Series 7 practice questioneasyMoney Market — Overview — Scenario
An investor seeking the SAFEST short-term investment with maximum liquidity should consider:
- AHigh-yield corporate bonds
- BUS Treasury bills✓ Correct answer
- CEmerging market sovereign debt
- DSmall-cap growth stocks
Explanation
Why B — US Treasury bills
US Treasury bills are considered the safest and most liquid short-term investment available. They are backed by the full faith and credit of the US government (virtually no credit risk), have short maturities (up to 52 weeks), and trade in the deepest and most liquid market in the world. T-bills serve as the benchmark for the risk-free rate and are commonly used for capital preservation and cash management.
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