A typical money market instrument carries which of the following?
Answer(s): D
short-term maturity. A money market maintains liquidity and is defined as having maturity of less than one year.
An offering price of 102 plus accrued interest applies to which of the following securities?
Answer(s): B
certificates of deposit. CDs trade with “accrued interest” as part of the price.
Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of the tax?
tax anticipation bill. These are specifically designated securities that may be used at face value for payment of corporate taxes.
An advertisement for a CMO security by a member of FINRA should disclose which of the following?
Answer(s): C
that the stated yield is an estimate that may vary passed upon prepayments and market factors. The only guarantee is that nothing is guaranteed, especially the yield.
Which of the following statements incorrectly describes US securities markets?
a money market comprised of short-term debt and equity issues. This is the statement that is “incorrect”. Equity issues are not traded in the money market, which consists only of high-quality short-term debt securities.
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