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:

Right Bank

Typically refers to the right side of a river when facing downstream, but without context, it lacks specificity for a clear financial definition.

Fixed-Income Securities

These are investment types that pay regular (often fixed) interest or dividend payments until maturity, at which point the principal is repaid.

Fixed Stream

A term generally relating to a constant or unchanging flow of income, payments, or data over a period of time.

Subordination Clauses

Provisions in a contract that determine the ranking of claims in the event of a debtor default, making some debts subordinate to others.