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Risk Management of Money Market Investments Involves All of the Following Except Credit Risk. B Liquidity Risk. Potential for Default

Problemas

Risk management of money market investments involves all of the following except credit risk. b liquidity risk. potential for default when backed by the federal government. d interest rate risk.

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Respuesta

The correct answer is c) potential for default when backed by the federal government.Risk management of money market investments involves managing various types of risks, such as credit risk, liquidity risk, and interest rate risk. However, money market investments backed by the federal government are considered to have a very low risk of default, as they are typically guaranteed by the government. Therefore, the potential for default when backed by the federal government is not a typical risk associated with money market investments and is not a factor in their risk management.