Money Market Instruments Issued by a Corporation

question 47

Multiple Choice

Money market instruments issued by a corporation:

• A)are default-free.
• B)are less liquid than those issued by the government.
• C)must be held by the original purchaser until maturity.
• D)can only be resold to the original issuer.
• E)are risk-free.

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Definitions:

Investment Turnover

A ratio indicating how efficiently a company generates sales revenue from its investment in assets.

Return on Investment

A measurement of the gain or loss generated on an investment relative to the amount of money invested.

Residual Income

A measure of profit that exceeds the minimum required return on an investment or business venture.

Percentage

A proportion or share in relation to a whole, typically expressed as a fraction of 100.