Money Market Instruments Are ________ Term and ________ Relative to Capital

question 135

Multiple Choice

Money market instruments are ________ term and ________ relative to capital market instruments.

• A)long;risky
• B)short;risky
• C)short;less risky
• D)long;less risky

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Definitions:

Withdraw

To remove funds from an account, or to take back or remove an offer, statement, or participation.

Compounded Annually

Interest calculated on the principal and previously accumulated interest once a year.

Compounded Monthly

Interest on an investment is calculated and added to the principal balance every month.

Annual Contributions

Regular payments made into a retirement account, investment fund, or savings plan on a yearly basis.