All of the features or characteristics listed below are generally true of the U.S. money market except one. Which feature or characteristic below is not generally true of the nation's money market?
A) Retail market
B) Payments made with federal funds
C) Dominated by a small number large financial institutions
D) Security prices and yields not greatly influenced by size of transactions volume
E) Maturities of loans and securities traded are one year or less
F) Market and default risk are lower than is true of the capital market

Question

Quizplus · Accepted Answer

The U.S. money market is primarily a wholesale market rather than a retail market. It is dominated by large financial institutions, involves transactions in securities with maturities of one year or less, and is characterized by lower market and default risks compared to the capital market. Transactions volumes do not greatly influence security prices and yields, and payments can be made with federal funds.

All of the Features or Characteristics Listed Below Are Generally