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:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Production Function

An equation that describes the relation between inputs used in production and the output of goods or services.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Commodity

A basic asset deployed in commercial transactions that is exchangeable with other assets of the same classification.