Which of the Following Is NOT a Typical Characteristic of Money

question 45

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 one year

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Definitions:

Safety Stock

Inventory kept on hand as a buffer against supply or demand uncertainties, ensuring that stockout situations are minimized.

Holding Costs

The expenses associated with storing unsold goods or materials, including storage, insurance, and opportunity costs.

Housing Costs

The expenses associated with acquiring, maintaining, and using a place to live, including rent, mortgage payments, taxes, and maintenance fees.

Material Handling

The logistics of moving, protecting, warehousing, managing, and disposing of materials and products from the start of production, through the distribution process, to consumption and eventual elimination.