ACCA FM Syllabus B. Financial Management Environment - The role of money and capital markets - Past Papers ^{1 / 4}

Which of the following statements are correct?

(1) A certificate of deposit is an example of a money market instrument

(2) Money market deposits are short-term loans between organisations such as banks

(3) Treasury bills are bought and sold on a discount basis

A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3

Which of the following statements are features of money market instruments?

1 A negotiable security can be sold before maturity
2 The yield on commercial paper is usually lower than that on treasury bills
3 Discount instruments trade at less than face value

A. 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3