Among all money market instruments, ___________ are the most liquid.Multiple ChoiceCPsADRsT-billsCorrectT-notesCDs

To fill in the blank in the statement "Among all money market instruments, ___________ are the most liquid," we should analyze the provided options:

1. CPs (Commercial Papers): Short-term unsecured promissory notes issued by corporations.
2. ADRs (American Depositary Receipts): Certificates representing shares of a foreign stock, not a money market instrument.
3. T-bills (Treasury Bills): Short-term government securities with maturities of one year or less.
4. T-notes (Treasury Notes): Government securities with maturities of 2 to 10 years, less liquid than T-bills.
5. CDs (Certificates of Deposit): Time deposits offered by banks with a fixed interest rate and maturity date.

Analysis

• Among these options, Treasury Bills (T-bills) are generally recognized as the most liquid money market instruments because they are issued by the government, have a large market, and can be easily bought and sold with minimal price movement.

Final Answer

Among all money market instruments, T-bills are the most liquid.