Which of the Following Is NOT a Typical Characteristic of Money-Market

question 3

Multiple Choice

Which of the following is NOT a typical characteristic of money-market securities?

• A) Little or no default risk
• B) Liquid, easily bought and sold
• C) Interest is not taxable at federal level
• D) Maturities less than 1 year

---

Definitions:

Annuity Payment

Regular payments received from an annuity investment over a specified period.

Contract Cost

is the total expense that a company recognizes on its books for a specific contract over its duration, encompassing labor, materials, and overhead.

Deductible IRA Contribution

A contribution to an Individual Retirement Account (IRA) for which the taxpayer can claim a tax deduction, subject to certain conditions and limits.

Pension Plan

A retirement plan funded by employers or employees, or both, paying out a fixed sum to retirees, often based on salary and years of service.