IFSE Canadian Investment Funds Course (CIFC) Practice Test 2025 - Free CIFC Practice Questions and Study Guide

Question: 1 / 400

Which of the following is a Money Market security?

Bankers' Acceptances

A Money Market security refers to a short-term financial instrument that is generally considered safe and liquid, with maturities of one year or less. Bankers' Acceptances fall into this category because they are time drafts that a bank guarantees, commonly used in international trade. These instruments are given a high degree of liquidity and are often used by companies to finance short-term needs.

Both Certificates of Deposit and Bankers' Acceptances are indeed part of the Money Market. However, corporate bonds have longer maturities and are typically considered a long-term investment, while stocks represent ownership in a company and do not qualify as Money Market instruments because of their inherent risk and lack of fixed maturity. Therefore, the selected answer accurately identifies Bankers' Acceptances as a Money Market security.

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Cerfiticates of Deposit

Corporate Bonds

Stocks

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