Which of the Following Instruments Are Traded in a Money

question 2

Multiple Choice

Which of the following instruments are traded in a money market?

• A)bank commercial loans
• B)commercial paper
• C)state and local government bonds
• D)residential mortgages

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Definitions:

Required Rate

The lowest acceptable return on an investment, determined by the investor's risk tolerance and alternative investment options.

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, often used in finance to quantify the risk of investment.

Very Risky Stocks

Shares of companies with a high level of volatility and uncertainty, often associated with the potential for both high returns and significant losses.

Risk Averse

Characteristic of an investor or decision-maker who prefers to avoid risk, often choosing investments with lower potential returns to minimize the chance of loss.