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Discuss money markets. Money market securities are debt offerings with a maturity of one year or...

Discuss money markets. Money market securities are debt offerings with a maturity of one year or less. They are very liquid and can be sold in a secondary market. Discuss the contents of the most popular money market securities and whether money market securities can be justified by scripture.

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Expert Solution

Money market securities are often considered a good place to invest funds that are needed in a shorter time period usually one year or less. Money market Intruments include banker's acceptance, certificates  of deposits and commercial paper. Banker's acceptance are typically used to finance international transactions in goods and services , certificate of deposits are large denomination, negotiable time deposits issued by commercial paper take the form of short term, unsecured promissory notes issued by financial and non financial corporations.

Some combinations of this product makes up a money market fund . All money market funds are required to have a dollar weighted average portfolio maturity that cannot exceed 90days. While money market securities are highly liquid In a few days compared to months or years with a CD. The interest you earn on your money tends to be quite low and may not keep pace with inflation.


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