Which of the following money-market securities has no active secondary market? A

Marketing Dec 24, 2020

Which of the following money-market securities has no active secondary market?

A. Certificates of deposit (CD's),

B. Commercial paper,

C. Banker's acceptances,

D. Treasury bills,

E. All money-market securities have active secondary markets.

Expert Solution

The answer is B. Commercial Paper

T-bills are issued by the government, which will have the least risk of default.
Banker's acceptances and CDs are issued by commercial banks, which will represent less risk compared to the commercial papers issued by corporations.
The securities that have less risk would be actively traded on the secondary market.

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