Asked by Elizabeth Steinke on May 22, 2024

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Verified

Which of the following securities is a money market instrument?

A) Treasury note
B) Treasury bond
C) Municipal bond
D) Commercial paper
E) Mortgage security

Money Market Instrument

Short-term debt instruments, often with high liquidity and low risk, used by companies and governments to manage their finances efficiently.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Treasury Note

Debt obligation of the federal government with original maturity between 1 and 10 years.

  • Pinpoint the components and appliances of the money market.
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Verified Answer

KM
Katherine McKeownMay 23, 2024
Final Answer :
D
Explanation :
Commercial paper is a money market instrument, characterized by its short-term maturity of less than 270 days. Money market instruments are used by corporations to finance their short-term cash requirements.