Which of the Following Is NOT a Feature of the Money

question 87

Multiple Choice

Which of the following is NOT a feature of the money market?

• A) It is a mainly wholesale market
• B) It deals with short-term financial claims
• C) It is important in financing the working-capital needs of businesses and governments
• D) It only operates as a market in which new security issues are created and marketed

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Definitions:

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put their money into it.

Risk-free Rate

The return on an investment with zero risk; typically represented by the yield on government bonds.

Risk Characteristics

Features that define the vulnerability of an investment's return, including volatility, market risk, and credit risk.

Systematic Risk

The risk inherent to the entire market or market segment, also known as "market risk," which cannot be reduced through diversification.