Question 5

All are true about money markets except:

a. In general, the money markets are widely perceived to be efficient in the sense that the prices reflect all available public information.

b. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds.

c. Because money market securities have a short-term maturity and typically cannot be sold easily, they provide investors with a low degree of liquidity.

d. Money market security values are less sensitive to interest rate movements than bonds.