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Money Markets Trade Securities That

question 31

Multiple Choice

Money markets trade securities that
I. mature in one year or less.
II. have little chance of loss of principal.
III. must be guaranteed by the federal government.


Definitions:

Insurance

A financial product that provides protection against financial losses from specified risks, such as accidents, theft, or natural disasters.

Fiscal Year

A one-year period that companies and governments use for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Book Of Final Entry

Book that receives information about business transactions from a book of original entry (a journal). Example: a ledger.

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