Which of the Following Money Market Instruments Is Not Sold

question 17

Multiple Choice

Which of the following money market instruments is not sold on a discount basis?

• A) commercial paper
• B) negotiable certificates of deposit
• C) Treasury bills
• D) banker's acceptances
• E) All of the above instruments are sold on a discount basis.

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Definitions:

Expenses

Costs that are incurred during the operation of a business, leading to the outflow of resources or money.

Average Rate

Typically refers to the mean value of a set of rates (e.g., interest rates, exchange rates) over a specific period of time.

Average Investment

The mean value of investments over a certain period of time, often used to measure the performance of an investment portfolio.

Annual Income

The total amount of money earned in one year from all sources before taxes and other deductions.