Because these securities are more liquid and generally have smaller price fluctuations,corporations and banks use the ________ securities to earn interest on temporary surplus funds.
A)money market
B)capital market
C)bond market
D)stock market

Question

Quizplus · Accepted Answer

The money market consists of short-term, highly liquid financial instruments that are used by corporations and banks to earn interest on temporary surplus funds. These securities have smaller price fluctuations and are more liquid than those in the capital market, bond market, or stock market. Therefore, A) Money market is the best choice.

Because These Securities Are More Liquid and Generally Have Smaller