Instruments of Money Market

41. Treasury bills are considered to be the safest and most liquid instrument in the money market.

42. Commercial paper has the highest credit risk among the instruments of the money market.

43. Certificates of deposit are commonly traded in the secondary market.

44. Repurchase agreements are typically used by banks to manage their long-term liquidity needs.

45. Treasury bills have a fixed interest rate for a specific period of time.