{"id":49512,"date":"2024-04-15T22:56:48","date_gmt":"2024-04-15T22:56:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49512"},"modified":"2024-04-15T22:56:48","modified_gmt":"2024-04-15T22:56:48","slug":"financial-security-issues-by-major-banks-and-risk-depends-on-strength-of-issuer-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/financial-security-issues-by-major-banks-and-risk-depends-on-strength-of-issuer-is-classified-as\/","title":{"rendered":"Financial security issues by major banks and risk depends on strength of issuer is classified as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;negotiable certificate of deposit&#8221; option2=&#8221;mutual funds&#8221; option3=&#8221;U.S treasury bills&#8221; option4=&#8221;commercial paper&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. commercial paper<\/strong><\/p>\n<p>Commercial paper is a short-term unsecured promissory note issued by a company. It is a debt instrument that matures in 270 days or less. Commercial paper is considered to be a high-quality investment because it is backed by the creditworthiness of the issuer. The risk of investing in commercial paper depends on the strength of the issuer.<\/p>\n<p>A negotiable certificate of deposit (CD) is a time deposit that can be sold before maturity. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per institution. The risk of investing in a CD depends on the length of time to maturity and the interest rate.<\/p>\n<p>A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. Mutual funds are classified by their investment objective, such as growth, income, or balanced. The risk of investing in a mutual fund depends on the type of securities that the fund invests in.<\/p>\n<p>A U.S. Treasury bill is a short-term debt obligation issued by the U.S. government. Treasury bills are considered to be one of the safest investments available because they are backed by the full faith and credit of the U.S. government. The risk of investing in a Treasury bill is very low.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;negotiable certificate of deposit&#8221; option2=&#8221;mutual funds&#8221; option3=&#8221;U.S treasury bills&#8221; option4=&#8221;commercial paper&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-49512","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Financial security issues by major banks and risk depends on strength of issuer is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/financial-security-issues-by-major-banks-and-risk-depends-on-strength-of-issuer-is-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial security issues by major banks and risk depends on strength of issuer is classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;negotiable certificate of deposit&#8221; 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