1) Which one of these is a characteristic of money market preferred stock?

Multiple Choice

• A floating dividend

• Interest rate reset daily

• No dividend payments

• Totally tax-exempt interest

• More price volatility than ordinary preferred

2) Money market securities:

Multiple Choice

• are issued only by governmental and banking organizations.

• pay interest that is exempt from federal taxation.

• generally mature in 6 to 18 months.

• are highly marketable.

• tend to have a high level of default risk.