Which of the following statements best describes financial markets?
A)Rates of return on T-bills are the highest among all major financial securities.
B)Money market mutual funds are illiquid.
C)Money markets are markets for long-term debt and common stocks.
D)Euro-Canadian market time deposits are instruments issued by banks outside Canada.

Question

Quizplus · Accepted Answer

The Euro-Canadian market refers to deposits and loans in Canadian dollars that are transacted outside of Canada, typically involving banks. These instruments are indeed issued by banks outside of Canada, making option D the correct statement. Options A, B, and C are incorrect because T-bills typically offer lower returns compared to riskier securities, money market mutual funds are designed to be highly liquid, and money markets deal with short-term debt instruments, not long-term debt and common stocks.

Which of the Following Statements Best Describes Financial Markets