Question 11. 11. Which of the following statements about the money market is/are

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Question 11.11. Which of the following statements about the money market is/are true? (Points : 3)        Most money market securities do not pay interest. Instead the investor pays
less for the security than it will be worth when it matures
       Pension funds invest a portion of their assets in the money market to insure
sufficient liquidity to meet their obligations
       Money markets are used extensively by businesses both to warehouse surplus
funds and to raise short-term funds
       All three of the above statements are true of money markets
       Only (a) and (c) are true; (b) is not Question 12.12. Treasury bonds are subject to ____ risk but are free of ________risk. (Points : 3)        default; interest-rate
       default; underwriting
       interest-rate; default
       interest-rate; underwriting Question 11.11. Which of the following statements about the money market is/are true? (Points : 3)        Most money market securities do not pay interest. Instead the investor pays
less for the security than it will be worth when it matures
       Pension funds invest a portion of their assets in the money market to insure
sufficient liquidity to meet their obligations
       Money markets are used extensively by businesses both to warehouse surplus
funds and to raise short-term funds
       All three of the above statements are true of money markets
       Only (a) and (c) are true; (b) is not

Explanation / Answer

Answer 11.
The following statement is true about the money market:
Money markets are used extensively by businesses both to warehouse surplus funds and to raise short term funds


Answer 12.
Treasury bonds are subjected to interest rate risk but are free of default risk.

thus the answer is interest-rate; default

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