Trades in the Money Market Are Settled on the Following

question 58

Multiple Choice

Trades in the money market are settled on the following basis:

• A)T + 0
• B)T + 1
• C)T + 2
• D)T + 3
• E)instantly.

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Definitions:

External Benefit

A positive effect or advantage that results from a product or service's use, extending beyond the direct buyer or consumer to others not involved in the transaction.

Output

The cumulative production of goods and services by an economy over a given time frame.

External Cost

Costs of a transaction or activity that affect people other than those directly involved in the transaction, often not reflected in the market prices.

Social Cost

The total cost to society of an action, including both private costs borne by individuals and external costs absorbed by others.