Money Market Institutions - SS2 Economics Past Questions and Answers - page 1

1

What is the typical maturity of short-term loans provided by money market institutions?

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A

Less than one year

B

One to two years

C

Two to five years

D

More than five years

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2

Which of the following is an example of a money market institution?

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A

Stock exchange

B

Insurance company

C

Credit union

D

Hedge fund

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3

What is the primary function of money market funds to investors?

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A

Long-term investing

B

Providing low-risk investment options

C

Providing venture capital

 

D

Speculating on stocks

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4

Which of the following is NOT an example of a money market institution?

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A

Commercial bank

B

Savings and loan association

C

Credit card company

D

Credit union

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5

What role do money market institutions play in financial markets?

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6

What types of securities do money market funds typically invest in?

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