Which of the Following Statements Is NOT Correct

question 43

Multiple Choice

Which of the following statements is NOT correct?

• A)Commercial paper is commonly purchased by money market funds.
• B)Money market funds usually have a low level of credit risk.
• C)Money market funds tend to have lower interest rate risk than bond funds.
• D)If money market fund managers expect interest rates to decrease, they should use funds generated from maturing securities to purchase new securities with shorter maturities.

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Definitions:

Time Period

A specific duration or interval during which certain events occur or conditions are measured.

Selling and Administrative Expenses

Expenses related to the daily operations of a business that are not directly tied to production, including sales promotions, salaries of administrative staff, and office rent.

Days' Sales

A measure often used in the context of 'Days' Sales in Inventory' which indicates the average number of days it takes for a company to sell its inventory.

Raw Materials Inventory

Consists of the basic materials and components required to manufacture goods.