Which of the Following Is Not a Characteristic of a Money

question 97

Multiple Choice

Which of the following is not a characteristic of a money market security? Money market securities:

• A) mature in less than one year.
• B) are debt obligations.
• C) usually have a semi-annual coupon payment.
• D) are generally very liquid.
• E) have a fixed potential gain.

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Definitions:

Standard Error

A statistical measure that represents the accuracy with which a sample distribution represents a population, particularly the variability in an estimated mean.

Parsimony

The principle of using the simplest or least complicated explanatory means necessary to adequately account for observed phenomena, often used in model selection.

Regression Model

A statistical technique for estimating the relationships among variables, often used for prediction and forecasting.

T-statistic

A type of statistic used in hypothesis testing, calculated from sample data to determine whether to reject the null hypothesis.