XYZ Corporation is trying to decide whether it should buy money market instruments or leave its funds on deposit at a commercial bank. Which of the following is an advantage of buying money market instruments over leaving funds on deposit at a commercial bank that XYZ should be aware of?   a.  ​Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank.   b.  ​Money market instruments are more liquid than funds on deposit at a commercial bank.   c.  ​Money market instruments are safer than leaving funds on deposit at a commercial bank.   d.  ​Money market instruments involve a financial middleman.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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XYZ Corporation is trying to decide whether it should buy money market instruments or leave its funds on deposit at a commercial bank. Which of the following is an advantage of buying money market instruments over leaving funds on deposit at a commercial bank that XYZ should be aware of?

 

a. 

​Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank.

 

b. 

​Money market instruments are more liquid than funds on deposit at a commercial bank.

 

c. 

​Money market instruments are safer than leaving funds on deposit at a commercial bank.

 

d. 

​Money market instruments involve a financial middleman.

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