SIE Exam Question 342: Answer and Explanation

Question: 342

Commercial paper, bankers' acceptances and large time deposits are part of what segment of the fixed income market?

• A. Money market
• B. Asset-backed
• C. Municipal
• D. Corporate bonds

Correct Answer: A

Explanation:

A - Debt maturing in one year or less trades in the money market. Money market investments are attractive to investors because they offer high liquidity. Many investors access this market through money market mutual funds.