term debt securities such as treasury bills, commercial paper, and certificates of deposit.