The Default Risk Involved in Money Market Instruments Is

question 48

Multiple Choice

The default risk involved in money market instruments is:

• A)usually higher than most MNCs are willing to accept.
• B)usually lower than any other short-term investment.
• C)essentially the same for all issuers.
• D)determined by the maturity date of the instrument.

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Definitions:

Personal Costs

Expenses that individuals incur in their daily lives or for personal activities.

Economic Activity

The production, distribution, and consumption of goods and services in an economy.

Benefits

Advantages or monetary assistance received from employment, government, or insurance.

Economic Thinking

The process of evaluating decisions based on costs, benefits, and the impact on resource allocation.