Which of the Following Is True of Money Market Instruments

question 57

Multiple Choice

Which of the following is true of money market instruments?

• A) Their yields are highly correlated over time.
• B) They typically sell for par value when they are initially issued (especially T-bills and commercial paper).
• C) Treasury bills have the highest yield.
• D) They all make periodic coupon (interest) payments.
• E) A and B

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning or association.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, triggers a conditioned response.

Tone

The general character or attitude of a piece of writing, situation, or speech, or the pitch and strength of a sound.