SIE Exam Question 508: Answer and Explanation

Question: 508

The money market is a place where issuers go to:

• A. Obtain short-term financing.
• B. Obtain long-term financing.
• C. Exchange money market instruments to their mutual benefit.
• D. Offer higher interest rates for a higher yield.

Correct Answer: A

Explanation:

A: The money market is a place where issuers go solely for short-term financing, typically under a year.