1. The money market is the market where investors trade

1. Assets of which the maturities are more than 1 year
2. Government T-Bills
3. Federal government bonds
4. Corporate bonds
5. None of these answers is correct

1. Your financial adviser suggests 4 investment options. Investment A pays a 15% return compound annually. Investment B pays a 15% return compound semi-annually. Investment C pays a 15% compound quarterly. Investment D pays a 15% return compound monthly. Which investment option will you accept?

1. Option A
2. Option B
3. Option C
4. Option D

1. One of your friends owes you 10000$. He gives you the choices of receiving 10000$ today or 12800$ in 2 years (December 2023) or 14800$ in 4 years (December 2025). If the interest rate is 12% compound semi-annually, which option is the most rational?

1. 10000$ today
2. 12800$ in 2 years
3. 14800$ in 4 years
4. I'll be indifferent