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What is the most popular money market security? Elaborate.

What is the most popular money market security? Elaborate.

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Expert Solution

Most popular money market security is treasury bills because it is risk free security and it will be reflecting that there is very high liquidity associated with the securities and these are issued by United States treasuries and they are risk-free in nature and they will be backed by the government also so they will be used by investors to the large extent in order to invest as they will be risk free and they are also determinant of the risk free rate and they are also used in yield curve and all other term structure so there is a very high relevance related to treasury bills.

Treasury bills are issued by Federal Reserve and there will be short term bills which are backed by the government and they are completely risk free as it is said theoretical and they will be used as a risk free rate for the short period of time.

jeff jeffy answered 2 years ago
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