The Three Most Popular Types of Marketable Securities Are Treasury

question 37

Multiple Choice

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and:

• A)Treasury notes
• B)corporate bonds
• C)commercial paper
• D)money market funds
• E)checking accounts

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Definitions:

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable alternatives in transactions, commonly seen in insurance markets.

Insurance Companies

Organizations that provide insurance policies to consumers, covering a variety of risks in exchange for premiums.

Insurance Company

A business entity that provides financial protection against losses and risks in exchange for premiums.

Property Loss

The term refers to the loss or damage of property due to various risks such as fire, theft, or natural disasters.