Subjects finance

False Statement

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False Statement


1. The problem asks to identify the false statement among four given statements about financial instruments. 2. Let's analyze each statement: - Statement 1: "Fixed income instruments are debt instruments issued by the government, corporations, and other organisations, which pay regular interest payments and provide the return of the principal amount at the maturity date." This is true by definition. - Statement 2: "Money market instruments are maturing in less than 12 months." This is true; money market instruments typically have maturities less than one year. - Statement 3: "Treasury notes mature between 2 and 10 years." This is true; treasury notes generally have maturities in that range. - Statement 4: "Three types of money market instruments are treasury bills, negotiable certificates of deposit, and government bonds." This is false because government bonds are long-term debt instruments, not money market instruments. 3. Therefore, the false statement is the fourth one.