Money Markets and Securities
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Questions and Answers

Which type of market trades debt securities or instruments with maturities of less than one year?

  • Capital market
  • Money market (correct)
  • Stock market
  • Foreign exchange market
  • What is the main purpose of capital markets?

  • To issue Treasury securities
  • To cater to longer-term investments and borrowing needs
  • To serve participants with excess funds to invest for periods longer than one year (correct)
  • To trade short-term debt instruments
  • What type of instruments trade in active secondary markets?

  • Stock market instruments
  • Capital market instruments
  • Foreign exchange instruments
  • Money market instruments (correct)
  • What are secondary money markets vital for?

    <p>Reallocating available liquid funds</p> Signup and view all the answers

    Which market involves short-term debt instruments purchased by those with excess funds?

    <p>Money market</p> Signup and view all the answers

    Which one of these is NOT a learning goal for Chapter 5?

    <p>Examine the process used to issue Treasury securities</p> Signup and view all the answers

    Which one of these is NOT a characteristic of money markets?

    <p>Cater to longer-term investments and borrowing needs</p> Signup and view all the answers

    Which one of these is a key participant in money markets?

    <p>Individual investors</p> Signup and view all the answers

    Which one of these statements about secondary money markets is true?

    <p>They are vital for reallocating available liquid funds</p> Signup and view all the answers

    Which one of these is NOT a purpose of capital markets?

    <p>Trade debt securities with maturities of less than one year</p> Signup and view all the answers

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