A Major Difference Between Fixed Income Securities and Money Market

question 61

Multiple Choice

A major difference between fixed income securities and money market securities is that the maturity of fixed income securities is greater than:

• A) 90 days.
• B) 180 days.
• C) 1 year.
• D) 2 years.
• E) 5 years.

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Definitions:

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon.

Stock Investment

The purchase of shares in a company with the expectation of earning dividends or selling the shares at a higher price in the future.

Variability Of Return

Denotes the volatility in the profits or gains from investments over a period.

Risk

The exposure to the potential of loss or damage when the outcome is uncertain.