Which of the Following Is Not a Characteristic of Money

question 7

Multiple Choice

Which of the following is not a characteristic of money market instruments?

• A) short-term to maturity
• B) small denomination
• C) low default risk
• D) high marketability

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Definitions:

Portfolio Value

The total worth of all investments in a portfolio, calculated by summing the current values of all assets held.

Arbitrage Proofs

Strategies or proofs demonstrating the ability to generate risk-free profits by exploiting price differences across markets.

Futures Market

A marketplace where individuals have the opportunity to trade standardized contracts for futures, which are agreements to purchase predetermined amounts of a commodity or financial instrument at an agreed-upon price, with the delivery scheduled for a future date.

CAPM

Capital Asset Pricing Model, a theory used to determine the expected return on investment by correlating the risk of an asset to its expected return.