In comparing money market and capital market instruments, money market instruments are typically
A)riskier than capital market instruments.
B)more liquid than capital market instruments.
C)less liquid than capital market instruments.
D)riskier, but more liquid, than capital market instruments.

Question

Quizplus · Accepted Answer

Money market instruments are typically short-term debt securities that are highly liquid and low-risk. Capital market instruments, on the other hand, are long-term securities that are less liquid and often carry higher levels of risk. Therefore, money market instruments are more liquid than capital market instruments.

In Comparing Money Market and Capital Market Instruments, Money Market