Which of the Following Is Characterized as Unsecured Money Market

question 48

Multiple Choice

Which of the following is characterized as unsecured money market instrument?

• A) Treasury bill
• B) Debentures
• C) Commercial paper
• D) All of the above
• E) a and c

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Definitions:

Bond Ratings

These are assessments provided by credit rating agencies on the creditworthiness of bond issuers, indicating the risk level of bonds defaulting.

Moody's Baa

Moody's Baa rating denotes bonds that are considered medium-grade, subject to moderate credit risk, and as such, investors should investigate further.

S&P's BBB

A credit rating by Standard & Poor's that indicates an investment grade with moderate credit risk.

Bond Ratings

A system used to assess the credit quality and risk level of bonds, typically assigned by rating agencies.