EIP Practice Questions - EFPA European Investment Practitioner Exam

Which of the following is a key characteristic of money market instruments?

High maturity, high credit risk, and low liquidity High liquidity, short-term maturity, and relatively low risk Variable dividend payouts, long-term maturity, and high price volatility No secondary market trading and guaranteed return by the central bank

Correct Answer:

High liquidity, short-term maturity, and relatively low risk

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