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Multiple Choice Questions 1. Which of the following is/are not characteristic of a money market instrument? A. Liquidity B. Marketability C. Long maturity D. Liquidity premium E. Long maturity and liquidity premium 2. You sold a futures contract on oats at a futures price of 233.75 and at the time of expirationthe price was 261.25. What was your profit or loss? A. $1375.00 B. −$1375.00 C. −$27.50 D. $27.50 E. $1325.00 3. Treasury Inflation-Protected Securities (TIPS) A. pay a fixed interest rate for life. B. pay a variable interest rate that is indexed to inflation. C. provide a constant stream of income in real (inflation-adjusted) dollars. D. have their principal adjusted in proportion to the Consumer Price Index. E. provide a constant stream of income in real (inflation-adjusted) dollars and Dhave their principal adjusted in proportion to the Consumer Price Index. 4. Which one of the following is not a money market instrument?
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