Ask Question
BusinessBusiness
30 September, 11:21

A highly liquid financial instrument with a maturity of 90 days would be traded in: the bond market. none of the above. the money market. the stock market.

+3
Answers (2)
  1. 30 September, 11:37
    0
    A highly liquid financial instrument with a maturity of 90 days would be traded in the money market.

    Explanation:

    The opportunity to buy and sell several forms of short-term securities is made available by financial institutions to a broad range of borrowers and investors through the money market platform.

    Money market instruments refer to the short-term debts and securities sold on the money markets, they have maturities ranging from one day to one year and are extremely liquid. Examples of money market instruments include treasury bills, federal agency notes, certificates of deposit (CDs), eurodollar deposits, e. t. c.

    are Institutions and individuals with a choice for the highest liquidity and the lowest risk constitute the providers of funds for money market instruments.
  2. 30 September, 13:12
    0
    The Money Market.

    Explanation:

    The Financial markets can be broadly classified into two categories: Capital Market and Money Market. This classification is based on the maturity period of Financial instruments that trade in these markets. Lets study these two types of markets in detail:

    Money Market

    It is a market in which securities with a maturity of less than one year are traded. This is highly liquid market since the investors are repaid with the invested amount within one year of time. Due to a short duration, the instruments traded in this market are exposed to lower interest rate risk. A popular example of money market instrument can be Treasury Bills.

    Capital Market

    The securities that are traded in capital market are long-term and have a maturity of more than one year. The securities of capital market offer beefy returns to the investors due to higher duration and interest rate risks. If the security is of equity nature, then the market is termed as stock market. And if the traded security is bond, then we refer to it as a bond market. Examples of capital market instruments are shares and bonds.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A highly liquid financial instrument with a maturity of 90 days would be traded in: the bond market. none of the above. the money market. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Income Statement Sections During the current year, David Corporation sold a segment of its business at a gain of $210,000. Until it was sold, the segment had a current period operating loss of $75,000.
Answers (1)
Elements of effective rehearsal include all of the following except a. simulating the speech conditions. b. incorporating necessary changes. c. preparing note cards to read during the presentation. d. rehearsing the entire speech often.
Answers (1)
The financial statements of Weston Office Supply include the following items:20172016Cash $43,500 $50,000Shortminus-term Investments 27,000 17,000Net Accounts Receivable 102,000 97,000Merchandise Inventory 125,000 119,000Total Assets 527,000
Answers (1)
What is markerting management
Answers (1)
A certain chicken company decides that it will become the market leader in the poultry business in five years with a 40 percent share of the market. This statement would be classified as a (n) ... A. objective. B. mission. C. strategy. D.
Answers (1)
New Questions in Business
One of the best networking traits you can develop is
Answers (1)
The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.
Answers (1)
Which of these is an example of a tax on consumption?
Answers (1)
What is a business service orientation
Answers (1)
The GASB defines a financial reporting entity as the primary government and the entities for which the primary government is financially accountable.
Answers (1)
Home » Business » A highly liquid financial instrument with a maturity of 90 days would be traded in: the bond market. none of the above. the money market. the stock market.
Sign Up Forgot Password?