Question : Which of the following statement is incorrect for money market instruments?
Option 1: Money market instruments are highly liquid
Option 2: Instruments of money market are quite expensive
Option 3: Money market instruments are highly risky
Option 4: None of the above
Correct Answer: Money market instruments are highly risky
Solution : Money market instruments are less risky. The instruments of money market are unsecured. Still they are less risky due to short duration of investment and financial soundness of their issuers.
Hence, option C is correct.