Which of the following financial assets would be traded on the money market?(1 point)
Responses
a stock purchased for $500
which can be traded immediately
a stock purchased for 500 dollars which can be traded immediately
a stock purchased for $50
which can be traded immediately
a stock purchased for 50 dollars which can be traded immediately
a bond sold at a face value of $500
offering a 3%
annual yield and a 5-year maturity
a bond sold at a face value of 500 dollars offering a 3 percent annual yield and a 5-year maturity
a bond sold at a face value of $100
offering a 0.5%
annual yield and a 6-month maturity
a bond sold at a face value of 100 dollars offering a 0.5 percent annual yield and a 6-month maturity
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1 answer
The correct answer is: a bond sold at a face value of $100 offering a 0.5% annual yield and a 6-month maturity. Bonds are traded on the money market, which deals with short-term debt securities with maturities of one year or less. The other options involve stocks, which are traded on the stock market.
1 answer