Money market instruments are generally issued by:
A) firms in dire need of cash to maintain their credit rating.
B) firms of the highest credit rating.
C) firms of the lower credit ratings.
D) all of the above.

Question

Quizplus · Accepted Answer

Money market instruments are short-term debt securities issued by organizations with the highest credit ratings. These are considered to be very low-risk investments, as the issuers have a proven record of repayment and are typically large, financially stable entities such as governments, corporations, and financial institutions. Firms in dire need of cash would typically issue bonds or seek other forms of financing, as money market instruments are generally not used to address immediate liquidity concerns. Similarly, firms with lower credit ratings may not have access to the money markets, as investors are typically unwilling to bear the additional risk associated with these organizations.

Money Market Instruments Are Generally Issued By