Which One of the Following Is the Best Definition of a Money

question 91

Multiple Choice

Which one of the following is the best definition of a money market instrument?

• A) corporate debt that matures in 90 days or less
• B) bank savings account
• C) investment issued by a financial institution that matures in 30 days or less
• D) investment issued by a financial institution that matures in one year or less
• E) debt issued by the government or a corporation that matures in one year or less

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Definitions:

Increase

To become or make greater in size, amount, intensity, or degree.

Demand Curve

A diagram illustrating the connection between the price of a commodity and the amount of it consumers want over a set period.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell at different prices, typically upward sloping.

Income

Money received, especially on a regular basis, for work, through investments, or from any other source, used to acquire goods and services.