Which of the Following Statements Best Describes Financial Markets

question 9

Multiple Choice

Which of the following statements best describes financial markets?

• A) Rates of return on T-bill are the highest among all major financial securities.
• B) Money market mutual funds are illiquid.
• C) Money markets are markets for long-term debt and common stocks.
• D) Euro-Canadian market time deposits are instruments issued by banks outside Canada.

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Definitions:

Social Security Trust Fund

A governmental fund that collects payroll taxes to provide retirement, disability, and survivors' benefits.

Federal Government

The national government of a federation, responsible for national affairs, distinct from state or local governments.

Bonds

Fixed-income securities that represent loans made by investors to borrowers, typically corporate or governmental, which pay interest over a defined period and return the principal at maturity.

Baby Boomers

The demographic cohort born approximately between 1946 and 1964, experiencing significant political, economic, and social changes.