Prices of Money Market Instruments Undergo the Least Price Fluctuations

question 45

Multiple Choice

Prices of money market instruments undergo the least price fluctuations because of

• A)the short terms to maturity for the securities.
• B)the heavy regulations in the industry.
• C)the price ceiling imposed by government regulators.
• D)the lack of competition in the market.

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Definitions:

Three-Fifths Clause

The provision in the U.S. Constitution that stipulated that for purposes of apportionment of congressional seats and taxes, three out of every five slaves would be counted as persons.

Sectional Divide

The growing political, economic, and social differences and tensions between the northern and southern states of the United States, especially over issues like slavery, leading up to the Civil War.

Monroe Doctrine

A U.S. foreign policy principle declared in 1823, stating opposition to European colonialism in the Americas and restricting future colonization in the Western Hemisphere.

European Colonization

The process by which European powers occupied and ruled over regions across the world, often involving the exploitation and subjugation of indigenous populations, from the late 15th century onwards.