Asked by Georgia Faulkner on May 16, 2024

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Which one of the following is not a money market instrument?

A) Treasury bill
B) Negotiable certificate of deposit
C) Commercial paper
D) Treasury bond
E) Eurodollar account

Money Market Instrument

Financial securities that provide liquidity and are considered low risk, such as treasury bills, certificates of deposit, and commercial paper, with maturities typically less than one year.

Treasury Bond

Long-term, low-risk government debt securities issued by the U.S. Department of the Treasury, with maturities extending beyond ten years.

Negotiable Certificate

A financial document indicating the holder's right to a specific amount of money that can be bought, sold, or traded.

  • Discern the elements and tools relevant to the money market.
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RR
Rachel RobinsonMay 21, 2024
Final Answer :
D
Explanation :
Treasury bonds are not considered money market instruments because they have a longer maturity than the instruments typically found in the money market. Money market instruments are short-term financial instruments, usually with a maturity of one year or less, while Treasury bonds have maturities ranging from 10 to 30 years.